Where does your military pay go furthest? - Military News | News From Afghanistan, Iraq And Around The World - Military Times

Where does your military pay go furthest?

When Capt. Tyler Hart arrived in San Diego two years ago, the first thing that struck him was the cost of living.

“My wife and I noticed a big difference, as far as our money not stretching quite as far,” said Hart, a series commander at Marine Corps Recruit Depot San Diego.

To make ends meet, he and his wife settled in Poway, even though it often means making a 70-mile round-trip commute to Camp Pendleton and burning hundreds of gallons of gas at California prices — among the highest in the country and currently about 35 cents per gallon higher than the national average.

Meanwhile, halfway across the country, Air Force Capts. Mark and Sarah Johnson are living the good life in Wichita Falls, Texas, a few minutes’ drive from Sheppard Air Force Base, where he’s a pilot and she’s a maintenance officer.

They own their 2,600-square-foot home, complete with a pool and a four-car garage — and still have enough in the bank to cover bills and getaways.

How do they do it? “That’s due to everything being cheaper here,” Mark said.

Of the estimated 450,000 active-duty personnel changing duty stations this year, choosing their next assignment is like playing financial roulette: Some will win, others will lose, and in some cases, the winnings and losses can be huge.

Those heading to Army posts and Air Force bases are the most likely to gain, because most of those bases are in lower-cost areas in the nation’s heartland. Navy and Marine Corps bases, on the other hand, are typically in pricier coastal locales.

But even so, there are huge differences. Marines see the extremes at Marine Corps Logistics Base Albany, Ga., where the cost of living is almost 20 percent below the national average, and Marine Corps Base Hawaii, where it’s almost 76 percent higher than the national average.

But even so, there are huge differences. Soldiers see the extremes at Fort Riley, Kan., where the cost of living is almost 25 percent below the national average, and Schofield Barracks, Hawaii, where it’s almost 76 percent higher than the national average.

But even so, there are huge differences. Sailors see the extremes at Naval Submarine Base Kings Bay, Ga., or Coast Guard Air Station Elizabeth City, N.C., where the cost of living is, respectively, 18 percent and 17 percent below the national average, versus Naval Station Pearl Harbor, Hawaii, where it’s almost 76 percent higher than the national average.

But even so, there are huge differences. Airmen see the extremes at Sheppard Air Force Base, Texas, where the cost of living is more than 21 percent below the national average, and Hickam Air Force Base, Hawaii, where it’s almost 76 percent higher than the national average.But while once these differences could be devastating for a military family, that’s no longer really the case. More than a decade of robust military pay raises and double-digit increases in housing and food allowances have pushed the purchasing power of most service members well beyond the median in most communities.

In low-cost areas, most troops now live substantially better than the local population, and in high-cost areas, they can more easily weather the higher prices.

Cost of living

To create a picture of where military paychecks go furthest, Military Times compared military compensation for four paygrades — E-3, E-6, O-3 and O-5 —with Census Bureau data for median male civilian earnings for the counties surrounding the most populous military installations.

Military Times also looked at housing prices and rental costs, which account for about 30 percent of a major metro area’s cost of living index, using data provided by Sperling’s BestPlaces, a Portland, Ore.-based urban research firm.

While life generally is costlier on the coasts than in the heartland, differences within regions, including coastal areas, can be vast. For example, housing costs 20 percent less than the national average in Jacksonville, Fla., but twice as much in San Diego, according to an index maintained by the nonprofit Council for Community and Economic Research in Arlington, Va.

And while housing and grocery costs were relatively cheap in Corpus Christi, Texas, for example, utility prices there were significantly higher than the national average, said Dean Frutiger, project manager for CCER’s cost of living index.

Understanding cost-of-living differences can be a huge factor in how happy you will be in your next duty station — so it’s important to do your homework before relocating, notes Army Reserve Lt. Col. June Lantz Walbert, a public affairs officer assigned to U.S. Army Japan and a certified financial planner with USAA Financial Planning Services.

“Don’t just think that you’re going to get a sufficient allowance for that new, higher cost of living,” she said. Walbert said online cost-of-living calculators can be a quick, helpful guide to see how much you stand to gain or lose in living expenses in a new duty station.

Comparing pay

In most military communities, military compensation is competitive with median salaries for civilian men — even at the most junior paygrades, the Military Times analysis shows.

Lance corporals at all but two posts in the analysis — Henderson Hall, Va., near the Pentagon, and Marine Corps Base Quantico, Va. — make at least 75 percent of the local median male wage. In fact, E-3s at Camp Lejeune, N.C., and Marine Corps Base Hawaii are paid better than the median salary in those communities.

As they move up the ranks, in almost every duty station, service members make more than the local median civilian salary — in some cases, far more.

For instance, a single staff sergeant with 10 years of service at Marine Corps Base Quantico, Va., receives $61,505 in military compensation (defined as basic pay, housing and subsistence allowances, plus the federal tax savings resulting from those allowances being tax-free).

That’s $1,700 more than the area’s median earning of $59,766, according to 2005-07 Census Bureau figures and adjusted for inflation.

But move that same staff sergeant to Camp Lejeune, N.C., and his buying power skyrockets. His military compensation of $55,889 is more than double the local median salary of $26,745.

So while Lejeune may not offer the cultural benefits, night-time entertainment options or spouse employment opportunities that can be found in Quantico, a short drive south of Washington, D.C., and the booming Northern Virginia suburbs, its lower prices mean that staff sergeant can enjoy a substantially greater standard of living there.

Privates first class at all but two posts in the analysis — Fort Myer, Va., and Fort Meade, Md. — make at least 75 percent of the local median male wage. In fact, E-3s at Fort Campbell, Ky., Fort Polk, La., Fort Bliss, Texas, and Schofield Barracks and Fort Shafter, Hawaii, are paid better than the median salary in those communities.

As they move up the ranks, in almost every duty station, service members make more than the median civilian salary — in some cases, far more.

For example, a single staff sergeant with 10 years of service stationed at Fort Meade, north of Washington, D.C., earns $65,473 in military pay, (defined as basic pay, housing and subsistence allowances, plus the federal tax savings resulting from those allowances being tax-free).

That’s $2,100 more than the area’s median earning of $63,352, according to Census Bureau figures adjusted for inflation.

But move that same staff sergeant to Fort Bliss, Texas, and his buying power skyrockets. He takes home almost double the median civilian salary: $54,737 compared with $31,524.

So while Bliss may not offer the cultural benefits, night-time entertainment options or spouse employment opportunities that can be found in the national capital region, its lower prices mean a staff sergeant can enjoy a substantially greater standard of living there.

Seamen at most posts in the analysis make at least 75 percent of the local male civilian wage. In fact, E-3s at Naval Postgraduate School in Monterey, Calif.; Naval Air Station Lemoore, Calif.; Naval Station Norfolk, Va.; and Naval Station Pearl Harbor, Hawaii, collect more in pay than the median salary in those areas.

As they move up the ranks, in almost every duty station, service members make more than the median civilian salary — in some cases, far more.

For example, a single petty officer first class with 10 years of service at the Washingon Navy Yard in the nation’s capital receives $68,833 in military compensation (defined as basic pay, housing and subsistence allowances, plus the federal tax savings resulting from those allowances being tax-free).

That’s $15,000 more than the area’s median civilian earning of $53,248, according to Census Bureau figures adjusted for inflation.

But move that same petty officer first class to Naval Amphibious Base Little Creek, Va., and his buying power skyrockets. He takes home $24,000 more per year than the median earning: $60,567 compared to $36,082.

So while Little Creek may not offer the cultural benefits, night-time entertainment options or spouse employment opportunities that can be found in the national capital region, its lower prices mean a petty officer first class can enjoy a substantially greater standard of living there.

Airmen first class at all but five posts in the analysis make at least 75 percent of the local male civilian wage. In fact, E-3s at Hickam Air Force Base, Hawaii, are paid better than the median salary in those communities.

As they move up the ranks, in almost every duty station, service members make more than the median civilian salary — in some cases, far more.

For example, a single technical sergeant with 10 years of service at McGuire Air Force Base, N.J., earns $64,449 in military compensation (defined as basic pay, housing and subsistence allowances, plus the federal tax savings resulting from those allowances being tax-free).

That’s almost $5,000 more than the area’s median earning of $59,595, according to Census Bureau figures adjusted for inflation.

But move that same technical sergeant to Tinker Air Force Base, Okla., takes home $14,000 more than the median earning: $54,193 compared to $40,047.

So while Tinker may not offer the cultural benefits, night-time entertainment options or spouse employment opportunities that can be found just an hour north of McGuire in New York City, its lower prices mean a petty officer first class can enjoy a substantially greater standard of living there.

Quality of life

Staff Sgt. Hee Won Yoon was born in Korea and grew up in Maryland, a relatively high-cost state. He’s enjoying the quieter, less costly life afforded by his assignment at Marine Corps Logistics Base, Albany, Ga.Yoon, an equipment specialist, lives with his wife and two children in a 1,700-square-foot, three-bedroom house in neighboring Lee County. He chose the area in part for the quality of its schools, though the decision put him farther from on-post benefits such as the PX and commissary, gyms, fitness center and swimming pool.

The rural area offers limited access to Korean foods, so Yoon began growing his own vegetables in a small garden in his yard — a luxury he probably wouldn’t have the space to do in Washington, D.C., he said. He also has invested in the property, adding a screen room to the house and a sprinkler system to the yard.

“It’s a better place to raise a family, compared to trying to deal with all the stress and financial-problems that may arise if you live in a fairly-densely populated area, such as D.C.,” he said.

Matthew Scallan, meanwhile, grew up on the beach in the Florida panhandle and enlisted in the Navy as a teenager.

After serving two tours in Japan, he knew life would be expensive at his next assigned duty station: Naval Station Pearl Harbor. But he jumped at the chance to move there and bought buy a condo in Mililani, 17 miles from base.

Scallan, an information systems technician first class with Commander Naval Surface Group Middle Pacific, said his cost-of-living allowance helps with the mortgage payments and he works hard to keep expenses down.

He replaced light bulbs and appliances with energy-efficient models, and hangs his clothes out to dry to save on running the clothes dryer. If he needs to travel, he shops for discounted flights and hotels at the Navy and Air Force’s tickets and tours offices, and he and his wife lean toward surfing and barbecues on the beach over going out to restaurants and nightclubs.

It’s worth it, he said. “You can’t get a better view than sitting on the beach and watching the ocean.”

Sticker shock

While changing duty stations can sometimes result in shockingly higher living costs, it’s hardly a recent phenomenon.

Eleven years ago, Army Staff Sgt. Eduardo Collado thought he was ready for his new duty station.

Collado and his family were living on Fort Hamilton, a coastal defense post in Brooklyn at the entrance to New York Harbor. Having spent almost three years in New York City, one of the most expensive areas in the country, Collado figured he could easily handle a permanent change-of-station move to Fort Meade, Md.

But at that time, the cost of renting a two-bedroom apartment in Laurel, Md., a suburban community sandwiched between Baltimore and Washington, D.C., proved too much.

“Once the bills started hitting and we started seeing how crazy it got, I went to the housing office and said, ‘When is your next opening?’” he said. “Within 30 days, we had a house on post.”

Now he’s at Fort Bragg, N.C., a place where a single service member at his rank makes almost 1½ times the typical civilian and the cost of living is more than 11 percent below the national average.

Military pay and allowances have improved, too. He gets proportionately far more in housing allowance than he did in Brooklyn after the Defense Department’s five-year effort to reduce out-of-pocket housing costs for troops and their families.

That’s enough to pay for a home just 15 minutes from Bragg.

“It’s perfect here,” said Collado, an administrative supervisor with the Secretary of the General Staff of U.S. Army Special Operations Command.

Growing up in San Francisco, one of the most expensive cities in the nation, Air Force Capt. George Nuno was accustomed to a high cost of living. But even he was surprised by the differences in housing costs after transferring in 2001 from Tyndall Air Force Base, Fla., to Hanscom Air Force Base, Mass.

“Going from the Florida panhandle to Boston was a bit of a shock,” said Nuno, now assigned to Peterson Air Force Base, Colo. “Rentals were much pricier there.”

While the Defense Department has since overhauled housing allowances to better reflect local rental rates, many service members still pay out of pocket to live in better housing than what the Pentagon deems adequate for someone of their rank and family status.

Navy Counselor 1st Class (AW) Kelley O’Neill, of Naval Air Station North Island in San Diego, Calif., pays slightly more than her housing allowance for a two-bedroom, two-bath apartment with a garage in Mission Valley, about 12 miles from base.

She said the peace of mind that comes from living in a safe, near location is worth the money she pays.

“Some of these younger kids, they’d rather spend only half their BAH on rent and save the other half,” she said. “Since I live alone, security is more important to me.”But higher housing allowances don’t necessarily help those who choose to buy rather than rent.

Hart, the Marine captain in San Diego, bought a condo. Then he and his wife watched in horror as “within a few months, the housing market just fell apart,” he said. “We lost 20 percent of the value. We can’t refinance because we’re underwater and I’ve got to PCS in a year. What do I do with a condo I can’t sell?”

Unlike most Americans, there’s a law that just might save the Harts and others like them from their predicament. Consider it another military benefit.

As part of the economic stimulus package enacted earlier this year, Congress expanded the military Homeowners Assistance Program with $555 million to help reimburse service members forced to sell their homes during the downturn. Details are online at http://hap.usace.army.mil.

Although the value of his home has dropped, Hart recognizes that military people are doing pretty well. In the San Diego area, a single O-3 with four years of service makes $93,603 — almost double the median civilian salary of $48,828.

“I definitely can’t complain about pay,” Hart said.

But San Diego’s high cost of living is another matter, he noted: “Your dollar doesn’t go as far as it does back East.”

Online exclusive

Calculate your pay and the pay of your civilian counterpart at the Military Times Pay Atlas