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Feeling the Squeeze: Are Military Housing Benefits Not Enough?

September 17, 2022

Happy young couple in front of newly sold home

Rent prices are skyrocketing while military housing benefits only see a slight increase. Military families are left to figure out how to pay what their housing allowance doesn’t cover.

Continue reading to learn how the rent growth situation affects military personnel even though they receive military benefits. We’ll also discuss how the Department of Defense is working to fix this problem.

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What Is Military Housing Allowance?

The Basic Allowance for Housing (BAH) refers to one of the benefits available to military families. This stipend is available to military families when there aren’t adequate housing options on base. The amount paid by BAH depends on the service members’ location, rank, and the number of dependents. 

When faced with inadequate housing options, these military families have to find housing elsewhere. On one hand, this may help to make these neighborhoods feel a little safer. On the other, it puts a financial strain on military families when their housing allowance doesn’t cover the costs. 

The rates for housing allowances increased since the beginning of 2022. However, this increase doesn’t match the changes in the housing market.  

Why Are Rent Prices Increasing?

Buying a home with a white picket fence was a huge part of the American Dream once upon a time. Unfortunately, the increased costs associated with buying a home make it impossible for those without a disposable income. This means that more people are looking to rent homes all over the country instead of buying them. 

As a result, rentals are in high demand. Most of the ideal homes for these military families are either overpriced or too far away from their base to be a comfortable daily commute.

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What Can We Expect From DOD?

The Department of Defense says military housing offices keep tabs on the local housing markets. This allows them to make adjustments as needed.

They also have referral services for military personnel to find housing for their families when they have to move to a new location. The DOD should recalculate the housing allowances every year. 

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The House Committee of Armed Services recently wrote a bill regarding the BAH Calculation Improvement Act to get to the bottom of the issue. The bill gives DOD one year to submit a report to Congress detailing the efficiency and efficacy of BAH. They’ll also determine if there are more efficient ways to calculate BAH rates.

Are Military Housing Benefits Enough?

As the rent prices are rising, it’s increasingly difficult for these military families to find homes near their local military base. When individuals are paying hundreds of dollars out of pocket towards rent each month, military housing benefits just aren’t cutting it. 

Feel free to subscribe to our newsletter for more news regarding housing shortages and military benefits. After all, one of our goals is to shine a light on military benefits and discounts that you might be missing out on.

This article was originally published on USMilitary.org, and has been shared with permission.

Reader Interactions

Comments

  1. William Butler says

    August 29, 2022 at 3:27 pm

    Retirement pay SHOULD not taxed. It is being paid by the taxes the service member paid while on active duty .

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