Renting Out Your Coast Home After You PCS

By Randy Richardson, Broker Associate, The 4th Right Team

This post is part of our Keesler AFB PCS guide.

Quick Answer: If you keep your Mississippi Gulf Coast home as a rental when PCS orders move you, four things change. Your homeowners policy usually has to become a landlord policy, which typically costs about 25% more. Mississippi assesses rentals at 15% of true value instead of the 10% owner-occupied rate, and the home may lose its homestead exemption. You take on Mississippi landlord rules, like returning a tenant's security deposit within 45 days. And any depreciation you take while it's a rental can be taxed when you sell. A VA loan doesn't stop you from renting, but run all four numbers before you sign a lease.

Plenty of military families keep their Coast house when they leave. The base area rents well, and a lot of people plan to come back. But the house you lived in and the house you rent out are two different financial animals. Here's what changes.

Can I rent out my VA loan home when I PCS from Keesler or NCBC Gulfport?

Usually, yes. Federal law requires you to certify that you intend to live in the home when you apply and again at closing. Most lenders read "a reasonable time" to move in as about 60 days. If you're on active duty and can't move in, your spouse can meet the requirement for you.

Nothing in that rule says you have to live there forever, and PCS orders are about the most recognized reason there is to move out. Many lenders' loan documents expect you to live in the home for around a year, so if you're leaving sooner than that, call your servicer before you sign a lease.

There's one more cost to keeping the house. The VA loan on it keeps part of your entitlement tied up, which can shrink what you can borrow with no down payment at your next base. Ask your lender to run your remaining entitlement before you decide.

What changes on insurance when my home becomes a rental?

Your policy type does. A standard homeowners policy may not cover losses while the home is rented long term. You'll need a landlord or rental dwelling policy, which usually adds liability coverage and loss of rental income. The Insurance Information Institute says those policies typically run about 25% more than homeowners coverage.

On the Coast, that's 25% on top of a number that's already high. If you're not sure what yours runs now, here's what home insurance really costs down here. Call your agent before your tenant moves in, not after the first claim.

Flood is still its own policy, so tell that carrier the home is now a rental too. And put renters insurance for the tenant's belongings in the lease. Your landlord policy won't cover their stuff.

Will my property taxes go up if I rent out my home?

Probably, and this is the one that catches military owners. Mississippi assesses owner-occupied homes at 10% of true value. All other residential property, including rentals, is assessed at 15%. That's 50% more assessed value before anything else changes.

You can also lose the homestead exemption. Mississippi requires you to own and live in the home as your primary residence on January 1. The Department of Revenue says service members stationed outside Mississippi can keep homestead if they keep Mississippi residency and stay in compliance. A home rented to tenants is a different question. Call your county tax assessor before you lease it, and get the answer in writing if you can.

Build that into your rent math. Most owners don't notice until their escrow payment jumps.

What does it take to be a landlord on the Coast from out of state?

More than finding a tenant. Mississippi's Residential Landlord and Tenant Act sets the rules, and some have hard deadlines. You have 45 days after a tenancy ends to return the security deposit, with a written, itemized list of anything you keep.

From 800 miles away, most owners hire a licensed property manager. Expect them to handle leasing, repairs and inspections, and to charge a percentage of the rent. Ask how they handle hurricane prep and post-storm checks. That's the part you can't do from a phone at your next duty station.

Short-term rental is a different business with its own city rules, and some Coast cities cap or restrict it. Here's what each Coast city requires before you list it for vacation stays.

How does renting affect my taxes when I sell later?

Two ways. The good news is that service members on qualified official extended duty can suspend the IRS five-year window for the home sale exclusion for up to 10 years. That generally means orders at a duty station at least 50 miles away, or living in government quarters. So renting for a few years doesn't automatically cost you the exclusion of up to $250,000 of gain, or $500,000 filing jointly.

The catch is depreciation. Once the home's a rental, you'll generally depreciate it on your tax return. When you sell, the exclusion doesn't cover the depreciation you took, or could have taken, after May 6, 1997. That part gets taxed. Talk to a tax professional who works with military families before your first rental tax return, not the year you sell.

How do I know if the rent will actually cover it?

Add up the real monthly cost, not just the mortgage. That means principal and interest, the landlord policy, flood if you carry it, the higher property tax, management fees, maintenance and a vacancy cushion. Then compare it to realistic rent for your area. Our Keesler PCS guide puts it plainly: don't assume the house will rent for what your mortgage costs.

Your equity matters too. If most of your money is locked in the house and you'll need a down payment or your entitlement at the next base, renting can squeeze you. If you're buying at the new duty station while you still own here, here's how carrying two mortgages plays out.

If the numbers don't work, selling may be the better call. That decision runs on your report date, and my post on selling your Coast home on PCS orders walks through the timeline.

By the Numbers

10% vs. 15%: Mississippi assessment ratio for owner-occupied homes vs. rentals
January 1: date you must own and live in the home to claim homestead
About 25%: typical added cost of a landlord policy over homeowners coverage
45 days: deadline to return a tenant's security deposit in Mississippi
60 days: typical window to move in after closing on a VA loan
Up to 10 years: how long service members can suspend the five-year home sale test
May 6, 1997: depreciation taken after this date isn't covered by the exclusion

The Bottom Line

Keeping your Coast home when you PCS can be a smart long-term move, but only if you price in what changes the day it becomes a rental: the insurance, the taxes, the landlord rules and the depreciation. Run those numbers before your report date. If you've got orders in hand, start with a home value evaluation so you can compare renting against selling side by side. If selling wins, I'll walk you through how I list and sell for military families, including the ones who've already left.

Frequently Asked Questions

Can I rent out my house if I bought it with a VA loan?
Usually, yes. The VA requires you to intend to live in the home when you buy it, not to live there forever. Many lenders expect about a year of occupancy, so call your servicer if you're leaving sooner. PCS orders are a widely recognized reason to move.

Do property taxes go up if I rent out my home in Mississippi?
Usually. Mississippi assesses owner-occupied homes at 10% of true value and other residential property at 15%, and a rental can lose the homestead exemption. Check with your county tax assessor before you sign a lease.

Do I need different insurance to rent out my home?
Yes. A standard homeowners policy may not cover a long-term rental. You'll need a landlord or rental dwelling policy, which typically costs about 25% more, and your tenant should carry renters insurance.

How long does a Mississippi landlord have to return a security deposit?
Forty-five days after the tenancy ends. If you keep any part of it, you have to send the tenant a written, itemized list of what you're claiming.

Will I owe tax on depreciation when I sell my rental?
Generally, yes. The home sale exclusion doesn't cover depreciation taken, or allowable, after May 6, 1997. Talk to a tax professional before you file your first rental return.

Sources

38 U.S. Code § 3704(c): VA occupancy certification and spouse occupancy for active-duty borrowers
Veterans United, VA Loan Occupancy Requirements: 60-day reasonable time standard, lender occupancy expectations, renting after a PCS
IRS Publication 523, Selling Your Home: $250,000 and $500,000 exclusion, suspension for qualified official extended duty, depreciation after May 6, 1997
Mississippi Department of Revenue, Property Tax FAQ: Class I 10% and Class II 15% assessment ratios
Mississippi Department of Revenue, Homestead Exemption: January 1 ownership and occupancy, military stationed outside Mississippi
Mississippi Code § 89-8-21: 45-day security deposit return and itemization
Insurance Information Institute, Coverage for Renting Out Your Home: landlord policy coverage and typical cost difference

Keep reading: Keesler AFB PCS Guide: Buying a Home Near Biloxi in 2026 and Using a VA Loan to Buy Near Keesler or NCBC Gulfport

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About the Author
Randy Richardson is a Broker Associate and Team Leader of The 4th Right Team at CENTURY 21 J. Carter & Company. He serves buyers and sellers across the Mississippi Gulf Coast.

Randy Richardson | Broker Associate
The 4th Right Team | Century 21 J. Carter & Company
📞 Office: (228) 731-3881 | Cell: (228) 547-9999
📧 realtorrandyrichardson@gmail.com
🌐 www.The4thRightTeam.com

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