The states where veteran homeownership and investment activity are growing fastest

Veterans Day is the best time to thank former military members for their service and recognize their accomplishments on and off the battlefield. Around 6% of all U.S. adults have either served or are currently serving in the military, and many have used VA loans to secure housing.

You might be wondering which states have attracted the most veteran homeowners over the past year and how they relate to broader housing trends. Below, PropertyReach shares a list of the 10 states where veteran homeownership is growing fastest, based on U.S. Census Bureau VA loan data, along with ways to identify investment properties to add to your portfolio.

Where Is Veteran Homeownership Growing Fastest?

The U.S. Census Bureau releases annual fiscal-year reports on VA loan activity by state. Below are the 10 states with the greatest increases in all types of VA loans from 2025 to 2026.

1. New Hampshire: +35%

The Granite State saw the biggest increase in VA loan approvals over the past year, from 1,872 to 2,532.

2. Utah (tie): +34.3%

Utah processed 5,893 VA loan applications in FY 2026 compared to 4,388 over the prior 12-month period.

3. Idaho (tie): +34.3%

Tied with Utah for second place is Idaho. It may come as little surprise that Idaho ranks near the top, seeing as it experienced the second-highest population growth in 2025.

4. Oregon: +30.4%

Oregon is another fast-growing western state where plenty of veterans have settled down over the past few years.

5. Massachusetts: +30.1%

Although the Bay State sees relatively few VA loan applications relative to its population, activity picked up between 2025 and 2026 (3,487 to 4,537).

6. South Dakota: +28.7%

The least-populous state on this list nevertheless has experienced a healthy boost in VA loans in FY 2026.

7. Montana: +28.4%

It seems plenty of veterans have sought wide-open spaces, as seen in Montana in recent years.

8. California: +28.2%

Although the nation’s most populous state only saw the fifth-most VA loan applications last year, it has seen a steady increase in activity.

9. Wyoming: +28%

The West continues to dominate the top 10 list, with Wyoming posting robust gains in VA loans.

10. Iowa: +27.5%

The lower cost of living in the Hawkeye State remains one of its top draws; the average loan amount in the last fiscal year totaled $297,364, the lowest average across all states.

States with the Highest Percentage of Veteran Residents

Prospective homeowners consider numerous factors before deciding where to settle down: cost of living, employment opportunities, and recreational opportunities all typically rank highly. Furthermore, veterans often buy houses in states that offer strong benefits for retired military personnel. For instance, Virginia, Florida, and Texas waive 100% of property taxes for disabled veterans.

Alaska, with its multiple military bases and strong enlistment figures, has the highest concentration of veterans relative to the total adult population; 10% of Alaskans have achieved veteran status. Virginia ranks second at 9%; the massive military presence in the Hampton Roads area, which includes Naval Station Norfolk, leads to many veterans putting down roots there.

Six states have veteran populations of 8%: Hawaii, Maine, Montana, Oklahoma, South Carolina, and Wyoming. The remaining 48 states have veteran populations of seven percent or lower.

Can Veterans Use VA Loans to Purchase Investment Properties?

Generally, VA loans are for primary residences only and cannot be used to purchase properties solely for investment purposes. While plenty of veterans do branch out into home investing after purchasing their homestead, they’re limited to conventional loans.

However, the VA does offer loans to purchase multi-family housing. In a practice called house hacking, a veteran occupies one unit as their primary residence and rents out the others. VA loans are limited to duplexes, triplexes, and quadplexes that meet Minimum Property Requirements.

How Can Veterans Identify Promising Investment Properties?

Finding a good VA-loan investment property involves more than just tracking down a duplex or triplex. It requires a comprehensive look at the surrounding neighborhood, town, and metropolitan area.

If you’re on the hunt for a profitable residential property, it’s wise to consider:

Employment figures. People need steady and healthy wages in order to afford today's median rent. Invest in an area with a strong job market and reliable industries.
Recent appreciation (or depreciation). The cheapest residential units might not offer the best return if people simply aren't eager to move in. An affordable property with high regional demand is your best bet.
Property tax burdens. These annual expenses represent the highest costs for many real estate investors, and you'll need to know what you're getting into before closing on a property.
Crime rates. Rises and falls in the median rent in any given area are lagging indicators of the local crime rate. Many investors zero in on neighborhoods where crime has been steadily falling for several years or more.
Home improvement needs and costs. Investors often romanticize homes that need a ton of work before they're fit to rent or sell as their "labors of love" or "diamonds in the rough." If you're confident you can keep expenses low, you may be tempted to seek out such a property, but supply and labor costs can make home improvement projects prohibitively expensive.
Off-market purchases. The best way to avoid a bidding war on an enticing investment property is to make contact with the seller before the competition does. By negotiating an off-market purchase, you can keep closing costs low and streamline the buying process.

Online property search tools help you identify solid investment opportunities and move before the competition. County clerk and recorder offices usually offer a wealth of information on residential properties, as do GIS (Geographic Information Systems) databases.

Solid Investing Starts with the Right Research

Successful real estate investors hardly ever stumble into a profitable property. They make purchasing decisions after conducting careful, methodical, and exhaustive online research on reputable databases. Despite the restrictions on VA loans for investment properties, enterprising veterans find ways to navigate the housing market and make good money.

This story was produced by PropertyReach and reviewed and distributed by Stacker.