OHA - Overseas housing allowance
Payments
The Overseas Housing Allowance (OHA) is paid to approximately 44,000 uniformed members at 430 locations overseas involving a current annual expenditure $519 million, with an average annual payment per recipient of $11,800, according for Department of Defense figures.
How OHA is calculated
OHA compensates members for the majority of housing expenses. Comprised of three components:
- Rental ceiling
- Utility/recurring maintenance allowance
- Move-in housing allowance (MIHA).
Rental ceilings
Rental ceilings are computed using actual rents as reported through finance centers with the rental ceiling set such that 80 percentile of members with dependents have rents fully reimbursed. Unaccompanied members or members without dependents entitled to 90% of with dependent rate. 80% of total OHA payments.
Utility/recurring maintenance allowance
Utility/recurring maintenance allowance is paid monthly to defray expenses paid directly to utility companies. Payments fully cover the reported utility expenses for 80 percent of the members, based on expenses reported to PDTATAC by members receiving the allowance. 18% of total OHA payments.
MIHA
Move-in housing allowance is comprised of three components: MIHA/Miscellaneous, MIHA/Rent, and MIHA/Security.
- Miscellaneous - a fixed-rate, lump-sum payment that reflects average expenditures to make dwellings habitable (e.g., supplemental heating equipment, wardrobes). 2% of total OHA payments.
- Rent - an actual dollar-for- dollar payment made in the field for customary or legally required rent-related expenses, such as rental agents' fees. Fixed, one-time non-refundable charges.
- Security - an actual expense component paid for security-related enhancements to physical dwelling when quarters must be modified to minimize exposure to terrorist or criminal threat.
Updates to OHA payments
Allowances are periodically updated based on new cost data and review of currency fluctuations. Rental ceilings normally reviewed and adjusted every six months but can be adjusted as frequently as every three months. Utility/recurring maintenance allowance rates are updated annually through a survey provided to individual members that receive the allowance. MIHA/Miscellaneous is updated once every three years through a survey provided to individual members overseas that receive OHA.
Currency fluctuations
Allowances are paid in U.S. dollars but rent, utilities, and move-in items are typically paid in local currency with the aim of maintaining purchasing power in local currency over time.
Exchange rates are collected daily and the allowance exchange rate is compared to the actual trading rate available to members. Differences are accumulated until the 5% threshold is reached.
Additional info
The Department of Defense website on Overseas Housing Allowance (OHA) is here.