2012 BAH Rate Changes Explained

Frequently Asked Questions About the 2012 BAH Rate Changes

The DoD has released the 2012 Basic Allowance for Housing payment rates. The following is an explanation for the changes and a breakdown of how some locations will be affected.

1. Why are overall rates increasing this year?  

No one factor can be attributed to the increase in BAH.  BAH rates are based on the combination of local costs for rent, utilities and renter’s insurance for various housing types.  Any fluctuation of one or more of those factors in a given location will affect BAH rates for that location.   

2. How many BAH recipients will see a decrease in their BAH rates?

While BAH rates at about 35% of the Military Housing Areas (approx. 129 areas) will decrease, not all members stationed in those locations will see a decrease in their monthly BAH payment.   No matter what happens to housing costs, an individual member in a given location will not see his/her BAH rate decrease as long as he/she does not have a reduction in pay grade or change in dependency status. This ensures 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; this is called rate protection.  It is primarily those members who are relocating to an area who will receive the new, lower rate, but they also have the benefits of obtaining lower-cost housing.

3. What areas experienced the largest increases?

The following table shows which MHA's have the largest average increase (percentage of change) for BAH with Dependents

3. What areas experienced the largest decreases?

The following table shows which MHA's have the largest average decrease (percentage of change) for BAH with Dependents