Total housing costs reflect median market rents and average utility fees. Image: Kate Scott/Shutterstock.com
Basic Allowance for Housing (BAH) rates will rise an average of 5.4 percent as of Jan. 1. The amount of the increase a service member could get would depend upon the cost of living in the area in which he or she resides.
Rates for BAH are based on geographic market conditions. The Defense Department calculates them after collecting rental costs for 299 stateside housing areas.
They also hinge upon data provided by the U.S. Census Bureau, the Consumer Price Index as set by the Bureau of Labor Statistics, databases that provide commercial subscription rental costs, online rental listing websites, input from the individual armed services and military housing offices, and other accurate and reliable sources.
Total housing costs reflect median market rents and average utility fees. Six housing profiles that differ by housing profile and number of bedrooms also are factored into the calculation, as are pay grade and the number of dependents.
An integral part of the Basic Allowance for Housing program is the provision of individual rate protection to all members. No matter what happens to measured housing costs — including the out-of-pocket expense adjustment — an individual member who maintains uninterrupted Basic Allowance for Housing eligibility in a given location will not see his/her Basic Allowance for Housing rate decrease. This ensures that 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. – DoD
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