The Department of Defense today released the 2010 Basic Allowance for Housing (BAH) rates. Military members will receive an average housing allowance increase of 2.5 percent when the new rates take effect, Jan. 1, 2010.
For members with dependents, average increases in the BAH are approximately $37 per month. A typical junior enlisted member with dependents, for example, will find his/her BAH about $25 per month higher than last year, while a senior non-commissioned officer with dependents will receive about $42 more than last year.
Three components 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 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 $19 billion will be paid to nearly 1 million service members in 2010.
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 not 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.
The continued improvement in housing allowances represents the Department’s commitment 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, visit http://perdiem.hqda.pentagon.mil/perdiem/bah.html.