As a member of the armed services, it can be tough to stay abreast of all the changes, especially as it relates to your benefits. MBA wants to help you sort through and better understand some of these changes as they occur. There have been two recent changes that will help you improve your financial situation: the increase in Basic Allowance for Housing (BAH), and a new transferability option to the Post-9/11 GI Bill.
So What's New in the World of BAHBAH is a housing allowance for those living off-base. The amount is based on geographic duty location, pay grade, and dependency status. The BAH rate increased an average of 6.9 percent for 2009! BAH tables are updated and released every year between December 15 and January 1. There are several types of BAH to satisfy various housing situations that occur among military members. For more information and to calculate your 2009 BAH rate, please visit
the DoD information site and for types of BAH, visit
militarypay.defense.gov.
Capitalizing On The Opportunity – Get More for your BAH DollarHave you ever thought about living off-base? This year’s expected 6.9 percent increase in BAH coupled with historically low interest rates provides uniformed service members with a unique opportunity to get into the housing market. The U.S. is experiencing a decline in inflation, from a 5 percent inflation rate to 1.3 percent, according to inflationdata.com. With this decrease in inflation and increase in BAH rates, uniformed service members now have more buying power. This presents an excellent opportunity to move off-base in the midst of lower housing costs and the lowest inflation rate in more than 54 years!
For a look at historic inflation rates, visit
the USA Inflation Calculator.
What Should Uniformed Service Members DoIf you live on-base, take time to research housing costs near you to ensure you are getting the most for your BAH allotment dollars. Although house prices and rents have leveled off in some parts of the country since 2008, there are still other places where prices continue to fall. If you are thinking about buying a house, now may be the time to sit down with a financial planner to see what you can afford. If you are renting, what you agreed to pay a year ago for your rental might have been a good price then, but maybe there is a better deal today. Keep in mind BAH comes with individual rate protection, which prevents decreases in housing allowances, as long as the status of a uniformed service member remains unchanged.
For more on BAH, visit:
http://www.defensetravel.dod.mil/perdiem/bahfaq.html - just FAQs
http://www.defensetravel.dod.mil/perdiem/BAH-Primer.pdf - All you want to know about BAH (you will need Adobe Acrobat to view this file)
Sneak Preview: Post-9/11 GI Bill TransferabilityAllowing career service members to transfer their GI Bill benefits to family members has long been one of the most requested items among military family readiness and advocacy groups and now it is finally a reality.
The buzz is out–look for further insight and tips on this new option that’s available to you! Follow our blog to see our post on Post-9/11 GI Bill transferability.
