What changes were implemented in the BAH program in ? First, a legislative proposal was approved in the Fiscal Year National Defense Authorization Act that allows the Department to reintroduce a member cost-sharing element out-of-pocket amount , not to exceed one percent of national average housing costs by grade. Second, renter's insurance typically purchased to insure personal property was eliminated from the Basic Allowance for Housing rate computation. Has an out-of-pocket cost ever been used in the Basic Allowance for Housing program?
An out-of-pocket amount was incorporated early in the Basic Allowance for Housing program to limit Basic Allowance for Housing rates to a defined budget. How will the out of pocket impact service members? The actual impact of the changes to Basic Allowance for Housing computations will vary depending on a member's housing choices. Members who rent a median-priced property will have to pay a small amount above their Basic Allowance for Housing rate.
Members who choose to economize in their housing choices may have all their housing expenses covered by Basic Allowance for Housing. Some members, renting properties above the median price for the area, have already been paying some housing costs out of pocket. What impact will removal of renters insurance have on Basic Allowance for Housing rates? Members who obtain renter's insurance will now need to budget for this expense separately. Does rate protection apply with these changes?
This ensures 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. I looked up the current year BAH amount for my grade and zip code and it's less than I was getting last year. Am I going to lose money? BAH rate protection keeps an individual from having a reduction in BAH as long as the individual maintains uninterrupted eligibility see below for BAH.
This means an individual is authorized the 1 January rate for the individual's grade and location or the housing allowance being paid on 31 December of the previous year, whichever is larger. Can I ever lose rate protection? Three separate circumstances may lead to a change in your status that interrupts your eligibility for the allowance, and then, only if the published allowance for your grade and location is less than what you are getting now.
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.
Second, if you are demoted, your housing allowance reverts to the then-current published table of allowances for your lower grade. Promotions do not lower your housing allowance. Third, if your dependency status changes from with-dependent to without-dependent, or vice versa , your housing allowance is determined by your new dependency status and the then-current published table of allowances for your grade. If, in a given year, I lose rate protection, am I protected from further decreases in the following year s?
Does rate protection keep me from getting rate increases? If you are promoted, your BAH rate is the then-current published BAH for your new higher grade, with the following exception. If you get promoted, and are in a location where the current published BAH for your new grade is lower than the BAH amount you were receiving before, you continue to receive the higher BAH amount.
Will I see big changes in housing allowances on 1 January? Typically changes in housing allowances are modest. Allowances reflect the costs associated with household rental. Housing allowances typically change accordingly. I have some out-of-pocket expenses! You should also buy renters insurance if you live in the barracks. See below:. Posted In: Allowances. Ryan Guina is The Military Wallet's founder.
He is a writer, small business owner, and entrepreneur. Ryan started The Military Wallet in after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life. Ryan uses Personal Capital to track and manage his finances.
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Will I qualify as a dependent for BAH? Hello Claudia, Yes, you will qualify as a dependent while you are in an inactive status. When you are activated, you will both receive the single BAH rate, unless you have other dependents. If that is the case, then the higher ranking individual will receive the BAH with dependents rate and the lower ranking individual will receive the single BAH rate. Best wishes! A future soldier will be attending active duty Basic training in 3 weeks and have a mortgage, he is single and have no dependents, will he be authorized BAH or partial.
Servicemembers who are attending basic training and tech school only receive full BAH if they have dependents. If they have dependents, then they will receive BAH based on their home of residence or where their dependents are living. Otherwise, they will receive Partial BAH. However, Partial BAH is very small and will not be enough to cover a mortgage payment.
The recruit should speak with his recruiter prior to joining the military for more information about his benefits. It would also be a good idea to consider selling our renting out his home to ensure the payments are eliminated or taken care of while he is in the military.
Load More Comments. Departments of Defense or Veterans Affairs. A dependent under a medical treatment program who require a short delay to complete medical treatment or to continue to care for an immediate Family member. Must be enrolled in the EFMP, if applicable. Advance travel of dependent. A dependent that travels ahead of the Soldier to the new duty station and establishes a residence with a lease or mortgage agreement. RC Soldiers with dependents called to active duty.
RC Soldiers with dependents ordered to active duty for days or less and desire to receive BAH based on the primary residence at the time the order was issued. RC Soldiers without dependents called to active duty. RC Soldiers without dependents ordered to active duty for days or less for an OCONUS assignment, government quarters are not available, and desire to receive an overseas housing allowance based on the permanent duty station.
How do Soldiers apply? Soldiers are required to submit the following documents for consideration:. Memorandum or DA Form signed by the Soldier and commander, if applicable, requesting consideration of a waiver. What if Soldiers have questions on the housing allowance waiver program? A Service member with a permanent duty within the 50 United States, who is not furnished government housing, is eligible BAH, based on the Service member's dependency status at the permanent duty ZIP Code.
A Service member stationed overseas, including U. A Service member without dependents who is living in government quarters is entitled to a Partial BAH.
It also applies when a Service member is in transit from selected areas where no prior BAH rate exists such as overseas. BAH rates are computed using current median market rents and average local expenditures on utilities electricity, water, sewer and heating fuel in each local market area, and will fluctuate as those costs change.
Although BAH distinguishes between with-dependent and without-dependent, the with-dependent compensation is based on comparable civilians using average family size. If you have legal and physical custody of your children, then you are authorized BAH at the with-dependent rate if not assigned adequate family-type Government quarters.
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