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PCS Orders and Your Huntsville Home: Keep, Rent or Sell

When orders come, you can sell, rent or keep the house. The military pause on the capital gains 5-year test and VA entitlement restoration often decide which makes sense, so run the numbers early.

Reviewed October 31, 2026 by George Lensch, broker, Wyze Realty. General information about Alabama, not legal, tax or financial advice.

PCS orders arrive with a report date and a long list of things to do, and the house is usually the biggest item on it. Huntsville is a military and federal town, and a lot of families here face the same question every few years: keep the house, rent it out, or sell it. There is no single right answer. This guide lays out the options, the tax and VA loan rules that often tip the decision, and the local resources on Redstone Arsenal that can help.

Your Three Options

Our sell, rent or keep calculator runs the comparison with your numbers. The net sheet below shows what selling would likely leave you with.

Capital Gains: the Five-Year Clock Can Pause for Military

When you sell your main home, you can generally exclude up to $250,000 of gain, or $500,000 if married filing jointly, if you owned and lived in the home for at least 2 of the 5 years before the sale. PCS moves are exactly how service members fall outside that window.

Federal rules help. Members of the uniformed services (and the Foreign Service and some others) on qualified official extended duty can choose to suspend the 5-year test for up to 10 years. The total look-back period cannot exceed 15 years, and only one property can be suspended at a time.

Qualified official extended duty means active duty for more than 90 days or for an indefinite period, at a duty station at least 50 miles from your main home, or while living in government quarters under orders.

In practice, this can mean a family that lived in a Huntsville home for two years, then rented it out during back-to-back assignments far away, may still qualify for the exclusion years later. Renting the home brings its own tax items, such as depreciation, so talk to a CPA or tax professional before you decide. This is general information, not tax advice.

Your VA Loan Entitlement

If you bought with a VA loan, your entitlement is tied up in that loan until it is resolved. The VA explains:

• Entitlement is restored once the VA loan is paid off and the property is sold or otherwise disposed of.
• A one-time restoration is allowed if you pay off the loan but keep the property.
• If a buyer assumes your VA loan, your entitlement is restored only if the buyer is an eligible veteran who substitutes their own entitlement.
• After a foreclosure, deed in lieu or partial claim, entitlement is not restored until the VA's loss is repaid.

To request restoration, send VA Form 26-1880 with proof the loan was paid off, such as a paid-in-full letter or the settlement statement from your sale. If you plan to buy again with a VA loan at your next station, ask your lender how your remaining entitlement works if you keep and rent the Huntsville home.

Weighing sell versus rent before your report date? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.

If You Rent It Out

Renting can make sense when rent covers the payment and costs with room to spare, and you have a plan for repairs and vacancy while you are hundreds or thousands of miles away. A few things to know:

• Budget beyond the mortgage. Taxes, landlord insurance, repairs, turnover between tenants and a reserve for big items like a roof or HVAC.
• Military tenants can end a lease early. Under the Servicemembers Civil Relief Act, a servicemember or dependent can end a residential lease after receiving PCS or deployment orders of 90 days or more, with written notice and a copy of the orders. For monthly rent, the lease ends 30 days after the next rent due date. In a military town, plan for that possibility.
• Fair housing rules apply. Screening must be consistent and lawful for every applicant.
• Distance makes management harder. Midnight water leaks, showings, rent collection and inspections all need someone local.

If you decide to rent, Wyze Property Management, our sister company, can manage it for you: marketing, screening, leases, rent collection, maintenance and inspections while you are away. And if renting turns out not to fit later, we can help you sell then, including with a tenant in place (see selling a rental with tenants).

Is renting right for you? Questions to ask yourself

• Would the rent cover the mortgage, taxes, insurance, management and a repair reserve, with some left over?
• Could you cover the payment for a month or two if the house sat vacant or a big repair came up?
• Do you expect to come back to Huntsville, or would you sell in a few years anyway?
• How would renting affect your VA entitlement for your next purchase?
• Have you asked a tax professional how rental years affect the home sale exclusion and depreciation?

If the honest answers point to selling, that is a fine outcome. If the house is worth less than you owe, see options when you are underwater before deciding.

SCRA Protections for Your Own Mortgage

The Servicemembers Civil Relief Act also protects you as a borrower, for debts you took on before entering service:

• 6% interest cap. Debts taken on before service, including mortgages, can be capped at 6% interest. Send the creditor written notice and a copy of your orders (or a commanding officer's letter) no later than 180 days after service ends. Interest above 6% is forgiven, not deferred. For mortgages, the cap lasts during service plus one year.
• Foreclosure protection. For a mortgage taken out before service, protection lasts during service and for one year after. A non-judicial foreclosure requires a court order.

If you are behind or worried about payments, see FHA, VA and USDA options and talk to Redstone Legal Assistance.

Selling From Your Next Duty Station

Many PCS sales close after the family has already moved. That is normal. Listing agreements and offers are signed electronically, and the closing documents can be signed remotely. Our guide to selling an Alabama house from out of state walks through each step, including Alabama's remote notarization rules and the new 2026 seller identity rules.

Some service members sign closing documents with a power of attorney. Redstone Legal Assistance offers powers of attorney and notary services on a walk-in basis. Ask your closing attorney ahead of time whether they will accept a power of attorney and what form they need, before you leave town. See also selling with a power of attorney.

Help on Redstone Arsenal

Legal Assistance (Office of the Staff Judge Advocate)

• Phone: 256-876-9005. Email: usarmy.redstone.amcom.mbx.osja-legal-assistance@army.mil.
• Building 3439, Honest John Road, Redstone Arsenal, AL 35898. Monday to Friday, 8:30 a.m. to 3:30 p.m.
• Notary and powers of attorney are walk-in; wills and other matters need an appointment.
• Eligible: active duty, retirees, qualifying Reserve and Guard retirees, and their dependents.

ACS Relocation Readiness

Army Community Service Relocation Assistance, Aerobee Road 3443, Redstone Arsenal, AL 35898, (256) 876-5397. Services include move planning, a lending closet, newcomer orientation, sponsorship and help with housing and schools. Call ahead to confirm hours.

Your PCS Home Checklist

A Simple PCS Timeline

1. As soon as orders arrive. Decide keep, rent or sell. Get a price opinion and a rent estimate, and run both through the calculators.
2. Talk to a tax professional. Ask about the home sale exclusion, the military suspension and how renting would affect a later sale.
3. If selling, list while you are still local if you can. Prep, photos and repairs are easier with you in town, but a sale can finish after you leave.
4. If renting, line up management and insurance. Switch to a landlord policy and set up a reserve account.
5. Before you leave. Get a power of attorney or confirm remote signing with the closing attorney, leave keys and remotes, and give us a way to reach you.
6. After closing. Send VA Form 26-1880 with your settlement statement if you want your entitlement restored.

Have a report date coming up? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.

Common Questions

Talk It Through, Confidentially

Big decisions are easier with someone in your corner. Whether you are ready to sell, still deciding, or just need to understand your options, call or schedule a time to talk. The first conversation is free, private and comes with no obligation. If what you really need is an attorney, a CPA or a housing counselor, we will tell you that and point you in the right direction.

Schedule a Confidential Call Call or Text (256) 808-6861

Sources

• 26 CFR 1.121-5, suspension of the 5-year period for military (eCFR)
• IRS Publication 523, Selling Your Home
• IRS Publication 3, Armed Forces' Tax Guide
• VA Home Loans, eligibility and entitlement restoration
• VA Form 26-1880
• U.S. Department of Justice, SCRA financial and housing rights
• Redstone Arsenal Legal Assistance
• Redstone ACS Relocation Assistance

Related Guides

Wyze Realty LLC, Huntsville, Alabama. Information on this page is general and educational, is not legal, tax, financial or credit advice, and may not reflect the most current law. Consult an Alabama attorney, CPA or HUD-approved housing counselor about your situation. All real estate services are provided in accordance with the Fair Housing Act.