Sell or Rent Your Columbus House When You PCS? The Numbers That Actually Decide It

“We’ll just rent it out.” It is the default plan for a lot of families PCSing out of Fort Benning, and sometimes it is exactly the right call. But the pitch usually stops at “the rent covers the mortgage” and skips the numbers that actually decide it.

Here are the numbers we run with every family deciding whether to sell or rent their house when they PCS.

1. The tax-free sale clock starts the day you move out

When you sell your main home, you can generally exclude up to $250,000 of gain ($500,000 married filing jointly) if you owned it and lived in it for at least two of the five years before the sale (IRS Publication 523). Rent it out long enough and you fail that test, which turns a tax-free sale into a taxable one.

Service members can pause that clock for up to 10 years

If you are on qualified official extended duty, you can elect to suspend the five-year period for up to ten years. That generally means serving at a duty station at least 50 miles from the home, or living in government quarters under orders, on orders for more than 90 days. Stack the suspension on the normal window and a family can rent for a full tour or two and still sell tax-free.

Three things it does not do: it is an election, not automatic; it applies to one property at a time; and it does not erase depreciation recapture.

Before you list, run through the Military Seller’s Playbook: the ten steps we walk every PCS seller through before a sign goes in the yard.

2. Depreciation recapture applies whether you claim it or not

While a home is a rental, the IRS lets you depreciate it. When you sell, the depreciation portion of the gain is taxed at up to 25%, separately from the exclusion. The part that surprises people: recapture is figured on the depreciation you were allowed to take, not just what you actually deducted. Skipping the deduction does not skip the bill. This is the piece to review with a tax professional before you sign a lease.

3. The real monthly math

“Rent covers the mortgage” is not the same as “renting makes money.” Build the whole column:

• Management. Managing from another duty station usually means hiring a property manager. Expect a monthly fee as a percentage of collected rent, plus a leasing fee each time a tenant is placed.
• Vacancy. An empty month is lost rent plus the mortgage you are still paying.
• Repairs and turnover. Paint, carpet, HVAC calls and a make-ready between tenants.
• Insurance. A landlord policy is different from a homeowner’s policy, and usually costs more.
• Your tenant pool. Near Fort Benning, many renters are military families, so the rent the market will bear tracks the local BAH rates. Check the current BAH lookup for the ranks most likely to rent your house.

4. Your VA entitlement is part of the decision

If the house has a VA loan, keeping it does not necessarily stop you from buying at your next duty station with another VA loan. We break that down in how to keep your VA home and buy again. It is often what makes renting realistic.

How to decide

We are an Army family and have weighed this exact choice ourselves. There is no default answer, only the one that fits your numbers.

Arrio’s take

Here’s the rule Kelsey and I have used on our own homes. We rent it out when the rent covers PITI (principal, interest, taxes and insurance), the management fee, and money set aside for reserves and repairs. If it doesn’t cover all of that, selling is usually the better option, as long as the sale clears your selling costs.

When renting turns out to be the wrong call, it’s almost always the same story: the rent covered the mortgage payment but not everything else, and the gap comes out of your pocket every month from your next duty station.

Sell or rent when you PCS: common questions

Can I rent out a house I bought with a VA loan?

Yes, once you have genuinely lived in it as your primary residence. VA expects you to move in within a reasonable time after closing, usually about 60 days, and a PCS move is a recognized reason to move out and rent it later. Keep your orders with your records in case the lender ever asks.

How long can I rent it and still sell tax-free?

Generally you need to have lived in the home for two of the five years before the sale, which usually leaves about three years of renting. If you are on qualified official extended duty, you can elect to pause that five-year clock for up to ten years. Either way, depreciation from the rental years is taxed when you sell. Confirm your situation with a tax professional.

Do I need a property manager if I rent it out?

Not legally, but managing a Columbus rental from another duty station is hard: tenant screening, repairs, rent collection and turnovers all happen while you are hundreds of miles away. Managers usually charge a percentage of monthly rent plus a fee to place a tenant. Get two or three quotes and ask exactly how they approve repairs. Our Fort Benning property management guide lists the fees to ask about and who we trust.

Can I rent it now and decide to sell later?

You can, but the tax clock keeps running while you wait, and selling a tenant-occupied home is harder than selling a vacant one. Run both columns before you leave: what you would net from selling now, and what renting realistically earns after vacancy, repairs and management.

If you'd like a second set of eyes on your rent-or-sell math from a Fort Benning realtor who owns rentals too, we'll run it with your real numbers.

Before you rely on any of this: this article is general education, current as of the date published, and not legal, tax, or lending advice. Allowances, loan rules, tax law and market numbers change, so verify the figures with the official source linked above, your lender, and a tax professional before you act on them. This is not tax advice; confirm how the Section 121 exclusion, the military suspension and depreciation recapture apply to you with a qualified tax professional. Arrio Granum is a licensed REALTOR® with Coldwell Banker Kennon, Parker, Duncan & Davis in Columbus, GA.