Basic Allowance for Housing
Encyclopedia
Basic Allowance for Housing (B-A-H) is a United States military
entitlement
given to many military members. It was previously called Basic allowance for quarters (BAQ).
BAH is non tax
able money paid on a monthly basis. There are 3 factors for determining the amount of BAH:
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-
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. Likewise, all servicemen who are deployed are paid BAH, since they may still maintain a residence stateside.
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.
, or OHA may be given instead of BAH when a member is stationed outside the United States. Overseas Housing Allowance (OHA) which is similar, but has some significant differences. In OHA, each country, and each region in a country have a cap on a per month basis as to what the military will pay for housing. OHA is the exact amount of monthly rent in the local currency (so the exchange rate is taken into consideration each month as the member is paid in US dollars) up to the cap.
OHA may also be paid in certain circumstances if the dependents are living overseas, for example if a member is deployed, and the dependents stay in a country outside of the US.
Frequently a "utility allowance" also accompanies OHA. This is usually a flat rate given to the member to cover the cost of utilities, regardless of the actual amount.
Military of the United States
The United States Armed Forces are the military forces of the United States. They consist of the Army, Navy, Marine Corps, Air Force, and Coast Guard.The United States has a strong tradition of civilian control of the military...
entitlement
Entitlement
An entitlement is a guarantee of access to benefits based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with legal framework of a society...
given to many military members. It was previously called Basic allowance for quarters (BAQ).
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 tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
able money paid on a monthly basis. There are 3 factors for determining the amount of BAH:
- Pay gradePay gradePay grades are used by the uniformed services of the United States to determine wages and benefits based on the corresponding military rank of a member of the services...
(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
United States Department of Defense
The United States Department of Defense is the U.S...
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. Likewise, all servicemen who are deployed are paid BAH, since they may still maintain a residence stateside.
Lastly, veterans who are full time students taking advantage of the Post 9-11 GI Bill
Post-9/11 Veterans Educational Assistance Act of 2008
The Post-9/11 Veterans Educational Assistance Act of 2008 is Title V of the Supplemental Appropriations Act of 2008, , , an Act of Congress which became law on June 30, 2008. The act amended Part III of Title 38, United States Code to include a new Chapter 33, which expands the educational benefits...
are given an allowance pegged to the BAH with dependents rate for an E-5, irrespective of their rank or dependent status.
OHA
Overseas Housing AllowanceOverseas Housing Allowance
An overseas housing allowance is a United States military entitlement given to military servicemen and women living overseas. It is the overseas equivalent of the Basic Allowance for Housing.-How it works:...
, or OHA may be given instead of BAH when a member is stationed outside the United States. Overseas Housing Allowance (OHA) which is similar, but has some significant differences. In OHA, each country, and each region in a country have a cap on a per month basis as to what the military will pay for housing. OHA is the exact amount of monthly rent in the local currency (so the exchange rate is taken into consideration each month as the member is paid in US dollars) up to the cap.
OHA may also be paid in certain circumstances if the dependents are living overseas, for example if a member is deployed, and the dependents stay in a country outside of the US.
Frequently a "utility allowance" also accompanies OHA. This is usually a flat rate given to the member to cover the cost of utilities, regardless of the actual amount.