U.S. Senators Elizabeth Warren and Ruben Gallego have called for an investigation into the practices of landlords using RealPage's property management software. They suspect that the software may be contributing to increased rental costs for military families, potentially allowing landlords to exploit taxpayer money meant for housing allowances.
In a letter addressed to Secretary of Defense Pete Hegseth, the senators expressed concerns about the potential misuse of Basic Allowance for Housing (BAH) funds. This allowance is provided by the Department of Defense (DoD) to help servicemembers cover housing expenses. The DoD spent $24 billion on these allowances in 2023.
The letter was also signed by Senators Richard Blumenthal, Catherine Cortez Masto, Tammy Duckworth, Andy Kim, Ed Markey, Jeff Merkley, Chris Murphy, Bernie Sanders, Tina Smith, Mark Warner, Reverend Raphael Warnock, Peter Welch, and Ron Wyden.
Concerns have been raised about landlords setting rents based on BAH levels rather than market conditions. A study indicated that it is "common for landlords to base their rent on the BAH for a particular rank," affecting servicemembers' income stability.
RealPage's services are under scrutiny as they may allow landlords to share proprietary information and set prices using non-public data. The Department of Justice and state attorneys general have accused RealPage of contributing to excessive rental costs in areas where DoD has increased housing allowances. Florida is investigating whether RealPage violated antitrust laws after military housing rents rose across several locations in 2022 and 2023.
The rising cost of housing is not only impacting military families financially but also affecting recruitment and retention efforts within the military. Families face delays in moving or are forced into unsafe or low-quality housing due to frequent relocations.
A Government Accountability Office report highlighted these challenges, noting that high housing prices lead servicemembers to incur debt or endure long commutes for better living conditions.
"The Department of Defense has a responsibility to protect military families from predatory private housing companies and ensure that taxpayer dollars meant for military families are not being pocketed by unscrupulous landlords," stated the senators.
Senator Warren has been vocal about issues with privatized military housing and continues advocating for measures to safeguard military families.