Beginning January 1st, 2022, military service members will be getting a 5.1% Basic Allowance for Housing (BAH) rate increase.
The DoD announced the rate increase on December 15th, and it is considerably higher than the 2021 2.9% increase.
Each year the BAH tables are released in mid-December.
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.
The increase in BAH is an average, and actual rate increases will still be determined based on your individual location.
To see what your BAH rate will be, you can visit the Department of Defense’s calculator here.
The 2022 BAH rates are based on geographic duty location, dependency status, and your pay grade.
It is important to note that BAH is only payable when a service member has dependents or when government quarters are not provided.
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BAH rates are based on the combination of local costs for rent and utilities for various housing types. Any fluctuation of one or more of those factors in a given location will affect BAH rates for that location.
Any active duty service members who see a drop in BAH for their locality will have their BAH protected, thanks to "individual rate protection," which was adopted by Congress over a decade ago. Individual rate protection prevents the decrease of a BAH rate as long as the status of a service member remains unchanged. That means if you don't transfer to another unit, your BAH won't decrease, it can only increase.
According to the DoD, approximately one million service members will receive BAH payments in 2022, and the amount will total $25.6 billion.
BAH is meant to cover 95% of housing expenses while service members pay the remaining 5% out of pocket.