Can You Afford O‘ahu on Military Pay?
Orders to O‘ahu can feel like a dream assignment — endless beaches, a strong military community, and the aloha spirit all around you. But the question many military families ask is: “Can we really afford to live in Hawaii on our BAH?”
The reality is that O‘ahu has one of the highest costs of living in the country. However, with the right knowledge and a clear strategy, military families can thrive here while taking full advantage of their VA benefits.
The Real Cost of Living on O‘ahu
Housing
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Average home price: Around $1 million (2025).
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Average rent: $3,000+ per month for a modest 3-bedroom near base.
Because rent is so high, many families find it smarter to buy with a VA loan. Your Basic Allowance for Housing (BAH) can often cover your mortgage payment, meaning you’re building equity instead of paying rent.
Transportation & Gas
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Gas price: Roughly $4.50 per gallon.
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Commutes vary depending on where you live. Ewa Beach and Kapolei offer newer homes, but the drive to Pearl Harbor or Schofield can be long. Many families factor in traffic when choosing a neighborhood.
Groceries & Essentials
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Groceries run 30–40% higher than the mainland.
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Imported items like milk and produce are especially expensive. A gallon of milk may cost $6–$7.
Utilities
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Electric bills: Among the highest in the U.S. Expect $250–$350 per month, depending on A/C use.
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Internet: $70–$100/month.
Lifestyle Costs
Eating out, childcare, and recreational activities also cost more compared to most U.S. cities. Still, many families find that Hawaii’s outdoor lifestyle — hiking, beaches, parks — offers free or low-cost ways to enjoy island life.
How Military Families Can Make It Work
Leveraging Your VA Loan
The VA loan is one of the strongest tools available to military buyers:
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No down payment required
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No PMI (Private Mortgage Insurance)
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Competitive interest rates
On O‘ahu, this can make the difference between being priced out of the market and becoming a homeowner.
Think Long-Term: PCS and Beyond
One concern many families have is: “What happens when we PCS again?”
The good news is that many service members turn their O‘ahu homes into long-term rental properties. Hawaii’s strong rental demand means your property may cover its costs — and sometimes even generate income — long after you’ve moved to your next duty station.
Choosing the Right Neighborhood
Every family’s priorities are different. Some want the newer builds in Kapolei or Ewa Beach, while others prefer shorter commutes from Pearl City or Mililani. Working with a local real estate agent who understands both the island market and military lifestyle can help you find the right balance.
Why Work with a Relocation Expert
The cost of living in Hawaii is high, but your BAH and VA loan benefits can be powerful tools when used wisely. The key is partnering with someone who understands both the unique challenges of O‘ahu and the needs of military families.
I’m Kina Knisley, a relocation expert with Keller Williams Honolulu. I’ve helped countless military families navigate PCS moves to O‘ahu, find homes that fit their lifestyle and budget, and set themselves up for long-term financial success.
If you’re preparing for a PCS to Hawaii and want guidance tailored to your family, I’d love to help you make the move as smooth as possible.
