The homes will be delivered by Lovell in three locations; Bulford, Larkhill and Ludgershall.
Features include a mix of three- to -four-bedroom homes, a number of bungalows and adapted houses for families with specific needs, such as wheelchair access.
Pre-construction work on the project is already underway, including off-site highways to facilitate access to the new homes. Completion is expected for May 2020.
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Defence Secretary Gavin Williamson said: "This considerable investment in nearly 1,000 new homes is a reflection of our commitment to supporting Armed Forces families. Service families make an immense contribution to our country and I'm delighted to announce this £250 million funding for new homes to welcome our troops relocating from Germany."
Defence Minister Tobias Ellwood added: "Investing not only in new homes but in all the things that help to make a place feel like home, such as education, infrastructure and leisure facilities, will make a big difference for those returning to the UK after being posted abroad. This boost to the area will provide a close-knit community for Armed Forces and their families for years to come."
(LM/MH)
