More than 300 houses are to be built for soldiers returning to Stafford from Germany.
The Ministry of Defence has awarded a £51m contract for the properties at Beacon Barracks which should be built by summer 2015.
The contract follows plans to develop the town into one of the Army's seven major areas for personnel.
A £100m contract to carry out a major redevelopment of the barracks was announced in October.
In the summer of next year troops from 16 Signal Regiment and 1 Armoured Division Signal Regiment are due to move to Beacon Barracks, allowing for the closure of Rhine Garrison by the following March.
Defence Minister Andrew Murrison said: "This significant investment in Stafford further demonstrates that we are determined to provide the best possible accommodation for our soldiers and their families.
"Bringing troops back from Germany will save more than £350m a year in running costs."
The homes contract has been awarded to Lovell Partnerships Ltd by the Defence Infrastructure Organisation, which manages and maintains land and property for the Ministry of Defence.
The investment is in addition to the £1.8bn announced last March by Defence Secretary Philip Hammond for the Army Rebasing Plan, which will see 15,000 personnel return to the UK from Germany by 2020.
Under the plan, Stafford will become one of seven major Army areas along with Salisbury Plain, Edinburgh and Leuchars in Scotland, Catterick in North Yorkshire, Aldershot, Colchester and the East Midlands.