Today, the Department of Defense (DoD) released the 2011 Basic Allowance for Housing (BAH) rates. The rates, which go into effect Jan. 1, 2011, determine the amount an active duty servicemember or veteran attendnig college with the Post-9/11 GI Bill will receive to pay for living expenses. The 2011 rates will be an average of 0.59 percent lower than the 2010 rates. However, due to the individual rate protection provision, the change many servicemembers will see is actually an average increase of 1.1 percent, according to the DoD.
The individual rate protection law ensures that those who are already registerd and assigned to a location will not see a decrease in their BAH rates. This ensures that those who are already committed to leases and the like will not see a decrease in their benefits, even if the housing costs in their area have gone down. Decreases in rates for a particular area will only really apply to those who are moving into that location.
Under the 2011 rates, a typical junior servicemember with dependents will find that his/her BAH is approximately $39 per month higher than last year. Senior non-commissioned officers with dependents, on the other hand, will receive about the same BAH as last year.
BAH ammounts are based on the median current market rent, average cost of utilities like electricity and water, and the average cost of renter's insurance in the area. The total housing costs a servicemember receives are based on one of the six housing profiles that are calculated for his/her area. The profiles are based on dwelling type (house, apartment, etc.) and number of bedrooms. This information is combined with the servicemember’s pay grade to determine his/her BAH amount. In 2011, it's expected that an estimated $19 billion will be paid to over 1 million servicemembers.
For more information, read the full Department of Defense press release: Department of Defense Releases 2011 BAH Rates