This past summer’s PCS peak season was one for the record books. The lack of moving companies available for moving items and the short-staffed companies leaving families in the lurch to pack their own things or find a UHaul was compounded with an all-time housing price high. In response to the rising housing prices, a temporarily elevated BAH has been offered to 56 areas per the recently released memo from the Secretary of Defense.
The housing market around the United States has outpaced the previous housing price bubble. Both rental rates and purchase rates escalated in the spring of 2021, right in time for military movers. The demand for available homes slowly increased the already higher prices. Stories of military families standing in 10-people deep lines just to see rentals off base while waiting months in hotels because on-base housing was also not available were commonplace. Meanwhile, families were spending hundreds of dollars on rental applications to be one of 20+ families being considered. The demand for homes increased rental prices, forcing some families to spend hundreds of dollars above Basic Allowance For Housing (BAH) for a home.
Basic Allowance for Housing (BAH) is designed to cover 95% of a service member’s housing costs – this includes housing rental and utility costs. The increase in rental and purchase prices has driven monthly rental and mortgage costs wildly higher than this. The several hundred dollars over BAH means families are paying over their allotment for the rental alone and does not account for utilities. In some areas like Southern California, electricity alone can cost several hundred dollars due to their tiered pricing by time. This means some families are spending $500-$1000 over their housing allowance.
To some, spending over the allowance isn’t a stretch, but to some it a financial strain. The financial strain may impact the service member and affect the mission. Per a press release by the DOD, the 5% expected as an out-of-pocket expense to service members was calculated to range from $70 to $158. This is a bit different than what some families are facing for out-of-pocket costs now. In previous years, BAH was only meant to cover 80% of the average housing and utility costs, but this increased in 2005 to 100% with the slow re-integration of out-of-pocket costs since that time.
What areas are included in the BAH increase?
Each area has been given a percentage increase by locations from 10-20%.
20% Increase Authorized For:
- Twenty Nine Palms MCB, CA
- Eglin AFB, FL
- Boise, ID
- Mountain Home, AFB, ID
- Spokane, WA
- Lemoore NAS, CA
15% Increase Authorize For:
- Barstow/Fort Irwin, CA
- Beale AFB, CA
Sacramento, CA
Stockton, CA - Riverside, CA
- Bridgeport, CA
- Fort Pierce, FL
- Helena, MT
- Lubbock, TX
- Hampton/Newport News, VA
10% Increase Authorized for:
- Phoenix, AZ
- Fort Huachuca, AZ
- Yuma, AZ
- Fresno, AZ
- San Bernadino, CA
- El Centro, CA
- Colorado Springs, CO
- New London, CT
- Hartford, CT
- Tampa, FL
- West Palm Beach, FL
- Ocala, FL
- Florida Keys, FL
- Savannah, GA
- Springfield/Decatur, IL
- Portland, ME
- Saginaw, MI
- Springfield, MO
- Malmstrom AFB/Great Fls, MT
- Morehead City/Cherry Point MCAS, NC
- Camp Lejeune, NC
- Wilmington, NC
- Ashville, NC
- Fort Monmouth/Earle NWS, NJ
- Trenton, NJ
- Albuquerque/Kirtland AFB, NM
- White Sands Mr/Las Cruces, NM
- Nellis AFB/Las Vegas, NV
- Reno/Carson City, NV
- Providence, RI
- Waco, TX
- Salt Lake City, UT
- Quantico/Woodbridge, VA
- Richmond/Fort Lee, VA
- Dahlgreen/Fort AP Hill, VA
- Bremerton, WA
- Port Angeles, WA
To receive the increased BAH, the service member must apply per their service branch’s application showing that their total housing costs of rent and utilities are over the current authorized BAH rate. The increase will be in effect from 1 October 2021 to 31 December 2021. If there is a dependency change during this time period, the service member must reapply to demonstrate that the authorized BAH rate does not cover their expenses.
It has not been announced that this temporary increase will continue beyond 31 December 2021 at this time. There are many areas on the list that are not named that still demonstrate high rental prices coupled with competition, like Southern California.
Is your area getting a BAH temporary increase?
This is so comforting! We recently PCS’d as a family of 4 from Eglin AFB TO LANGLEY AFB in Hampton Virginia.. we struggled badly to find a home! There was a long waiting list for base housing, so that wasn’t an option, rents significantly superceeded our BAH .. by more than $600 plus dollars a month not including utilities.. and there were limited rentals available.. We were forced to buy a home, and our only choice was a fixer upper that is still costing us well over our BAH rate and does not include any utilities… which is sorely low considering the current availability & cost of housing here in VA. As a military spouse this has been our most stressful move and housing situation we have been met with thus far! I am grateful the DOD is acknowledging this severe issue.
Thank you,
One stressed out military wife
no increase for homestead florida which is BULL
yes this is a reserve base BUT we are active duty full time army stationed in this god forsaken place and no increase