Wednesday, December 15, 2010

Hot Off the Press - NEW BAH Rates for 2011

If you are stationed here within the US or CONUS (contiguous United States) as it’s called then you will receive Basic Allowance for Housing. This Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status.

The Department of Defense released today the 2011 Basic Allowance for Housing (BAH) rates, which take effect Jan. 1, 2011. While overall rates will decrease an average of 0.59 percent, because of the individual rate protection provision, (BOO!) the average change service members will see is a 1.1 percent increase (WOW!).

Use this calculator and see what your new BAH is going to be. If you see that your rate has decreased know that:

Individual rate protection ensures that individual members already assigned to a given location will not see their BAH rate decrease, though they will receive the increase if the rate goes up. 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. Any decreases only apply to members newly reporting to a location.

A typical junior enlisted member with dependents will find his/her BAH about $39 per month higher than last year, while a senior non-commissioned officer with dependents will receive about the same amount as last year.

How is BAH calculated?

There are three parts that are used to determine your BAH:

The average rent in the area where you are stationed
the average utility bill in the are that you are stationed, (including electricity, heat, and water/sewer)
Average Renters insurance (if you rent PLEASE make sure you have one!)
This calculations are made for 6 different types of housing styles (type of house/home/appartment and rooms) in military housing areas, then the rates are calculated for the different grades,with dependents and without dependents.

Reposted from (Thanks Susanna)

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