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Wednesday, December 22, 2010

HMM BAH Rates drop, well that means more money coming out of your pocket.

SO I have been reading about the (DoD) and they have released the 2011 Basic Allowance for Housing (BAH) rates, which take effect January 1, 2011. The average change service members will see is a 1.1 percent increase. Not only do we get a CRAPPY pay raise, they decrease the allowance for housing. SO that really means is, the light bill we pay on base we are going to have to pay more for out of our paychecks. Right now we get a base line that is suppose to be included in our rent, and if we go over the baseline then we pay out of our pocket. So a decrease in BAH, means more money we are going to have to pay out of our pocket to cover the Light Bill. Still do they think the cost of living is going to freeze everywhere, face it military members PCS like every 3 to 4 years, and so this BAH decrease will be affecting all of us.

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. This assures 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. Decreases only apply to members reporting to a new location.

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.

Example it will GO DOWN in 2011

E5 with Dependents
JAN 2011, it will be $1041 (this is less than what it was in 2009)
JAN 2010- BAH $1125
JAN 2009 it was $1089

The Article read "A typical junior enlisted member with dependents will find his/her BAH about $39 per month higher than last year, while a senior non-commissioned officer with dependents will receive about the same amount as last year."

Well I went to the OFFICIAL ARMY BAH Calculator and it is not higher it is always lower.... I did it for an E5 and E4.




REFERENCES:

BAH CALCULATOR- http://www.defensetravel.dod.mil/site/bahCalc.cfm

Press Release-http://www.defense.gov/releases/release.aspx?releaseid=14140

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