Rising Costs, Rising Rates: 2024 Basic Allowance for Housing Update for Service Members

For active-duty service members in the United States, Basic Allowance for Housing (BAH) is a crucial financial lifeline.

This tax-free stipend helps offset the cost of living outside government-provided housing, ensuring military personnel and their families have access to safe and affordable living arrangements.

2024 BAH Rates: Reflecting Market Trends

The 2024 BAH rates, which took effect on January 1st, 2024, saw an average increase of 5.4 percent compared to 2023. This reflects the ongoing rise in housing costs across the country.

However, it’s important to note that the increase is unique. Different locations experience varying market trends, and the 2024 BAH rates reflect these regional differences.

Understanding BAH: Key Points

Purpose: BAH aims to cover 95 percent of the estimated average housing costs at a service member’s duty station, including utilities.

Factors Affecting Rate:

• Rank: Higher ranks typically receive higher BAH rates.
• Dependency Status: Service members with dependents (spouse or children) receive a higher BAH rate.
• Location: BAH rates vary significantly based on local housing costs.

Flexibility: Service members can choose where to live within their budget, allowing them to find housing that meets their individual needs and preferences.

Rate Protection: Once a service member receives a BAH rate, it remains the same even if rates in their location decrease.

You Might Also Want To Check Out: Understanding Service Member Basic Pay: A Guide to 2024 Military Compensation

Addressing Affordability Concerns

The Department of Defense (DoD) is committed to ensuring BAH rates keep pace with rising housing costs. In recent years, they’ve implemented several measures to address affordability concerns:

Regular Adjustments: BAH rates are typically adjusted annually in January to reflect changes in local housing markets.

Temporary Increases: In areas experiencing particularly rapid housing cost increases, the DoD has implemented temporary out-of-cycle BAH increases to provide immediate relief.

Larger Annual Adjustments: The 2023 BAH increase was the largest in 15 years, reflecting the DoD’s commitment to ensuring affordability for service members.

Calculating BAH

The DoD conducts a comprehensive survey of median rental costs for various housing types in each location. This includes one- and two-bedroom apartments, two- and three-bedroom townhomes, and two- and three-bedroom single-family homes.

The specific housing type used to calculate BAH for a service member depends on their rank and family size. For example, an E-4 (Specialist) with dependents at Fort Liberty (Bragg), North Carolina, receives $1,635.00 a month, while an E-4 without dependents stationed there gets $1,383.00.

You can get a personalized BAH rate for your desired location using the Department of Defense’s BAH calculator here.

Additional Considerations

It’s important to be aware of some additional nuances regarding BAH.

A separate allowance called the Overseas Housing Allowance (OHA) applies to service members stationed in US territories or overseas. This allowance is calculated differently based on local market conditions and helps offset housing expenses when living in privately leased housing in the local economy.

For dual-military couples without children, each spouse receives their own BAH rate based on their individual dependency status. If the couple has children, one spouse gets the BAH rate with dependents, while the other receives the rate without dependents.

Finally, remember that BAH rates vary significantly across the country. While the program aims to cover 95 percent of average housing costs, the actual amount can differ considerably depending on location.

For example, an E-1 (Private) with dependents stationed in Bangkok, Thailand, receives 136,742 THAI BAHT ($3,683.37)/month for OHA Rental Allowance, 25,266 THAI BAHT ($680.58)/month for Utility/Recurring Maintenance Allowance, and 23,715 THAI BAHT ($638.80)/month for Move-In-Housing Allowance (MIHA). Meanwhile, E-1 without dependents gets 123,067.80 THAI BAHT ($3,315.03)/month, 18,949.50 THAI BAHT ($510.44)/month, and 23,715 THAI BAHT ($638.80)/month, respectively.

To look up rates, use the OHA calculator here.

Resources for Service Members

DoD BAH Website: This website provides comprehensive information about BAH, including explanations of the program, detailed rate tables, and a user-friendly BAH calculator. Link: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/

Military OneSource: This resource offers financial counseling and assistance to service members and their families, including guidance on navigating housing options and utilizing BAH effectively. Link: https://www.militaryonesource.mil/

By understanding the BAH program and utilizing the available resources, service members and their families can navigate the complexities of the housing market and secure safe and affordable living arrangements, allowing them to focus on their service with peace of mind.