Question:
Looking over the new BAH rates for 2010 I have noticed the rates have gone down for Eglin AFB. For an E6 it is almost $50. Are these 'maybe' rates? Looking over the real estate market I haven't noticed a drop in prices so what was the reasoning behind the lower rates for the new year?
Answer:
The Basic Allowance for Housing (BAH) is based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided.
Each year the BAH tables are released between December 15 and January 1. Although some service members may see their BAH increase as much as 13.6 percent in 2010, the average increase will be more like 2.5 percent. Driven by lower rental costs in many areas, the 2010 BAH average increase is quite a bit smaller than the 2009 average rate increase of 6.9 percent.
According to the DoD, BAH rates now make it possible for service members to have zero out-of-pocket expense -- for service members living in civilian rented housing. Since 2008 the BAH rates are directly related to the cost increases of the local rental housing markets.
Although BAH rates will generally either remain stable or increase, there may be some areas that decrease due to a decreasing local rental market. However, individual rate protection will still apply. Individual rate protection prevents the decrease of a BAH rate as long as the status of a service member remains unchanged. The service member who is already attached to his or her unit and receiving BAH will receive any published BAH increase, but no decrease. When the new BAH rates go into effect, rate protection assures that the service members typical out-of-pocket costs may be less, but never more, than upon their reporting date.
This information was retrieved from Military.com website at http://www.military.com/benefits/military-pay/basic-allowance-for-housing-rates. For more information, please contact Eglin AFB’s Housing Office at 850.882.4533 or 882.3502.
