Moving to Monterey on Military Orders: Renting, Buying, and Using Your VA Loan

Last checked: October 2026. BAH, VA loan rules, and housing availability change. Confirm the details for your situation with your installation's housing office and a VA-approved lender. I'm not in the military and I'm not a veteran, but I can help you find the right home here and connect you with people who know the military and VA side inside and out, including lenders who work with VA loans every day.

The Monterey Peninsula has a long history of military presence. Today, the Defense Language Institute at the Presidio of Monterey, the Naval Postgraduate School, and other commands bring service members and their families here every year, many of them from out of state and many on fairly short timelines.

If you've just gotten orders here, this guide covers the housing side: where military families live, what BAH looks like, and whether renting or buying makes more sense for your assignment.

Where you'll be working

The two biggest military employers on the Peninsula are:

• The Presidio of Monterey, home of the Defense Language Institute Foreign Language Center (DLI). It sits on the hill above downtown Monterey.
• The Naval Postgraduate School (NPS), part of Naval Support Activity Monterey, on the former Hotel Del Monte grounds on the east side of Monterey.

There's also a Coast Guard station in Monterey, and Fort Hunter Liggett is about an hour and a half south, in the southern part of the county. If you're assigned there, the housing picture is different, since it's much farther from the Peninsula.

On-post housing

Military family housing for DLI and NPS is run by The Parks at Monterey Bay, a public-private venture. Its main neighborhoods are:

• La Mesa Village, in Monterey, close to NPS
• Fort Ord Village, in Seaside, on former Fort Ord land

Homes range from two to four bedrooms. Eligibility and availability depend on your rank, family size, and installation, so contact the housing office as soon as you have orders. The leasing office is in Seaside, and Military OneSource has current contact information.

Many families choose on-post housing, especially for shorter assignments. Others prefer to rent or buy off post for more space, a specific neighborhood, or a chance to build equity.

BAH in Monterey

Monterey is one of the more expensive housing markets for military families, and BAH reflects that. Here are some examples of 2026 monthly BAH for the Monterey area, with dependents:

Pay grade	2026 BAH with dependents
E-4	$3,249
E-5	$3,465
E-6	$3,867
O-1	$3,519
O-3	$4,824
O-4	$5,259
O-5	$5,565

Source: MilPayTools, citing Defense Travel Management Office data. Rates change every January. Check your exact rate with the official BAH calculator at travel.dod.mil.

BAH is meant to cover typical rent and utilities for your rank. Whether it covers what you want depends a lot on the area, the size of the home, and whether you're renting or buying.

Where military families live off post

Off post, military families live all over the Peninsula and beyond. A few areas come up often:

• Seaside and Marina. Close to both installations, near former Fort Ord, with a mix of older homes and newer neighborhoods. See the Seaside and Marina posts for more on each.
• Monterey. Closest to DLI and NPS, but generally more expensive.
• Pacific Grove. Close to the Presidio, with older homes on small lots. See the Pacific Grove post.
• Salinas and the Highway 68 area. More home for the money, with a longer commute.

Commutes can take longer than the distance suggests. Highway 68, for example, backs up in the morning from Salinas toward Monterey, and again in the late afternoon going the other way, especially between about 4 and 5. If you're looking at a home farther out, try the drive at the time you'd actually be making it. The Buyer's Guide chapter on the areas has an overview of each part of the county.

Rent or buy?

This is the big question, and the answer usually comes down to how long you'll be here and what you want to do with the home when you leave.

Renting often makes sense when:

• Your assignment is short. Many DLI courses and NPS programs run about a year or two, sometimes less.
• You don't want to deal with selling or managing a property when you PCS.
• You want flexibility while you learn the area.

Buying can make sense when:

• You'll be here for several years, or expect to come back.
• You want to keep the home as a rental after you leave and are comfortable being a landlord, or hiring a property manager.
• You want to put your VA loan benefit to work and build equity instead of paying rent.

There's no one right answer. Buying for a short tour can work, but the costs of buying and selling can eat into any gain if you sell quickly. It's worth running the numbers with a lender and a local agent before you decide.

If you rent: the Servicemembers Civil Relief Act (SCRA) generally lets you end a residential lease early when you receive PCS orders, with written notice and a copy of your orders. Many local leases also include a military clause. Read your lease and ask about it before you sign.

Using a VA loan in Monterey County

A VA loan is one of the best benefits you have, and it works well here, even with high prices.

• No down payment required for eligible buyers with full entitlement.
• No monthly mortgage insurance, unlike most low-down-payment loans.
• No VA loan limit with full entitlement. Since 2020, borrowers with full entitlement aren't capped by the county loan limit, though your lender will still look at your income and debts to decide what you can afford.
• A funding fee, which can usually be rolled into the loan. For 2026, it's 2.15% of the loan amount for first-time use with no down payment, and 3.3% for later use. It's lower with a down payment of 5% or more. Veterans receiving VA disability compensation, Purple Heart recipients, and some others are exempt.

A few things that matter more here than in some other markets:

• The VA appraisal. The VA appraiser checks both the value and the home's basic condition. Some older homes on the Peninsula need repairs to meet the VA's minimum property requirements, so it helps to know that going in.
• Writing a strong offer. VA offers can be just as competitive as conventional ones, especially with a responsive lender who knows the local market. Your agent can help make sure your offer is presented well. Chapter 8 of the Buyer's Guide covers offers in detail.
• Occupancy. A VA loan is for a home you intend to live in. If you later PCS and want to keep the home as a rental, that's generally allowed, but talk to your lender about how it affects your entitlement for your next purchase.
• Water and local rules. If you're thinking about renting the home out later, or adding a bathroom, local rules on the Peninsula can affect that. See Chapter 6 of the Buyer's Guide.

If you're a veteran with a 100% service-connected disability rating, you may also qualify for California's disabled veterans' property tax exemption. Check with the Monterey County Assessor.

Buying from out of state

A lot of military buyers start their search before they arrive. That's very doable:

• Get pre-approved first, with a lender experienced in VA loans. Chapter 4 of the Buyer's Guide covers financing.
• Video tours. In California, you'll sign a buyer representation agreement with your agent before private or video showings. Your agent can walk homes with you live on video.
• Remote signing. Much of the paperwork can be signed electronically, and the rest can usually be handled with a notary wherever you are.
• Time it with your orders. Escrow often takes about 30 days. Working backward from your report date helps avoid paying for temporary lodging longer than you need to.

Where to focus your own research

• As soon as you have orders: Contact the installation housing office about on-post availability, and look up your exact BAH.
• If you're considering buying: Talk to a VA lender early, and decide how long you're likely to be here and what you'd do with the home when you leave.
• Before you sign a lease: Check for a military clause, and know your rights under the SCRA.

If you're moving to the Monterey Peninsula on orders and want help figuring out whether to rent or buy, reach out. I'm happy to walk through it with you, even if you're just starting to plan.

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This is general information, not legal, financial, or tax advice. BAH, VA loan rules, and housing programs change over time. Confirm the details with your installation housing office, a VA-approved lender, and the appropriate agencies. I'm a real estate agent, not a lender or an attorney.