Pentagon releases 2011 BAH rates

WASHINGTON (WAVY) - The Department of Defense released the 2011 Basic Allowance for Housing (BAH) rates on Wednesday. The new rates take effect on Jan. 1, 2011.

While a Pentagon statement says overall rates will decrease an average of 0.59 percent, because of the individual rate protection provision, the average service member will see a 1.1% increase.

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

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. Officials say this assures that members who have made long-term lease or contract commitments are not penalized if the area's housing costs decrease. Any decreases only apply to new service members reporting to that location.

The BAH allowance covers housing costs for servicemembers living off military installations in the United States; those who live in government housing don't receive the allowance. Servicemembers stationed overseas who live in private housing receive the overseas housing allowance. Rates for that allowance are reviewed at least every six months, defense finance officials said.

"The reality is, the [basic allowance for housing] rates vary and the changes in the rates vary across the country, with some housing areas decreasing as much as 8 percent and others increasing more than 10 percent," Cheryl Anne Woehr, a housing allowance program analyst, told the American Forces Press Service. "Rent is the largest component of the BAH rates, so that has the most influence on what rates do."

The military says 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 housing 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 dependents.

Jerilyn Busch, director of military compensation, said servicemembers also will see an increase in pay and subsistence allowances in January. A 1.4 percent basic pay raise takes effect Jan. 1 by operation of law, and it reflects the change in the employment cost index, she said. That raise will be in effect until Congress passes the National Defense Authorization Act, which currently contains a 1.9 percent pay raise. But the final raise military members receive will be in accordance with the defense authorization act as signed by the president, Busch said.

The basic allowance for subsistence in 2011 will increase 0.36 percent, Busch said. The new rates will be $223.04 for officers and $323.87 for enlisted servicemembers.

Click here to see the 2011 BAH rates for service members without dependents.

Click here to see the 2001 BAG rates for service members with dependents.

More information on Basic Allowance for Housing rates is available here.

(Compiled, in part, from report by Karen Parrish, American Forces Press Service)