BAH or Basic Allowance for Housing Rates are determined by:
- Location
- Pay grade
- Dependency status – with or without dependents
What forms are needed to start Bah?
Jan 06, 2022 · To put it simply, BAH rates are determined by three components sourced from experts and statistical data: Median current market rent (BAH is based on rental properties, not home ownership costs) Average utilities (including electricity, heat, and water/sewer) Average renter’s insurance. Then How much does an E4 make in the army? Rank • Jan 30, 2019
Is BAH paid twice a month?
Nov 11, 2021 · BAH is designed to cover a portion of the housing costs, including both rent and utilities in the area. It does not consider mortgage pay ments or family size. It is based upon a table of how much...
What basic allowance for Housing BAH rate is for?
How is bah determined? According to DTMO, Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status. To calculate BAH rates, the DTMO does the following: Determines the total housing costs (median rent + average utilities) for each MHA for all the anchor points.
Do you get Bah in the guard?
BAH rates are calculated by taking into account the housing costs in the market you’re stationed in, as well as your pay grade and dependency status. Because these factors often change, your BAH may change as well. Generally speaking, higher-ranking military personnel and those with more years of service will have higher BAH payments.
Is BAH based on where you are stationed?
The policy decision to use duty location as a basis for BAH is based on the desire to compensate members for the typical housing cost near the member's duty location. Once the duty station is known, the BAH compensation is fixed, regardless of where the member lives.
Is BAH based on spouse location?
In general, the amount of BAH you receive depends on your location, pay grade, and whether you have dependents. Under most circumstances, you receive BAH for the location where you are assigned, not where you live.
Is BAH supposed to cover 100%?
The short answer is no. BAH should cover about 95% of a service member's housing expenses (to include rent and utilities), with about 5% being an incorporated out-of-pocket expense.Dec 16, 2020
Why is my BAH so low?
First, and most common, a decrease occurs when you PCS to a location at which the housing cost is less than at your current duty station. At the new duty station you get a lower housing allowance, but you should be no worse off, because the allowance is driven by the housing costs there.
How much BAH is a military spouse entitled to?
If the member has just one family member, a spouse, that spouse is entitled to 1/1 of the BAH, i.e. all of it. If the member has two children and a spouse, each member is entitled to 1/3 of the BAH.
How soon do you get BAH after marriage?
If you get married before joining the military, this tax-free housing allowance begins on the very first day of active duty (the first day of basic training). If one waits until after joining the military to get married, the housing allowance becomes effective on the date of the marriage.
How Does BAH work USMC?
Basic Allowance Housing( BAH) Every Marine is permitted to receive free on-base living. Those who are allowed to live off base, will be compensated with a monthly housing allowance. The VA offers loan assistance for buying and purchasing a home both active and after service.
Do I get BAH while in basic training?
For basic training or technical school/AIT/A-School, you will receive the BAH amount for the location where your dependents are residing. However, if you are not married or divorced and are paying child support, you do not receive full-rate BAH while living in the barracks.Sep 12, 2019
What percentage does BAH cover?
BAH is designed to cover 95% of a service member's housing costs. Changes to the BAH rules over time have had the coverage a low as 80% and as high as 100% BAH coverage.
Will 2022 BAH rates increase?
As expected, the rates in many of the 56 areas that became eligible Oct. 1 for extra BAH will be substantially higher than the overall 5.1% increase. Their 2022 increases in those areas range from 6.1% to 21.1%.Dec 22, 2021
Will BAH be increased?
The temporary BAH rate increases are effective as of October 1, 2021 and will expire on December 31, 2021. These temporary rates will be replaced by the regular 2022 BAH rates using standard, annual rate-setting procedures. The 2022 rates will go into effect on January 1, 2022.Sep 30, 2021
Why is BAH decreasing 2022?
The Pentagon announced the 2022 BAH rates Wednesday, giving many service members more money to cover the cost of their housing next year.Dec 15, 2021
How often are BAH rates updated?
BAH rates are updated annually based on housing costs. If rents and home prices change in a particular market, BAH rates will follow suit on...
What if my BAH rate went down this year?
Your BAH payment can decline if you’re moved to a lower pay grade or your dependency status changes. For example, your BAH would decline if...
Can you count BAH as income for VA loan applications?
Yes, lenders recognize and count BAH as a source of income, and you can use your BAH as income when applying for a VA loan. How far that BAH...
What BAH Is Designed To Cover
BAH is designed to cover a portion of the housing costs, including both rent and utilities in the area. It does not consider mortgage pay ments or family size. It is based upon a table of how much housing is required by a typical service member of a particular paygrade.
Collecting the Cost Information
BAH rate calculations include two parts: rental housing costs and utility costs.
Rental Housing Costs
The Department of Defense hires a contractor to survey approximately 400 rental markets each year. The contractor is looking for median rents, utilities for six different types of properties:
Making Sure That The Data Is Right
In order to verify all of its rental cost data, the survey includes information about actual, available rental units, and also includes input from area real estate professionals, the installation housing office, and the installation leadership.
Utility Costs
Information on utility costs is obtained by using rates from the local utility provider, consumption information from the annual American Housing Survey (AHS) performed by the Bureau of the Census and climatic information from the National Oceanographic and Atmospheric Administration (NOAA).
Calculating the BAH Rates
Once they've figured out median rents and average utility costs for each location, then there is the calculation of the BAH rates. There are 39 different BAH rates used for each specific geographic area. That's a lot of numbers.
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About Basic Allowance for Housing
Military members not living in government-owned housing are given a Basic Allowance for Housing. This monthly payment is meant to cover the costs of off-base, private housing, whether it’s rented or purchased.
How BAH is Calculated
BAH rates are calculated by taking into account the housing costs in the market you’re stationed in, as well as your pay grade and dependency status. Because these factors often change, your BAH may change as well.
How often are BAH rates updated?
BAH rates are updated annually based on housing costs. If rents and home prices change in a particular market, BAH rates will follow suit on January 1st of the next year. If your pay grade or dependency status changes, your BAH will update immediately, and your BAH payment will reflect your new status the following month.
What if my BAH rate went down this year?
Your BAH payment can decline if you’re moved to a lower pay grade or your dependency status changes. For example, your BAH would decline if you no longer had a dependent child in your household.
Can you count BAH as income for VA loan applications?
Yes, lenders recognize and count BAH as a source of income, and you can use your BAH as income when applying for a VA loan. How far that BAH goes will depend on the price of the home you choose.
BAH Rules for Military Couples (Dual Military)
If you and your partner are both military members, BAH is a little confusing. Generally speaking, military couples will each get their own BAH — even once married. When dependents enter the picture, however, it gets more nuanced.
Using the BAH Calculator for MHA
Though it’s similar to a BAH, payments under the GI Bill are called Monthly Housing Allowances, or MHAs. If you’re a Veteran, reservist, National Guard member, or a military spouse or child using the GI Bill, you’re eligible for funds to offset your housing costs, too.
How to calculate BAH?
To calculate BAH rates, the DTMO does the following: 1 Determines the total housing costs (median rent + average utilities) for each MHA for all the anchor points. 2 Calculates (using the Housing Standards table above) a separate BAH rate for each of twenty-seven distinct pay grades that correspond to military ranks for members with and without dependents.
What is the purpose of BAH?
The purpose of BAH is to provide a housing allowance for service members when military housing is not available or is otherwise not provided.
What is BAH in the military?
Basic Allowance for Housing (BAH) is one of the most valuable military benefits. The purpose of BAH is to provide a housing allowance for service members when military housing is not available or is otherwise not provided. BAH Rates are based on several factors including geographic duty location, pay grade, and dependency status. The rates…. ...
What is a BAH II?
BAH II is a fixed rate based on the national average for housing and does not vary by location. BAH-DIFF – BAH-DIFF is the housing allowance amount for a member who is assigned to single-type quarters and who is authorized a basic allowance for housing solely by reason of the member’s payment of child support.
When is BAH rate published?
Service members are entitled to the BAH rates published 1 January or the amount of housing allowance they received on 31 December, whichever is larger. Rate protection continues unless the status of a service member changes due to: Permanent Change of Station (PCS) Reduction in pay grade.
Does BAH cover off base living expenses?
Contrary to popular belief, BAH was not originally intended to cover 100% of off-base living expenses. At one point it was only calculated to cover 80% of off-base living expenses, leaving service members to foot the remaining 20% of the cost themselves.
Can you get full BAH if you are in training?
Those who are in training and do not have dependents are not eligible for full BAH.
What is a BAH diff?
BAH-DIFF is the housing allowance amount for a member who is assigned to single-type quarters and who is authorized a BAH solely by reason of the member's payment of child support . A member is not authorized BAH-DIFF if the monthly rate of that child support is less than the BAH-DIFF amount. The BAH-DIFF amounts, originally calculated in 1997, are ...
Why is BAH not used in the calculation?
A homeowner's monthly mortgage payment is not used in the computation because the monthly cash outlay of a homeowner is not a good indicator of the economic costs of home ownership.
What is BAH in Hawaii?
A member assigned to permanent duty within the 50 United States, who is not furnished Gov't housing, is eligible for BAH, based on the member's rank, dependency status, and permanent duty station zip code. A member stationed overseas (except in Hawaii and Alaska), including U.S. territories and possessions, who is not furnished Gov't housing, ...
What is RMC in military?
A military member should not be put into a situation in which a spouse is required to work, so in considering the military, the Regular Military Compensation (RMC) is used. RMC equals the sum of military basic pay, BAH, BAS, and the tax advantage of the untaxed allowances. 24.
When does a spouse get a BAH?
When the former spouses share legal and physical custody of the child, each parent is authorized BAH at the with-dependent rate during the period the child is actually in the parent's physical custody. Both parents may not receive a housing allowance for the child during the same period.
Is BAH cost effective?
This is because BAH rates must be available should a member ever establish eligibility in that location. It is not cost effective to collect rental data for all such locations.
Do you get a lower housing allowance at duty station?
At the new duty station you get a lower housing allowance, but you should be no worse off , because the allowance is driven by the housing costs there. Second, if you are demoted, your housing allowance reverts to the then-current published table of allowances for your lower grade.
Navigating BAH Fluctuations
Who likes to budget? Some enjoy the art of creating a solid financial plan, while others avoid it like the plague (you know who you are). While our finances need constant tending, military families completely rework their budgets every PCS move. Can you guess why? BAH.
Tips for Living Within Your BAH
The bottom line? Your Basic Housing Allowance isn’t your budget. You create your budget. So, how far do you want your BAH to stretch? Do you want your BAH to only cover rent/mortgage or include all cost of living expenses like utilities, gas, and maybe even groceries?
