Safe, affordable housing is the basis of stability and security for an individual or family. The Basic Allowance for Housing (BAH) is a critical component of financial well-being for servicemembers and families who experience frequent instability.

While BAH should provide peace of mind and reduce financial stress, the allowance isn’t covering full housing costs – a slight to our servicemembers MOAA hopes to correct as part of our ongoing Advocacy in Action Summer Campaign.

[TAKE ACTION: Summer Advocacy in Action: Contact Your Lawmakers During August Recess]

By the Numbers

• 5%: The DoD-implemented reduction in BAH from 2014 to 2019 (100% to 95% of projected housing costs), resulting in a cost-sharing amount to the member of anywhere from $85 to $194 per month.
• 70%: The percentage of military families living off base who pay more than $200 out-of-pocket per month.
• 2%: The average increase in fair market rents for FY 2024.
• 4%: The average BAH increase for the 2024 calendar year.
  
  

BAH in Perspective

Sergeant Jones, married with two children, receives orders to Fort Cavazos, Texas. His BAH is $1,401 per month. DoD estimates those serving on Fort Cavazos should reserve 19% of BAH for utility costs, leaving Sergeant Jones with $1,135 for monthly rent.

Sergeant Jones checks three trusted websites – Military By Owner, Zillow, and Apartments.com – to find a three-bedroom rental. His BAH will cover just 34 of 277 listings.

If his BAH covered 100% of estimated housing costs, the number of available rentals would double, offering him more options likely featuring everything from shorter commutes to better schools to more space for his family.

The Fix

Advocacy efforts are underway to address this issue, with promising developments in the FY 2025 National Defense Authorization Act (NDAA).

The House has included a provision in the FY 2025 NDAA to restore BAH to 100%, albeit for a single year. This temporary measure is a step in the right direction, acknowledging the financial strain on military families and the need for immediate relief. It reflects the growing awareness and urgency within Congress to support our servicemembers and their families.

In parallel, Sen. Raphael Warnock (D-Ga.) has introduced an amendment to the Senate's version of the NDAA advocating for the permanent restoration of BAH to 100%. This amendment goes beyond the temporary fix proposed by the House, seeking a long-term solution to the financial difficulties faced by military families. Warnock's amendment is a testament to his commitment to addressing systemic issues affecting the financial well-being of those who serve our nation.

[RELATED: Dates to Know as Congress Nears Key NDAA, Budget Deadlines]

Challenges and Costs

One of the primary challenges in restoring BAH to 100% is the cost associated with this change. Restoring BAH to its previous level would require significant additional funding for DoD. Additionally, any adjustment to BAH would trigger additional costs for the VA, as there is a connection between BAH and housing stipends for student-veterans provided by the Post-9/11 GI Bill.

Impact of PCS Orders

The challenge of finding safe, affordable, and available housing is further exacerbated during PCS moves. Military families often have a limited timeframe to secure housing in new locations, and the high cost of housing can make this process even more stressful. Families may have to compromise on quality or safety, or face long commutes to military installations to find affordable housing. This significantly impacts quality of life and overall well-being, and likely has a negative effect on retention.

Add Your Voice

The efforts to restore BAH to 100% are crucial for the financial stability and well-being of servicemembers and their families. August recess is a great time to act as lawmakers return to their states and districts to campaign and meet with constituents.

As MOAA members, it is our duty to advocate for these changes and support our servicemembers and their families. Use MOAA’s Legislative Action Center to contact your lawmakers and urge them to support the BAH Restoration Act and ensure a provision to restore BAH is included in the final version of the NDAA.