Jump to content


Forum | Advancement | Career | Veteran | Bases | Enlisted Portal


Sign in to follow this  
Tony

DOD Releases 2018 Basic Allowance for Housing Rates

Rate this topic

Recommended Posts

Tony

WASHINGTON (NNS) -- The Department of Defense released Dec. 15, the 2018 Basic Allowance for Housing rates. Basic Allowance for Housing rates will increase an average of 0.7 percent when the new rates take effect Jan. 1. An estimated $21 billion will be paid to approximately one million Service members. 

Continuing to balance the growth in compensation costs, the 2018 Basic Allowance for Housing program expands the member cost-sharing element (out-of-pocket expense). Based on the authority provided in the FY 2016 National Defense Authorization Act, the cost-sharing element has increased to four percent for 2018 which means a typical member will absorb four percent of the national average housing cost by pay grade. Even with the increase in cost sharing, on average, BAH rates will increase approximately $10 per month. A typical mid-grade enlisted member with dependents, for example, will find his/her BAH about $19 per month higher than last year, while a typical junior officer without dependents will find his/her BAH about $16 higher than last year.

Housing cost data are collected annually for over 300 Military Housing Areas in the United States, including Alaska and Hawaii. An important part of the Basic Allowance for Housing process is the cooperation from the Services and local military housing offices in the data collection effort. Input from local commands is used to determine in what neighborhoods data is collected and to direct the data collection effort towards adequate apartment complexes and individual housing units.

Median current market rent and average utilities (including electricity, heat, and water/sewer) comprise the total housing cost for each military housing area and are included in the Basic Allowance for Housing computation. Total housing costs are developed for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. Basic Allowance for Housing rates are then calculated for each pay grade, both with and without 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 cost-sharing 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. 

The Department is committed to the preservation of a compensation and benefit structure that provides members with a suitable and secure standard of living to sustain a trained, experienced, and ready force now and in the future.

For more information on Basic Allowance for Housing, including the 2018 Basic Allowance for Housing rates and 2018 Basic Allowance for Housing rate component breakdown, visit www.defensetravel.dod.mil/site/bah.cfm

Service members can calculate their BAH payment by using the Basic Allowance for Housing calculator at www.defensetravel.dod.mil/site/bahCalc.cfm

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Who's Online   2 Members, 0 Anonymous, 43 Guests (See full list)

    • MSC813
    • TM1/SS


  • Collisions at Sea   85 members have voted

    1. 1. Do you believe a higher operational tempo worldwide is contributing to more accidents at sea?


      • Yes
      • No

    Please sign in or register to vote in this poll. View topic
  • Popular Contributors

    1. 1
      CursedSwabbie
      CursedSwabbie
      11
    2. 2
      Just A OS1
      Just A OS1
      6
    3. 3
      Tony
      Tony
      5
    4. 4
      HM1(SW/AW/IW/FMF), MTS
      HM1(SW/AW/IW/FMF), MTS
      5
    5. 5
      Montrell1891
      Montrell1891
      4
×