Officials have proposed a 2.7% increase for the Basic Allowance for Housing (BAH) rates beginning January 1, 2022.
The proposed increase in BAH is an average, and actual rate increases will still be determined based on your individual location.
The rate could still change depending on what happens between Congress and the White House during negotiations for next year’s Defense Budget.
Pay increases reflecting the new BAH rates will take effect on January 1, 2022. You will see the increase in your paychecks beginning January 15, 2022.
To see your current BAH rate, you can visit the Department of Defense’s calculator here.
Not all locations will see BAH increases, as the housing allowance is based on the duty station zip code. For veterans using Post-9/11 GI Bill® benefits, the BAH is based in the zip code of the school and corresponds with the cost of living for that zip code. Cities with higher costs of living such as Honolulu, Chicago, and Los Angeles have very high BAH rates to offset those costs. Small or rural cities such as Tacoma or Colorado Springs have a lower cost of living and are assigned a lower allowance. New BAH rates will affect all military members, including veterans using the GI Bill®. Note that “rate protection” ensures members currently living in locations set to receive a decrease will continue to receive the old BAH rate. New, lower BAH rates will be applied to troops moving into a new area and to those who change dependency status or rank.BAH rates from MilitaryBenefits.info
The BAH is not intended to fully cover a service member’s housing costs anymore. On average, you will pay around 5% of the cost of your rent and utilities. The amount you’ll pay out-of-pocket varies based on whether you have any dependents. Your pay grade and location also affects your BAH rate.
The proposed 2.7 percent increase in 2022 is slightly lower than the 2.9 percent increase seen in 2021.