If you invest in rentals near Groton and New London, you know the Naval Submarine Base is the heartbeat of local demand. What can feel unpredictable week to week is actually quite steady year round when you look at the tenant pipelines and lease patterns. In this guide, you’ll see how the base, Electric Boat, and nearby institutions shape occupancy, pricing, and lease strategy so you can reduce vacancy and run a smoother operation. Let’s dive in.
Why the sub base anchors demand
The Naval Submarine Base New London brings a recurring flow of active duty service members, families, and civilian support staff. That creates a strong baseline for rentals across Groton, New London, and nearby communities.
How PCS cycles translate to leases
Permanent change of station moves generate regular inflows of tenants who need housing fast. You can expect a mix of 12‑month family leases and shorter needs for incoming or departing personnel. Summer often runs busier as more families relocate, so planning turns and marketing around that window helps you capture demand.
What BAH means for pricing
Military tenants often rely on Basic Allowance for Housing to cover rent. When you align asking rents with typical BAH levels for the area, you expand your qualified tenant pool and speed up leasing. Many landlords also streamline move‑in by accepting standard BAH documentation and timing.
Lease clauses that build confidence
Service members have federal protections for early termination when they receive orders. Clear military‑friendly clauses that follow the law both protect you and make your listing more attractive. Stating this up front in your marketing removes uncertainty and can shorten time on market.
Electric Boat and contractor tenants
General Dynamics Electric Boat drives steady, well‑paid workforce demand. Layer in subs and vendors supporting multi‑year submarine programs and you have meaningful year‑round occupancy potential.
Project cycles and unit preferences
Contractor projects can surge at specific times, creating short‑term housing needs for technical staff. These tenants often look for clean, furnished one‑bedrooms or two‑bedrooms with parking and fast internet. Longer‑tenured EB employees tend to prefer 2–3 bedroom townhomes, duplexes, or single‑family rentals that accommodate daily commuting and family life.
Corporate and short‑term arrangements
You can meet project timelines by offering 30–180 day furnished options with utility‑inclusive pricing. Corporate direct‑pay or relocation agreements help reduce payment friction and fill gaps between longer leases.
Other steady demand sources nearby
The U.S. Coast Guard Academy, local hospitals, and regional colleges add depth to the renter mix. You will see students, academy affiliates, traveling nurses, and adjunct faculty seeking smaller units or mid‑length leases. Tourism in Mystic and along the Thames River has a lighter impact on long‑term rentals but can support furnished short‑term demand in peak seasons.
Who rents and how they lease
Preferred unit sizes
- Military families and single service members: 1–3 bedrooms depending on household size.
- EB employees and contractors: 2–3 bedrooms for long‑term staff; furnished 1–2 bedrooms for temporary assignments.
- Students and academy affiliates: studios to 2 bedrooms or shared housing near transit and amenities.
- Healthcare and other professionals: 1–2 bedrooms or small homes with immediate availability.
Lease lengths and flexibility
- Standard 12‑month leases fit families and professionals and keep turnover manageable.
- 1–6 month furnished leases capture contractor and transient military demand.
- Include clear early‑termination language for service members to align with legal protections and reduce disputes.
Turnover and seasonality
- Expect a summer bump in moves tied to PCS schedules and family relocations.
- EB project cycles can drive rolling peaks outside summer.
- The combined base, defense, healthcare, and education footprint supports a stable, year‑round baseline.
Where to buy and what to offer
Property types for stability
- 2–3 bedroom single‑family homes and duplexes: popular with base families and longer‑tenure EB staff; yards and off‑street parking add value.
- Townhouses and garden apartments: lower maintenance for you and attractive to small families and professionals.
- Furnished 1‑bedrooms or flexible layouts: ideal for contractors, visiting professionals, and single service members; higher monthly rates but more management.
- Small multifamily (4–8 units): diversifies tenant mix and reduces vacancy risk at the cost of more active oversight.
Location and commute notes
- Immediate Groton neighborhoods within a 5–10 minute commute to the base and EB often command premium rents.
- New London and eastern Waterford offer commutable alternatives that may balance cost and access.
- Areas near the Coast Guard Academy and downtown New London attract tenants who value walkability and proximity to campus and services.
Features that keep tenants longer
- Off‑street parking for shift workers and commuters
- In‑unit or on‑site laundry
- Pet‑friendly policies with clear terms
- Fast, reliable internet service
- Furnished options for short‑term and corporate stays
- Responsive maintenance and easy online payments
Pricing, clauses, and operations
Pricing to the market and BAH
Track local rent comparables and consider how BAH levels and EB pay bands affect affordability. If you offer furnished units, price a premium and consider bundling utilities to simplify corporate or military budgeting.
Military‑friendly lease language
Use a standard 12‑month lease as your baseline, then add short‑term or corporate addenda for furnished stays. Include a clear, compliant early‑termination clause for active duty orders. Publish your maintenance response standards, such as 24–48 hour windows for essential repairs, to build trust.
Screening and relationships
Apply consistent screening that follows Connecticut landlord‑tenant law. For military tenants, verifying orders and BAH helps confirm affordability. For EB contractors, direct‑pay arrangements through corporate housing or relocation departments can lower risk and speed approvals.
Marketing channels that work
- List with military housing offices and reputable community groups to reach incoming service members and spouses.
- Build connections with Electric Boat HR, relocation contacts, and large subcontractors to capture project‑based demand.
Risks and trends to watch
- Defense budget changes, base realignments, or EB workforce shifts could affect demand.
- Local regulatory changes may influence short‑term rental feasibility.
- Adjustments to BAH or benefit policies can impact affordability and pricing power.
- Long‑term submarine programs and regional healthcare and education employment point to ongoing stability, supported by I‑95 and rail access for commuters.
Investor checklist
Use this quick list to align your next purchase or repositioning plan with local demand:
- Choose 2–3 bedroom homes or townhomes within a short commute of the base and EB.
- Add or highlight parking, laundry, reliable internet, and pet policies.
- Offer a split strategy: 12‑month leases for families plus a few furnished units for contractor demand.
- Price near BAH‑informed thresholds; add utility‑inclusive packages for furnished stays.
- Include compliant military early‑termination language and clear maintenance standards.
- Build outreach channels to base housing offices, corporate housing managers, and EB relocation.
- Track rent comps and monitor defense and regional employment updates.
Ready to compare options?
If you want a calm, data‑aware plan for your Groton or New London area rentals, we can help you align unit mix, pricing, and marketing with the tenant pipelines that matter most. Reach out to The Jodie Jordan Group to talk strategy for your portfolio. What is your property worth?
FAQs
Do military PCS moves create stable rental demand near Groton?
- Yes. PCS cycles bring recurring inflows of tenants and a reliable baseline. Turnover tends to spike around common move months, especially in summer.
Which unit sizes rent fastest close to the sub base and EB?
- 2–3 bedroom homes and townhomes often move quickly with families and professionals. Furnished 1‑bedrooms appeal to single service members and contractors.
Should you offer furnished rentals for contractor demand?
- Furnished units can command higher monthly rates and fill short‑term needs for contractors and temporary assignees, but they require more active management.
How should you price rentals relative to BAH in Groton?
- Treat BAH as a reference point or ceiling for many military tenants. Aligning rents with typical allowances can widen your applicant pool and reduce time on market.
Are there special legal considerations when leasing to service members?
- Yes. Federal protections allow lease termination upon active duty orders. Use clear, compliant clauses and follow Connecticut landlord‑tenant law throughout the process.
