A Permanent Change of Station is a major life event that often brings unexpected financial burdens. Despite the logistical support provided by the military, families frequently incur significant out-of-pocket expenses, with data showing that military families lose an average of $5,000 per move due to unreimbursed costs . To help mitigate these expenses, the Department of Defense provides a Dislocation Allowance (DLA). Understanding how to maximize this benefit is crucial for maintaining your family’s financial stability during a relocation.
The DLA is a flat-rate financial benefit designed to partially reimburse service members for the miscellaneous expenses associated with relocating a household . Recently, the DoD implemented policy changes to better support military families, including an increase in the DLA for E-1 to E-6 service members . Furthermore, DLA payments are now processed automatically one month prior to the move date, preempting out-of-pocket expenses and providing vital liquidity when it is needed most .
The amount of your DLA depends on your paygrade and dependency status. For example, an E-5 with dependents receives a significantly higher DLA than an E-4 without dependents. Understanding your specific entitlement is the first step to maximizing this benefit.
Your DLA should be viewed as a strategic financial resource, not simply a reimbursement for moving truck costs. Here are the most effective ways to deploy your DLA:
Utility Deposits and Setup Fees: Many utility companies require deposits when establishing new accounts. Your DLA can cover these initial costs without depleting your personal savings.
Temporary Housing Gaps: If there’s a gap between your departure from your current home and your arrival at your new one, your DLA can help cover temporary lodging, meals, and transportation costs.
Home Inspection and Appraisal Fees: If you’re purchasing a home at your new duty station, these professional services can be expensive. Your DLA can help offset these costs.
Address Change and Documentation Updates: Driver’s license, vehicle registration, and other administrative changes incur fees that add up quickly.
Emergency Repairs and Adjustments: Your new home may require immediate repairs or adjustments. Your DLA can serve as an emergency fund for these unexpected expenses.
One of the most strategic uses of your DLA is to preserve your down payment savings. By using your DLA for transition-related expenses, you keep your down payment fund intact and protected. This is particularly important if you’re planning to purchase a home at your new duty station. The more liquid capital you have available for your purchase, the stronger your financial position.
To maximize your DLA, start planning immediately after receiving your PCS notification. Create a detailed budget of all anticipated moving-related expenses. Categorize them into those covered by military moving services, those covered by your DLA, and those you’ll need to cover from personal funds. This proactive approach ensures you’re not caught off guard by unexpected costs.
Protecting your financial health during a PCS allows you to focus on the broader picture, such as securing the right home in your new location. East Coast Capital is committed to supporting military families through every phase of their financial journey. Our nationwide network of Mortgage Loan Officers understands the nuances of military pay, allowances, and relocation timelines.
If you are preparing to relocate and need expert mortgage guidance, contact us today.
Let’s protect your financial future. Speak with a military lending specialist about maximizing your PCS benefits.
[2] Defense Travel Management Office. (n.d. ). Dislocation Allowance. Retrieved from
[3] U.S. Army Benefits. (n.d. ). Permanent Change of Station (PCS) CONUS. Retrieved from https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Permanent-Change-of-Station-(PCS )-CONUS?serv=122
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