Late last year, the Department of Defense announced its plan to increase Basic Allowance for Housing (BAH) rates starting January 1, 2022.

According to the DoD, BAH rates will increase an average of 5.1% which means an estimated $25.6 billion will be paid out to approximately one million active service members.

How to Determine Your New BAH Rates

The increase in rates will vary by the military members’ duty station zip code, pay grade, and dependency status.

To calculate your new BAH rates, use the BAH calculator here.

Veterans who are enrolled and eligible to receive the Post-9/11 GI Bill will receive BAH rates based on their school’s zip code.

What Does this Mean For You?

The primary goal of BAH is to cover 95% of housing expenses for service members, leaving the remaining 5% out of pocket.

If you have been considering purchasing a home, the increased BAH rates may now afford you the opportunity to look at homes that may have otherwise been out of your price range.

Another opportunity to consider would be using the difference from your previous monthly BAH and your new allowance to save up and put down for a potential investment property. This is a particularly solid idea if your EAS date is approaching.

You can purchase a home to be used as a rental property and turn your rental income into your new mortgage payment. Now that’s how you make real estate work for you!

For more information on homes available in your area, send us a message or give us a call!