[ The Real McCoy Online Home ]                                                                                                                    January 11, 2008

Basic Housing Allowance increasing for servicemembers

       The Department of Defense has released the 2008 basic allowance for housing (BAH) rates. In total, the planned increase in housing allowance funds for 2008 is about $600 million above the 2007 amount.

      Military members received an average housing allowance increase of 7.3 percent when the new rates took effect Jan. 1.

      Three components are included in the BAH computation:

  • Median current market rent.

  • Average utilities (including electricity, heat, and water/sewer).

  • Total housing costs are calculated for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. BAH rates are then calculated for each pay grade, both with and without dependents.

      An estimated $17.5 billion will be paid to more than 1,200,000 servicemembers in 2008. For members with dependents, average increases in the BAH are approximately $83 per month. A typical E-4 (specialist/corporal) with dependents, for example, will find his/her BAH about $63 per month higher than last year, while an E-8 (master sergeant, first sergeant) with dependents will receive about $79 more 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 in a given location will never see his/her BAH rate decrease. This assures 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.

       For further information, visit the Web site http://perdiem.hqda.pentagon.mil/perdiem/bah.html.

      Personnel can determine their BAH rates by selecting/entering their dependent status, their rank (pay grade) and their duty zip code.

      Comparison data from the years 1998-2007 also are available at the site.

      BAH questions may be forwarded to Sherry Oslie, Family Housing Manager, (608) 388-3906 or 
. The Fort McCoy BAH increased for all ranks.

(Submitted by Department of Defense News)


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