The Hidden Costs of Relocating After Military Service

Here’s the truth: the military might cover your last move, but that doesn’t mean you’re in the clear financially. Many veterans underestimate how expensive it is to relocate after service, and those hidden costs can wreck your savings plan if you’re not prepared.

At Veteran Saves, we don’t sugarcoat financial transitions. This is what you need to know to prevent your relocation from becoming a financial setback.

Yes, the Military Covers One Final Move—But Read the Fine Print

When you separate or retire, the military typically pays for one final move, provided you follow the correct process. This is called your Final Move Entitlement.

If you’re separating, they usually pay to move you to your Home of Record—the place you lived when you enlisted. If you’re retiring, you have more flexibility and can move to a Home of Selection, which is pretty much anywhere in the U.S.

You have a time limit to use it. Most separating service members need to complete their move within 180 days. Retirees typically get one year, though you can sometimes request an extension. The key thing to remember is you must coordinate this move through your base’s transportation office. If you don’t, you might not get reimbursed at all.

And even when the military is paying for the move, there are a lot of things they won’t cover. That includes security deposits, pet transport, extra vehicles, utility setups, and moving-related hotel stays that fall outside your official TLE.

Veteran Saves recommends starting a relocation savings fund at least six months before your move. Even putting away $25 a paycheck can help cushion the costs the military doesn’t cover.

The Real Cost of Moving as a Civilian

Once you’re out, every cost is on you. Here are a few common expenses that add up quickly:

• Movers or truck rentals can run anywhere from $2,500 to over $7,000 depending on distance and how much stuff you have.
• You’ll likely need to cover gas, food, and lodging if you’re driving cross-country, which easily adds another $1,000 or more.
  
  
• Utility deposits can cost a few hundred dollars per service.
  
  
• If your housing timeline doesn’t line up perfectly, storage might be another unexpected expense.
  
  

If you choose to move yourself (a PPM or DITY move), you may be reimbursed—but it’s not always dollar-for-dollar. Many veterans assume they’ll break even and end up losing money.

No More BAH: Civilian Housing Hits Differently

That steady housing allowance? Gone. Civilian rent is based on the market, not your rank. And if you’re planning to buy a home using a VA loan, there are still out-of-pocket costs that catch people off guard.

You might have no down payment, but closing costs can still run several thousand dollars. You’ll also need to pay for inspections, moving costs, and setup fees for things like insurance or utilities. Many new veteran homeowners are surprised by how much cash they still need on hand, even with a VA loan.

Veteran Saves recommends keeping housing costs under 30 to 35 percent of your monthly income. If you find yourself stretching to make the numbers work, it might be time to reconsider your location or timing.

Relocating With a Family Means More Expenses

When you move your household, you’re not just moving furniture—you’re moving lives. That means added stress and extra costs.

You may have to pay new school registration fees, childcare deposits, or uniforms and supplies. If your spouse is also transitioning and doesn’t have work lined up, you may be dealing with a loss of income during an already stressful time. And don’t forget the everyday expenses that come from being temporarily out of routine. Those last-minute takeout meals or unplanned Target runs add up fast.

The First 60 Days Are the Most Financially Fragile

Here’s something many veterans don’t plan for: most civilian employers pay on a delayed schedule. It could take two to four weeks before your first check arrives, and sometimes longer before benefits like healthcare kick in.

That’s why you need a cushion. Save at least one month of living expenses if possible. Use a zero-based budget to track where every dollar is going, especially during your transition window. And try not to rely on credit cards unless it’s a true emergency—those balances are hard to bounce back from.

Veteran Saves encourages you to automate your savings during this time. Set it and forget it. Your emergency fund should be working behind the scenes, even if it’s small.

Watch for Scams and Shady Service Providers

Veterans are often targeted by companies who know you’re in a vulnerable place financially and emotionally. That includes landlords with hidden fees, moving companies who change prices mid-trip, and lenders pushing VA loans with inflated rates and junk fees.

Do your research. Read every contract. And don’t assume that a business with a flag or the word "patriot" in the name is automatically looking out for you. Look for housing counselors approved by HUD and stick to trusted VA and nonprofit resources when possible.

If you’re unsure what questions to ask or how to prep for your move, download our free Veteran Relocation Cost Checklist to walk you through the most overlooked expenses.

If you haven’t already, take the Veteran Saves Pledge and commit to building a solid financial foundation for your next chapter.