I want to spend a few minutes discussing Basic Allowance for Housing, better known by its acronym BAH.  I hope that you share my consideration that BAH is an important topic, after all, it exists for one vital purpose:  to provide you with the best possible housing relative to your paygrade and family status.

First, what is it?  Let me tell you up front that BAH is NOT what used to be called VHA or Variable Housing Allowance.  That’s a good thing.  Our housing allowance is no longer tied to specific lease or rental agreement amounts or dependent on yearly surveys.  It is an equitable system designed to fairly pay each service member the same amount based on their duty station ZIP code, dependency status, and pay grade.

BAH only applies to those Sailors or Marines on duty in the 50 United States; A service member stationed overseas, including U.S. protectorates, who is not provided government housing, is eligible for Overseas Housing Allowance, or OHA. 

Next, I’d like to dispel a few myths about BAH.  First, it doesn’t always cover all out of pocket expenses and it is not designed to.  BAH is paid based on the median housing cost within an approximate twenty mile radius of your duty station ZIP code.  A lower rent and/or lower utility cost will reduce out of pocket expenses.  The BAH system makes it your responsibility to research your housing costs and utility useage and then to choose to live within your BAH or to incur additional expense. 

Second, BAH does not account for family size.  This ensures greater equity for service members.

Third, BAH does not account for provision of commissary, exchange, or health care facilities.  Although those entitlements do affect cost of living, BAH is a housing allowance, and is designed to offset housing costs.  Finally, BAH isn’t designed to address the different costs of owning a home and paying a mortgage. 

While many members use BAH to pay or offset their mortgage, and it’s perfectly legal to do so, mortgages are not taken into consideration when calculating BAH.  The system reflects current rental market conditions at duty stations, rather than trying to equitably master the complexity of mortgage loans, interest rates, and other economic costs related to home ownership.

Who’s eligible for BAH?  Any service member who is not provided government housing (or, with the proper approval, elects not to use government housing) is eligible for BAH based on duty station ZIP code, dependency status (with our without dependents), and pay grade.  Dual military couples are each entitled to BAH at the “without dependents” rate unless the couple has children in which case one may collect BAH at the “with dependents” and the other member collects BAH “without dependents.”

Please note that for certain paygrades for members without dependents, shipboard berthing or a “barracks” room may be considered government housing and therefore you won’t automatically qualify for BAH; it’s wise to check with your admin or personnel office as to whether you’re entitled.

The question is often asked about the connection between BAH, PPV, and government housing.  For purposes of BAH, PPV is not considered government housing because you are leasing your home from a private owner, not the government. 

Therefore you’re paid BAH.  Rates for PPV housing are determined based on pay grade and are established by agreement between the PPV provider and the Navy.  Like off-base housing options, the rental rates for PPV housing are designed to be competitive to guarantee you true choice of where you want to live.

Recently, you should have been asked to bring proof of dependency and residence status to your admin or personnel office for BAH verification.  It is unfortunate that we had to take such a drastic measure, but equally unfortunate is that some Sailors recently perpetrated serious BAH fraud in various locations throughout the United States.  In order to protect your entitlements, the Navy directed all installations and all commands to verify BAH entitlement.

There are two great resources available to you if you have questions about BAH.  The first is your local admin or personnel office, whether that’s on your ship or submarine or on base at a local PSD.  Those folks are there to help you understand your entitlements. The second resource is the web site of the Per Diem, Travel and Transportation Allowance Committee. You can access that site at:  https://secureapp2.hqda.pentagon.mil/perdiem/{{PERIOD}}

Stay knowledgeable about your BAH (and other allowances); you’ll enjoy better housing by maximizing your use of it and by raising your awareness of making your money and knowledge work for you.