DoD Releases New BAH Rates

DoD Releases New BAH Rates: The Department of Defense (DoD) released Base Allowance Housing (BAH) Rates for 2014 Tuesday afternoon. Most service members will see an average 5 percent increase in their allowance without dependents. BAH rates are calculated using the median current market rent, include an average of utility costs (electric, heat, and water) and the average renter’s insurance for a given market.

The rate for each location differs on rank and whether or not the service member has dependents. Most rates go up annually, but some do decrease. However, service members have individual rate protection, so any time the rate goes down, the higher rate is kept to prevent financial hardship for those who have committed to leases and payments at the higher rate. In other words, your rate can go up, but it can’t go down. Decreases only apply to those who move to a new location during a Permanent Change of Station (PCS) after the decrease.

The following areas saw the highest increase in BAH:

Mobile, AL (14.9%)
Honolulu, HI (14.7%)
Minneapolis (14.5%)

The largest decreases in BAH were at the following locations:

Sacramento, CA (-7.7%)
Yuma, AZ (-6.1%)
Altus AFB, OK (-5.9%)

You can determine the BAH rate for your location, as well as view the breakdown of how much of the BAH should be used for rent, utilities, and insurance here.

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