Date of Award


Document Type


Degree Name

Master of Science


Department of Systems Engineering and Management

First Advisor

James R. Aldrich, PhD


The United States Military is faced with the decision of how to house its military members and their families. The three options available to house these families are: 1) utilize existing on-base housing; 2) build new on-base housing; or, 3) compensate a military family monetarily to find housing off-base. This research focused on the development of a tool to all the decision maker in determining what combination of the three options is economically optimal for an individual Air Force Installation. The model developed incorporates the costs associated to the local area and conditions at the specific installation to determine the cost associated with each of the three housing options. Current Air Force Policy is to house military families Off-Base once all existing housing On-Base is occupied. Only if the local community cannot meet the housing requirements of the Air Force Installation will funds be appropriated to build new housing. This current policy forces housing decisions to be made without the benefit of understanding the economically optimal combination. The model developed identifies this optimal combination to the user, as well as the savings to Installation if it is used. By changing the input into the model, any Air Force Installation could identify the economically optimal housing strategy. Performing sensitivity analysis on the variables used in the decision process will display the effect of any changes in the value of the input variables. Overall, the model provides a decision tool that can be used to make better informed decisions and can be easily manipulated to produce the economically optimal combination of housing for any Air Force Installation.

AFIT Designator


DTIC Accession Number