An analysis of implementing a rental policy within the DoD's military family housing program

This thesis investigates the option of implementing a rental system within the Department of Defense military family housing program, as outlined by the DoD in Defense Management Report Document 966 and a Congressional Budget Office study from 1993. Specifically, it determines the effects of a DoD rental system on the La Mesa housing program at the Naval Postgraduate School, Monterey, California, with the purpose of identifying possible financial implications for the DoD and the La Mesa housing management. The analysis focuses on the ability of this program to continue to operate, build its inventory and compete in the local housing market by collecting rent and using a revolving fund. After investigating the program's cost and simulating setting initial rental rates, this study concludes that a rental system at the Naval Postgraduate School would provide sufficient net income and cash flow to continue to operate. Further, this study discusses several other financial implications related to alternative housing programs, political realities and revolving fund concepts that may prove beneficial to policymakers and future researchers.