BAH - Basic Allowance for Housing
Changes in '09
The 2009 basic allowance for housing (BAH) rates for U.S. service men and women are up 6.9 percent over 2008 rates, according for figures published by the Department of Defense. In total, the planned increase in housing allowance funds for 2008 is about $700 million above the 2007 amount.
Changes in '08
The 2008 basic allowance for housing (BAH) rates for U.S. service men and women are up 7.3 percent overall from 2007, according for figures published by the Department of Defense. In total, the planned increase in housing allowance funds for 2008 is about $600 million above the 2007 amount.
How the BAH is calculated
Three components are included in the BAH computation:
- Median current market rent
- Average utilities (including electricity, heat, and water/sewer)
- Average renter's insurance
Total housing costs are calculated for six housing profiles (based on dwelling type and number of bedrooms) in each of the military housing areas. BAH rates are then calculated for each pay grade, both with and without dependents. An estimated $17.5 billion will be paid to over 1,200,000 service members in 2008.
For members with dependents, average increases in the BAH in 2008 are approximately $83 per month. A typical E-4 with dependents, for example, will find their BAH about $63 per month higher than last year, while an E-8 with dependents will receive about $79 more than last year.
Individual rate protection
An integral part of the BAH program is the provision of individual rate protection to all members. No matter what happens to measured housing costs, an individual member in a given location will never see his/her BAH rate decrease. This assures that members who have made long-term commitments in the form of a lease or contract are not penalized if the area's housing costs decrease.
According to the Department of Defense, the intent of BAH is to provide uniformed service members with accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided. The BAH system went into effect for the first time on January 1, 2000, and most pay grades, at most locations, were entitled to increased housing allowances.
In areas where the published BAH for a grade is lower than last year, individuals will continue to receive the higher amount, indefinitely, until an interruption in eligibility, defined as a PCS move or change in dependency status.
Additional info
The Department of Defense website on Basic Allowance for Housing (BAH) is here.
The Department of Defense's Primer on Basic Allowance for Housing (BAH) is available here.