Published: Saturday, December 17, 2011
Military will increase housing payments
Basic Allowance for Housing paid to a million service members living off base in stateside areas will rise an average of 2 percent on Jan. 1.
The allowance for a typical enlisted member, in pay grade E-6 with dependents, will increase by an average of about $35 a month. For a typical officer, who is married in a pay grade of O-3, it will climb by about $40 a month.
Actual housing rates for individuals, as well as the size of increases for 2012, will vary widely, determined by changes in local rents, a member's rank or pay grade, and dependency status. Those who are married or have children will draw the higher "with dependents" rate in all housing areas.
The allowance will jump an average of 41 percent, to $2,040 a month, for members with families in Minot, N.D. The largest average rate will be found in San Francisco, $3,147 a month for all pay grades with dependents. More typical is an average of $1,422 for married members in El Paso, Texas.
Again in 2012 many housing allowance recipients won't see any because rental costs in their area fell over the past year. Rents dropped in 35 percent of the military's housing areas, said Cheryl Anne Woehr, program manager for the Defense Department. But thanks to a "rate protection" feature, only members who arrive after Dec. 31 in areas where rents dropped will feel the effects of lowered allowances. The law shields other members from any cut in their tax-free housing payments.
"As long as they stay at the same duty station, have the same dependency status and are not demoted, they will keep the previous year BAH rate if that is the higher one," Woehr said. "We do that because those service members already have housing commitments in their area that were based on the market at the time they made that commitment."
Since 2008, the allowance without dependents has benefitted from an artificial floor. These single member rates must match at least 75 percent of the local "with dependents" rate at the same pay grade.
Housing areas that will see larger percentage jumps include: Washington, D.C. (9.9 percent); Fort Bragg/Pope Air Force Base, N.C. (9.6 percent); Morehead/Cherry Point Marine Corps Air Station, N.C. (9.5 percent) and Fort Campbell, Ky. (8.6 percent).
Areas where the basic housing allowance will fall significantly include: Barstow/Fort Irwin, Calif. (-8.5 percent); Wichita Falls/Sheppard Air Force Base, Texas (-7.5 percent); Holloman AFB/Alamogordo, N.M. (-5.7 percent) and Beale AFB, Calif. (-5.2 percent). Individual rates for 2012 can be found online at: www.defensetravel.dod.mil/site/bahCalc.cfm.
Also rising Jan. 1 will be military basic pay, by 1.6 percent, and basic allowance for subsistence by 7.2 percent to match the increase in food prices during fiscal 2011 as measured by a Department of Agriculture food cost index. Subsistence for enlisted will increase from $325.04 a month to $348.44.
Service members living off base overseas get an Overseas Housing Allowance based on what members actually pay in rent. It gets adjusted as the dollar's value shifts against local currency.
Veterans using the GI bill get a monthly living stipend equal to the basic housing allowance in their area for an E-5 without dependents. Veterans Affairs will use new rates to adjust the stipend next August before the start of the new academic year, said Keith Wilson, director of VA education services.
By law, stateside housing allowances "have to be based on the cost of housing for civilians with comparable incomes in the local area," Woehr explained. Rates are set to cover 100 percent of median rental cost, utilities and rental insurance in each area based on the type of housing officials deem appropriate to a member's pay grade and dependent status.
Housing payments will total $20 billion in 2012, up from $19 billion last year, Woehr said.
To comment, email milupdate@aol.com, write to Military Update, P.O. Box 231111, Centreville, VA, 20120-1111 or visit: www.militaryupdate.com.
The allowance for a typical enlisted member, in pay grade E-6 with dependents, will increase by an average of about $35 a month. For a typical officer, who is married in a pay grade of O-3, it will climb by about $40 a month.
Actual housing rates for individuals, as well as the size of increases for 2012, will vary widely, determined by changes in local rents, a member's rank or pay grade, and dependency status. Those who are married or have children will draw the higher "with dependents" rate in all housing areas.
The allowance will jump an average of 41 percent, to $2,040 a month, for members with families in Minot, N.D. The largest average rate will be found in San Francisco, $3,147 a month for all pay grades with dependents. More typical is an average of $1,422 for married members in El Paso, Texas.
Again in 2012 many housing allowance recipients won't see any because rental costs in their area fell over the past year. Rents dropped in 35 percent of the military's housing areas, said Cheryl Anne Woehr, program manager for the Defense Department. But thanks to a "rate protection" feature, only members who arrive after Dec. 31 in areas where rents dropped will feel the effects of lowered allowances. The law shields other members from any cut in their tax-free housing payments.
"As long as they stay at the same duty station, have the same dependency status and are not demoted, they will keep the previous year BAH rate if that is the higher one," Woehr said. "We do that because those service members already have housing commitments in their area that were based on the market at the time they made that commitment."
Since 2008, the allowance without dependents has benefitted from an artificial floor. These single member rates must match at least 75 percent of the local "with dependents" rate at the same pay grade.
Housing areas that will see larger percentage jumps include: Washington, D.C. (9.9 percent); Fort Bragg/Pope Air Force Base, N.C. (9.6 percent); Morehead/Cherry Point Marine Corps Air Station, N.C. (9.5 percent) and Fort Campbell, Ky. (8.6 percent).
Areas where the basic housing allowance will fall significantly include: Barstow/Fort Irwin, Calif. (-8.5 percent); Wichita Falls/Sheppard Air Force Base, Texas (-7.5 percent); Holloman AFB/Alamogordo, N.M. (-5.7 percent) and Beale AFB, Calif. (-5.2 percent). Individual rates for 2012 can be found online at: www.defensetravel.dod.mil/site/bahCalc.cfm.
Also rising Jan. 1 will be military basic pay, by 1.6 percent, and basic allowance for subsistence by 7.2 percent to match the increase in food prices during fiscal 2011 as measured by a Department of Agriculture food cost index. Subsistence for enlisted will increase from $325.04 a month to $348.44.
Service members living off base overseas get an Overseas Housing Allowance based on what members actually pay in rent. It gets adjusted as the dollar's value shifts against local currency.
Veterans using the GI bill get a monthly living stipend equal to the basic housing allowance in their area for an E-5 without dependents. Veterans Affairs will use new rates to adjust the stipend next August before the start of the new academic year, said Keith Wilson, director of VA education services.
By law, stateside housing allowances "have to be based on the cost of housing for civilians with comparable incomes in the local area," Woehr explained. Rates are set to cover 100 percent of median rental cost, utilities and rental insurance in each area based on the type of housing officials deem appropriate to a member's pay grade and dependent status.
Housing payments will total $20 billion in 2012, up from $19 billion last year, Woehr said.
To comment, email milupdate@aol.com, write to Military Update, P.O. Box 231111, Centreville, VA, 20120-1111 or visit: www.militaryupdate.com.
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