The 2021 Basic Allowance for Housing (BAH) rates have been released!
The first day the BAH rates are released the online BAH calculator tends to get overwhelmed and crashes. Inquiring minds all want to know, “Did my BAH rate increase in 2021?”
Or maybe you are dreaming of your next duty station for an upcoming PCS and want to look at all of the potential homes you could buy or rent within your 2021 BAH rate. You may be asking, “What is the BAH at our next duty station?”
The best way to find out the 2021 BAH rate in your area if the BAH calculator is down is to look at a PDF of the actual chart. Since we here at Military With Kids are all military families with dependents, all of the rates on this chart are “with dependents.”
Simply look up the location of your duty station and then run your finger across that row until you match up to the correct pay grade. The number in the box at that intersection of your location and pay grade tells you the monthly BAH you will receive in 2021.
Your current BAH will not decrease in 2021
As a reminder, the Basic Allowance for Housing is protected. That means if the area you are stationed has a decrease in BAH rate in the new year, it only applies to new orders. You will not lose money. Your rate would be safeguarded at the previously higher rate until you move.
And as always, BAH is one of the best parts of military pay as it is completely tax free.
What is BAH?
The Defense Travel Management Office informs that Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status. It provides uniformed Service members equitable housing compensation based on housing costs in local civilian housing markets within the United States when government quarters are not provided.
What that means is BAH is the amount provided for the military member’s housing when they do not live on base.
It is not considered taxable income.
The BAH for military members with dependents is higher than those who do not have dependents. The Basic Allowance for Housing does not change based on the number of dependents – it is just with or without.