I set up a local realm for testing without a DNS server. Kerberos server is of the MIT type on another box. Addresses in /etc/hosts are set up so that the kerberos server can be pinged without DNS lookups. MIT kinit from a Linux box works fine. Running kinit on a FreeBSD box starts looking for the KDC via DNS, disregarding /etc/krb5.conf, disregarding /etc/hosts, and obviously fails.
hosts: files dns
dns_lookup_kdc = false
dns_lookup_realm = false
rdns = false
Adding dns_fallback = false did not help either