2014 BAH Rates Announced
The Department of Defense has released the 2014 Basic Allowance for Housing (BAH) rates. BAH rates will increase an average of 5 percent when the new rates take effect on January 1, 2014.
On average, BAH rates for members with dependents will increase approximately $79 per month and $76 for members without dependents. A typical mid-grade enlisted member with dependents, for example, will find his/her BAH about $79 per month higher than last year, while a typical junior officer without dependents will find his/her BAH about $76 higher than last year.
An integral part of the BAH program is the provision of individual rate protection to all members. No matter what happens to measured housing costs, an individual member who maintains uninterrupted BAH eligibility in a given location will not see his/her BAH 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.
Data are collected annually for over 300 Military Housing Areas (MHAs) in the United States, including Alaska and Hawaii. An important part of the BAH 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.
Three components comprise the total housing cost for each MHA and are included in the BAH computation: median current market rent; average utilities (including electricity, heat, and water/sewer) and average renter's insurance. Total housing costs are developed for six housing profiles (based on dwelling type and number of bedrooms) in each MHA. BAH rates are then calculated for each pay grade, both with and without dependents.
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 in the future.
For more information on BAH, including the 2014 BAH rates and 2014 BAH rate component breakout, visit https://www.defensetravel.dod.mil/site/bah.cfm. Service members can calculate their BAH payment by using the BAH calculator at: http://www.defensetravel.dod.mil/site/bahCalc.cfm.