How It Works
BAH is given to members so that they can provide housing for themselves and their dependents (usually spouse and children). BAH is given when the member and their dependents do not occupy government quarters.
BAH is non taxable money paid on a monthly basis. There are 3 factors for determining the amount of BAH:
- Pay grade (this is essentially synonymous with rank), the higher the grade, the higher the BAH.
- Location in the United States - BAH is intended to match the average monthly rent in the area where the member is stationed, thus more expensive regions (they are indexed by zip codes) to live allocate more BAH. Depending on the status of the assignment (such as temporary duty, or an unaccompanied assignment) the BAH may be calculated where the dependents actually reside.
- If the member has dependents or not. There are 2 types or BAH, with dependents and without dependents. The rationale behind this is that a single person doesn't need as much room as a couple or a family.
The United States Department of Defense is conducting a study of the pros and cons of removing the differences between with and without dependent BAH, as it is a common complaint of "prejudice" by members without dependents.
The following do not affect the amount of BAH:
- The number of dependents (a member with a spouse and no children and a spouse and one or several children receive the same amount of BAH).
- The actual amount paid for rent.
Some members look for quarters that charge less than the BAH and are therefore able to keep the extra money; while others find places that charge more than the BAH, and must make up the difference themselves.
Reservists who are activated, even if they are housed by the military during their mobilization, are still paid BAH on the assumption that a reseervist still may have the civilian obligations (like a mortgage) that BAH is designed to offset.
Lastly, veterans who are full-time students taking advantage of the Post 9-11 GI Bill are given an allowance pegged to the BAH with dependents rate for an E-5, irrespective of their rank or dependent status.
Read more about this topic: Basic Allowance For Housing
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