But over 400K servicemembers and Vets will be protected from the drop.
According to an article by Tom Philpott, the overall average military Basic Allowance for Housing rates across the country will decline next month for the first time since BAH was established in 1998 (it was called BAQ before that). The drop reflects a decrease in the average rental costs across the over 400 designated military housing areas.
The good news is that about 400,000 active duty service members will see their Basic Allowance for Housing (BAH) protected from a rate drop Jan. 1. In addition current Post-9/11 GI Bill users who are getting a housing stipend will not see their stipend drop in January. These members and veterans are shielded thanks to "individual rate protection,” which was adopted by Congress nine years ago.
Note: Approximately 10 percent of the designated MHAs will not see a drop in BAH in 2011.
The BAH changes will affect servicemembers who relocate to one of the 366 military housing areas which saw a drop in rental costs in 2010. In addition, only veterans who change programs or begin using the Post-9/11 GI Bill in the coming year, and reside within one the 366 MHAs will be affected.
Learn more about the changes to the Post-9/11 GI Bill on the Military.com Education Blog.
The new rates go into effect on January 1, 2010 and will be reflected in the mid-month January paycheck for active duty and the February GI Bill payment for eligible veterans using the Post-9/11 GI Bill.
Read: 2011 BAH: Rate Protection Stops Pay Drop for Many for more details.