by SN Bynoe

Created on: February 07, 2010

How To Calculate  Military  Housing Allowance

  BAH  ( Basic Allowance for Housing) is a perk that is available to soldiers  upon enlistment.  Instead of having to pay steep prices for off- post  housing , an individual receives an additional  stipend that covers residential accommodations.  There are three factors to consider when thinking about how much  a soldier receives in housing allowance.

        1) Rank-  Rank does affect  how much a person receives in  Housing Allowance. Put frankly, when a soldier shows leadership, and climbs up the ladder his incentives rise as well.  Alternatively, if an individual is careless in his or her actions , that person can be bumped down to a lower pay grade. When rank decreases so does the BAH, so be careful.  The worst possible situation is going from a upscale home to a caddy shack.  

       2)  Location of your station- Location influences how much  housing allowance you will be granted and  varies from state to state.  The figure that a soldier is given is calculated based on how much the average person pays to lease  or purchase  an estate.  I have found that some people get upset because once they transfer to another duty station the rate changes and it reflects on their L.E.S. However if a person carefully reflects on the differences between the cost of living he or she will realize that there isn’t any reason to be upset.  Just consider the how much rent  is in New York  as opposed to Georgia. It is nearly double  the price!  

            3) Dependents-  Dependents also determine what a soldier receives. To have dependents means to assume responsibility for family members other than yourself.  So, the size of a household is computed in along with rank and location to come up with a figure that is administered on a monthly basis.

             Typically BAH rates are locked in . They can either stay the same or increase within the year. When this occurs, military personnel are generally notified of the change and it reflects on their  payment statement. This year there was a raise in housing allowance so if you are a soldier make sure that you speak to someone from your unit or finance department.  More is better so get what you deserve!

BAH charts for  can be found on:

http://www.military.com/benefits/military-pay/basic- allowance-for-housing-rates

http://militarypay.defense.gov/pay/bah/

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