The Defense Department released the 2013 Basic Allowance for Housing rates, which take effect Jan. 1.
Overall rates will increase an average of 3.8 percent in 2012.
For troops with family members, average increases in BAH are about $60 per month. A typical E-6 with family members, for example, will find get about $60 per month more than last year, while an O-3 with family members will receive about $55 more than last year.
In areas where rates will decrease, the drop will only apply to troops arriving at those locations.
Troops are protected by individual rate protection that ensures those already assigned to a given location will not see their BAH rates decrease; however, they will receive the increase if the rate goes up. This ensures that troops who have made long-term commitments in the form of a lease or contract are not penalized if the area’s housing costs decline.
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 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 family members.
For more information on housing rates, go to https://www.defensetravel.dod.mil/site/bah.cfm.