It depends on your numbers and your plans. Renting can make sense if the rent covers your full monthly cost, you expect to come back to Hampton Roads, and you're ready to be a long-distance landlord under Virginia law. Selling is often simpler if you need your equity, your VA entitlement, or a clean break before you leave.
Key facts
- VA loans: VA requires that you'll live in the home you buy with a VA-backed purchase loan. While that loan stays open, the entitlement it used stays charged, but you may still have remaining entitlement for another VA loan.
- Entitlement restoration: VA can restore used entitlement after you sell and pay the loan in full, or one time if you repay the loan in full but keep the home.
- Taxes on sale: The IRS home sale exclusion is up to $250,000 of gain, or $500,000 for married couples filing jointly. Service members on qualified official extended duty can suspend the 5-year test period for up to 10 years.
- Landlord law: The Virginia Residential Landlord and Tenant Act applies to single-family homes. The deposit cap is two months' rent, and the notice period for unpaid rent is 14 days.
- Military tenants: Virginia lets service members end a lease early for PCS and other qualifying orders, with no liquidated damages.
- Market right now: Altos Research counted 605 single-family homes for sale in Virginia Beach on November 1, 2026, with a median of 49 days on market and price cuts on about 39% of listings.
How do I decide whether to rent or sell?
Start with a simple monthly test. Add up your mortgage payment, property taxes, homeowners and flood insurance, any HOA or condo fees, a maintenance reserve and, if you hire one, a property manager's fee. Then compare that total with what similar homes actually rent for. If the rent doesn't cover the full cost, you'll be paying each month to keep the house.
Then ask the bigger questions:
- Will you come back? Some owners keep a home because they expect future orders to Hampton Roads or plan to retire here.
- Do you need the equity? A down payment at your next duty station may depend on it.
- Do you need your full VA entitlement? If your next purchase is large, an open VA loan can limit how much you can borrow without a down payment.
- Can you handle repairs from far away? A failed water heater or a storm claim is harder to manage from another state.
- What does the tax clock say? Renting for years can turn a tax-free sale into a taxable one, though service members get extra time.
If you're leaning toward selling, start with my guides on what your Virginia Beach home is worth and the cost to sell a house in Virginia Beach.
How does renting affect my VA loan and entitlement?
VA's purchase loan rules say you must live in the home you're buying with the loan. After you've done that, PCS orders are a common reason owners turn the home into a rental. Read your loan documents and ask your lender if you're unsure.
The bigger issue is entitlement. VA explains that you can restore entitlement you used before if you've sold the home and paid the loan in full, if a qualified Veteran buyer assumes your loan and substitutes their entitlement, or, one time only, if you've repaid the loan in full but kept the home.
If none of those apply, you may still have remaining entitlement. VA's method uses the county loan limit for the area you're buying in, multiplied by 25%, minus the entitlement you've already used. Lenders usually want your entitlement, a down payment or both to cover at least 25% of the loan. My VA loan guide for Virginia Beach walks through the basics.
What are the tax rules if I rent first and sell later?
The IRS lets you exclude up to $250,000 of gain from selling your main home, or $500,000 if you're married filing jointly, when you meet the ownership and use tests. Normally that means owning and living in the home for at least 2 of the 5 years before the sale.
Service members get more room. According to IRS Publication 523, members of the armed forces on qualified official extended duty can choose to suspend the 5-year test period for up to 10 years. Qualified duty means active duty for more than 90 days or an indefinite period, at a duty station at least 50 miles from the home or while living in government quarters under orders.
Two cautions from the same publication:
- You can't exclude the part of your gain equal to depreciation allowed or allowable after May 6, 1997. That amount may be taxed when you sell.
- You can suspend the 5-year period for only one property at a time.
Talk with a tax professional before you decide, especially if you've owned the home a long time or plan to rent it for several years.
What does Virginia law require of landlords?
The Virginia Residential Landlord and Tenant Act (VRLTA) applies to single-family and multifamily dwelling units statewide. A few rules every new landlord should know:
- Security deposits can't be more than two months' rent (§ 55.1-1226).
- Unpaid rent: If rent isn't paid, the landlord must give written notice and wait 14 days before terminating the lease for nonpayment (§ 55.1-1245).
- Payments: Landlords must accept rent and security deposits by check and money order (§ 55.1-1204). Landlords with four or fewer rental units don't have to accept credit or debit cards.
- Larger landlords: Some rules in the Code, including required payment plans and longer rent-increase notices, apply only to landlords who own more than four rental units.
If you plan to rent the home by the night or week instead, Virginia Beach has separate rules for that. See my guide to short-term rental rules in Virginia Beach.
What if my tenant gets orders too?
Virginia gives service member tenants the right to end a lease early. Under § 55.1-1235, a service member can terminate for PCS orders, temporary duty orders longer than three months, discharge or release from active duty, an order into government quarters, or certain stop-movement orders. The written notice must take effect at least 30 days after the next rent due date, and the landlord can't charge liquidated damages.
Plan for that turnover in your budget. A vacancy month or two can erase a year of thin cash flow.
What should I check before I list or lease?
- Insurance: Tell your insurer the home will be a rental. Coverage for a home you live in may not fit a rented one. My post on homeowners insurance nonrenewal in Virginia Beach explains how coverage decisions work in Virginia.
- Property management: Virginia's definition of a real estate broker includes anyone who leases or rents real estate for others for compensation. If you hire a manager, confirm their license on the DPOR website.
- Tax relief: Virginia's real estate tax exemption for veterans with a 100% service-connected, permanent and total disability applies to real property the veteran occupies as a principal place of residence. If you have it, ask the city how a move affects it.
- School zones: Renters often ask which schools serve the address. Point them to the VBCPS School Locator and my Virginia Beach school zone guide, rather than promising an assignment.
What is the Virginia Beach market like for sellers right now?
Altos Research's November 1, 2026 snapshot showed 605 single-family homes for sale in Virginia Beach, up from 572 in mid-October, with a median list price of $569,000 and a median of 49 days on market. About 39% of listings had a price cut. REIN reported that Virginia Beach's September median sales price was up 8.4% from a year earlier, while regional inventory hit its highest level since April 2020.
That mix means pricing matters. If you plan to sell before a report date, give yourself time for showings, an inspection period and a closing. If your home is in an area near a base, such as Hilltop or Red Mill, see neighborhoods near NAS Oceana for how AICUZ noise zones and disclosures fit in.
Ready to run your rent or sell numbers?
Get a free home value estimate, browse homes for sale near NAS Oceana to see what's competing with yours, then contact me or call or text (757) 919-8874. I'll help you compare a sale price with realistic rent before your orders date.
Barry Jenkins, Legacy Home Team at LPT Realty
Sources
- U.S. Department of Veterans Affairs: VA-backed purchase loan
- U.S. Department of Veterans Affairs: Eligibility for VA home loan programs (reusing your COE)
- U.S. Department of Veterans Affairs: VA home loan entitlement and limits
- IRS Publication 523, Selling Your Home
- Code of Virginia § 55.1-1201, Applicability of the VRLTA
- Code of Virginia § 55.1-1204, Terms and conditions of rental agreement
- Code of Virginia § 55.1-1226, Security deposits
- Code of Virginia § 55.1-1235, Early termination of rental agreement by military personnel
- Code of Virginia § 55.1-1245, Noncompliance with rental agreement
- Code of Virginia § 54.1-2100, Definitions (real estate broker)
- Code of Virginia § 58.1-3219.5, Exemption for disabled veterans
- Altos Research weekly Virginia Beach report (single-family), November 1, 2026
- REIN: Median Sales Prices Up, Down Across Region (September 2026 data)
Frequently asked questions
Can I rent out a house I bought with a VA loan when I PCS?
Generally yes. VA requires that you'll live in the home you're buying with the loan, so you need to move in as your residence first. After that, PCS orders are a common reason owners rent the home out. Check your loan documents and talk to your lender about your situation.
Will keeping my VA loan stop me from using a VA loan at my next duty station?
Not always. While the old loan is open, the entitlement it uses stays tied up, but you may still have remaining entitlement for another VA loan. VA explains how to calculate it using the county loan limit. A lender can review your Certificate of Eligibility with you.
If I rent my home out, do I lose the tax break on selling a home?
You might, but service members get extra time. The IRS lets you exclude up to $250,000 of gain, or $500,000 married filing jointly, if you meet the ownership and use tests. Members of the armed forces on qualified official extended duty can suspend the 5-year test period for up to 10 years. Depreciation after May 6, 1997 can't be excluded.
Do Virginia landlord-tenant laws apply if I only rent out one house?
Yes. The Virginia Residential Landlord and Tenant Act applies to single-family and multifamily dwelling units across the state. Some newer rules, such as required payment plans and longer rent-increase notices, apply to landlords who own more than four rental units.
How much security deposit can I collect in Virginia?
Under Va. Code § 55.1-1226, a landlord can't demand or receive a security deposit of more than two months' rent.
Can my tenant break the lease if they get military orders too?
Yes. Virginia lets a service member end a lease for PCS orders, temporary duty orders of more than three months, discharge, an order into government quarters, or certain stop-movement orders. The notice must be effective at least 30 days after the next rent due date, and the landlord can't charge liquidated damages.
Who can manage my Virginia Beach rental while I'm gone?
Anyone who leases or rents real estate for others for compensation falls under Virginia's definition of a real estate broker, so a paid manager should hold a Virginia real estate license. You can check a license on the DPOR website before you sign.