The new BAH rates for 2014 have been released! Most service members will see an increase by an average of five percent. It will depend on your specific location but the average increase will be around $80 for monthly housing allowance. This is the biggest increase the Military has seen in the last five years.
For those who are new to the military world, Basic Housing Allowance for Housing (BAH) is a portion of the service member’s pay. It reflects the market the service member is stationed at to cover all housing expenses. There are many factors that they use to come up with these rates including rental housing costs, utility costs and renter’s insurance costs. Rates are also determined by rank and if the service member has dependents or not. They review these rates each year and make the adjustments as needed.
For 2014, the largest increases are for those service members stationed in Hawaii. Their rates are up by about 15 percent from the 2013 rate. The biggest decreases will be in areas where the housing market is still on the downward slope.
But don’t worry if you saw your BAH rate go down for 2014. Under the Pentagon’s rate protection policy, members who are already assigned to a location will not lose any money on housing allowance.They will receive the same BAH rate they were given when assigned to that location. This is ensure you are not penalized for any long-term commitments made with a lease or contact.
If your BAH rate is set to increase in 2014 it will be effective January 1st, regardless of how long you have been assigned to that location.
Check your 2014 BAH rates here!