Basic Allowance for Housing (BAH) Rates Update – December 2020

Come December, I just can’t help myself.  I have to check on the new BAH rates and run our information through an online military pay calculator to see just what the new year will bring to our family’s bank account.

New BAH Rates

The 2021 Basic Allowance for Housing (BAH) rates were recently released and on average, military families across the nation will see a 2.9% increase over 2020 rates.  The increase goes into effect on January 1, 2021 and servicemembers will see the change on their January 15, 2021 pay.

My Situation

My family is currently stationed at United States Military Academy at West Point and we are seeing a small (but helpful) increase for the coming year.  BAH rates vary by grade and dependency status and are calculated to cover 95% of housing expenses.  Rates are based on current market rent and average utilities in about 300 military housing areas in the United States and rates vary depending on where you’re stationed.

BAH If You Stay At Current Location

While there are some big winners out there, hello Huachuca!, there have also been decreases in several areas.  Not to worry!  Your BAH will never go down while at the same duty station.  You will keep the rate you are currently at and if you’re at a location with an increase, your BAH will increase as well.  This is to make sure that servicemembers who have made long term commitments are able to meet them even if the area’s housing costs decrease.

How has your BAH been affected?  Will this impact your upcoming PCS and housing decisions?

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