Ellsworth Air Force Base officials are hoping that the more than 200 base homes and duplexes that will be built over the next two years will reduce the wait time for housing for military families.
The $64 million project is about a mile east of the base in the former Black Hills and Rushmore estates neighborhoods in Box Elder.
Air Force officials say they are aware of an on-base housing shortage and the lack of rentals in Rapid City that are affordable with a military housing allowance.
Ellsworth has about 283 houses on base and the waiting list for those homes can fluctuate between five and 50 families.
The project is expected to be finished by July 2016.