Good day folks! So this just in—>>> Basic Allowance Housing (BAH) rate will increase to an average of $41 per month January 1. The calculation used to determine it shrinks the amount of housing costs it is designed to cover.
BAH is re-calculated yearly using a snap-shot of housing cost in each region. For 2017, the rate is designed to cover 97 percent of troops’ housing costs, which is a one percent drop from last year also the third step in a congressional plan to reduce rates by five percent over the next five years. The rate also no longer covers the cost of rental insurance.
The Basic Allowance for Subsistence (BAS) rate for 2017 will remain un-changed from 2016 at $253.63 for officers and $368.29 for enlisted personnel. BAS is calculated based on the average price of food. BAH and BAS changes will be reflected in troops January 15th pay-check.
Troops in areas or pay-grades set to receive a BAH rate increase will receive the new, higher rate beginning in January. Those who live in an area with a rate reduction for 2017 will be grandfathered into the old, higher rate until they leave the area or change rank. If they are promoted and their new rank receives a lower rate, they will continue to receive their old, higher rate.
There are almost 2,000 troops stationed in Atlanta, Georgia, and they will see the largest increase in BAH for 2017 at 19 percent. An increase from $1,374 for an E-4 with dependents to $1,641.
Troops in Seattle will also see a major increase as well for their second year in a row. The average rate there will rise 13 percent for 2017. An increase from $2,073 for an E-4 with dependents to $2,373.
There are also areas facing larger rate drops for instance, Fort Huachuca, Arizona, where the rate will decrease by nine percent. Going from $858 for an E-4 with dependents currently living there to $789 for those new to the region.
Minot, North Dakota, also will face a major drop this year, with a rate decrease of 11 percent. Which goes from $1,308 for an E-4 with dependents currently living there to $1,170 for new residents.
Minot was the recipient of a 41 percent BAH increase in 2012 when flooding combined with an oil boom causing a major housing shortage.
I urge you all to please keep up with current events, you very well could be affected by certain things happening around us.
Isaac J. Hall II