Announcement

Announcement Module
Collapse
No announcement yet.

BAH gets average 2 percent bump for 2012

Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • BAH gets average 2 percent bump for 2012

    By Andrew Tilghman - Staff writer
    Posted : Thursday Dec 15, 2011 9:38:27 EST

    Basic Allowance for Housing rates will rise an average 2 percent next year across the nation, but rates will drop slightly in about one-third of U.S. locations, according to new Defense Department data released Thursday.

    Rates increased most in the area surrounding Minot Air Force Base, N.D., where the monthly stipend spiked 40 percent. Rates in the Washington, D.C., metro area, home to more than 43,000 service members, also saw a sharp rise, up nearly 10 percent from 2011, the new data shows.

    For example, an E-5 with dependents living in the Washington metro area will receive $2,106 for a monthly housing stipend. An O-3 with dependents in or near Washington will receive $2,874 in 2012, the data shows.

    The largest drops came in parts of California, including the area around Fort Irwin in Barstow, where rates will dip 8.5 percent in 2012. Ventura, Calif., and Los Angeles also saw significant drops of 7.4 and 5.8 percent, respectively.

    For example, an E-5 living with dependents in Barstow, Calif., will receive $987 monthly. An O-3 officer there will get $1,392 per month in 2012.

    The lower rates will affect only those troops who move into a new area this year.

    When rates go up, all service members in a given location get the increase. But when rates dip, the military’s “individual rate protection” policy ensures that troops already settled in a location will not see their BAH decrease for as long as they remain in that location, assuming no change in dependency status or a reduction in pay grade.

    That policy assures that troops who have signed long-term leases are not penalized if housing costs in their area fall.

    BAH rates remain high by historical standards. Until 2005, troops were expected to cover some of their housing costs out of their own pockets. But Congress changed the law, and now the Pentagon gives troops 100 percent of estimated housing costs for their area.

    Median rental costs are only one factor in the complex formula officials use to determine BAH rates. It also includes the average utilities costs and renter’s insurance rates. The Pentagon analyzes that data annually for 365 U.S. housing markets, including Alaska and Hawaii.

    The Defense Department will pay out a total of about $20 billion in BAH, a slight uptick from last year’s total of about $19 billion. More than 1 million troops receive BAH to cover housing off post or rent in privatized housing complexes on military installations.

  • #2
    Re: BAH gets average 2 percent bump for 2012

    Over the past 2 years, it has dropped over 150 dollars in my area. Fortunately, I've been locked in at the higher rate, but I'm still surprised it has dropped so much.

    Comment


    • #3
      Re: BAH gets average 2 percent bump for 2012

      Good increase for me!! Plus I hit another even year of service coming up so another good increase. And then a deployment in 50 days so another increase!!

      Comment


      • #4
        Re: BAH gets average 2 percent bump for 2012

        Just saw the cover page of this week's Army Times on Congress approving 15 year retirements. Happily await your post o13.

        Comment


        • #5
          Re: BAH gets average 2 percent bump for 2012

          Originally posted by fmcityslicker View Post
          Just saw the cover page of this week's Army Times on Congress approving 15 year retirements. Happily await your post o13.
          I wonder if that will affect ADOS orders. Is this a temporary measure for defense cuts or a new permanent benefit?
          Last edited by Mike.; December 19th, 2011, 05:00 PM. Reason: adding question

          Comment


          • #6
            Re: BAH gets average 2 percent bump for 2012

            Originally posted by Mike. View Post
            I wonder if that will affect ADOS orders. Is this a temporary measure for defense cuts or a new permanent benefit?
            From what I read; it will affect certain officer grades and branches. The measure will be in effect until 2018. Once the article is officially posted to a website; I will link it.

            Comment


            • #7
              Re: BAH gets average 2 percent bump for 2012

              Doesn't matter, live on post.

              Comment

              Working...
              X