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U.S. Military Mobile
Military Basic Allowance for Housing Rates Drop in 2011
Army News Service>> In WASHINGTON (Dec. 15, 2010) -- Most military housing allowance rates will decrease slightly for 2011, but service
members will receive, on average, as much or slightly more money than they did this year, Defense Department officials said today.
Cheryl Anne Woehr, housing allowance program analyst, said overall rates are fairly stable. "On average, they'll decrease about six tenths of a
percent," she said. How much BAH will you get in 2011? BAH Rate Calculator >>
The 2011 Basic Allowance for Housing rates take effect Jan. 1. A provision ensuring against rate decreases for service members already
stationed at a location means Soldiers, Sailors, Airmen and Marines will receive an average 1.1 percent increase, Woehr said. That overall
increase is "because of the effects of individual rate protection and the distribution of service members throughout the [United States]," she
explained.
Individual rate protection ensures that members who have made lease or contract commitments for housing aren't penalized if an area's costs
decline. Any decreases apply only to members who move to a location after rates change. Even if housing allowance rates decrease over two or
more years, military members stationed in the same location are assured their previous, higher rate, Woehr said.
"They receive the higher of what they were paid Dec. 31, or the new rate," she said. "If the rates go down one year, the servicemember receives
the previous year's rate. If the rates go down again, the servicemember would continue to get that year-one rate."
The allowance covers housing costs for servicemembers living off military installations in the United States. Those who live in government
housing don't receive the allowance. Servicemembers stationed overseas who live in private housing receive the overseas housing allowance.
Rates for that allowance are reviewed at least every six months, defense finance officials said.
"The reality is, the [basic allowance for housing] rates vary and the changes in the rates vary across the country, with some housing areas
decreasing as much as eight percent and others increasing more than 10 percent," Woehr said. "Rent is the largest component of the BAH
rates, so that has the most influence on what rates do."
The allowance rate is computed annually for each military housing area and is based on three factors: median current market rent; average
utilities, including water and sewer, electricity and heating costs; and average renter's insurance.
Total costs are assessed for six housing profiles, based on dwelling type and number of bedrooms, in each military housing area. Housing
allowance rates are then determined for servicemembers in each pay grade, with and without dependent family members. The department will
pay its more than 1 million Active Duty servicemembers an estimated $19 billion in housing allowance over 2011.
Jeri Busch, director of military compensation, said servicemembers also will see an increase in pay and subsistence allowances in January.
Unless modified by Congress, a 1.4 percent basic pay raise takes effect Jan. 1, by operation of law, and reflects the change in the employment
cost index, she said.
The basic allowance for subsistence in 2011 will increase 0.36 percent, Busch said. The new rates will be $223.04 for officers and $323.87 for
enlisted servicemembers.
Since 2002, defense officials said, military pay has risen 42 percent, housing allowances have risen 83 percent, and the subsistence allowance
has risen 40 percent. By comparison, private-sector salaries have risen 32 percent over that time, officials said.
Army News Service>> In WASHINGTON (Dec. 15, 2010) -- Most military housing allowance rates will decrease slightly for 2011, but service
members will receive, on average, as much or slightly more money than they did this year, Defense Department officials said today.
Cheryl Anne Woehr, housing allowance program analyst, said overall rates are fairly stable. "On average, they'll decrease about six tenths of a
percent," she said. How much BAH will you get in 2011? BAH Rate Calculator >>
The 2011 Basic Allowance for Housing rates take effect Jan. 1. A provision ensuring against rate decreases for service members already
stationed at a location means Soldiers, Sailors, Airmen and Marines will receive an average 1.1 percent increase, Woehr said. That overall
increase is "because of the effects of individual rate protection and the distribution of service members throughout the [United States]," she
explained.
Individual rate protection ensures that members who have made lease or contract commitments for housing aren't penalized if an area's costs
decline. Any decreases apply only to members who move to a location after rates change. Even if housing allowance rates decrease over two or
more years, military members stationed in the same location are assured their previous, higher rate, Woehr said.
"They receive the higher of what they were paid Dec. 31, or the new rate," she said. "If the rates go down one year, the servicemember receives
the previous year's rate. If the rates go down again, the servicemember would continue to get that year-one rate."
The allowance covers housing costs for servicemembers living off military installations in the United States. Those who live in government
housing don't receive the allowance. Servicemembers stationed overseas who live in private housing receive the overseas housing allowance.
Rates for that allowance are reviewed at least every six months, defense finance officials said.
"The reality is, the [basic allowance for housing] rates vary and the changes in the rates vary across the country, with some housing areas
decreasing as much as eight percent and others increasing more than 10 percent," Woehr said. "Rent is the largest component of the BAH
rates, so that has the most influence on what rates do."
The allowance rate is computed annually for each military housing area and is based on three factors: median current market rent; average
utilities, including water and sewer, electricity and heating costs; and average renter's insurance.
Total costs are assessed for six housing profiles, based on dwelling type and number of bedrooms, in each military housing area. Housing
allowance rates are then determined for servicemembers in each pay grade, with and without dependent family members. The department will
pay its more than 1 million Active Duty servicemembers an estimated $19 billion in housing allowance over 2011.
Jeri Busch, director of military compensation, said servicemembers also will see an increase in pay and subsistence allowances in January.
Unless modified by Congress, a 1.4 percent basic pay raise takes effect Jan. 1, by operation of law, and reflects the change in the employment
cost index, she said.
The basic allowance for subsistence in 2011 will increase 0.36 percent, Busch said. The new rates will be $223.04 for officers and $323.87 for
enlisted servicemembers.
Since 2002, defense officials said, military pay has risen 42 percent, housing allowances have risen 83 percent, and the subsistence allowance
has risen 40 percent. By comparison, private-sector salaries have risen 32 percent over that time, officials said.
Make Extra Money While on Active Duty
If you are strapped for cash then you might need to
get an off duty job to help with all of those nasty bills.
There are a number of easy ways to get part time
job close to post.
Types of Off-duty employment >>
If you are strapped for cash then you might need to
get an off duty job to help with all of those nasty bills.
There are a number of easy ways to get part time
job close to post.
Types of Off-duty employment >>