2023 Bah Rates - The 2023 Basic Allowance for Housing, or BAH, rates for service members will increase by an unusually large rate of 12.1% due to rising housing costs across the country, although some troops have already started receiving their new rates due to temporary conflicts this year.

Prices will rise, on average, in 291 of the 300 housing areas (MHA) in the U.S., stay the same in four, and fall in five at the start of the new calendar year. The Department of Defense has estimated that it will pay approximately one million service members a total of $26.8 billion in BAH by 2023.

2023 Bah Rates

2023 Bah Rates

The "significant increase" in average prices reflects the "exceptional market conditions in many areas across the country over the past year," said DoD spokesman Maj. Charlie Dietz in a statement. "While average BAH rates have increased significantly, different rental markets have different market trends, and the 2023 BAH rates reflect those differences in local market conditions."

The Dod 2023 Bah Rates & Other Efforts Are Fighting Inflation For Troops

Some places where prices fell include Lake Charles, Louisiana, 10%; Alamogordo, New Mexico, 4%; Long Island, New York, and Enid, Oklahoma, 2%; and Buffalo, New York, by 1%.

Twenty-eight MHAs received a temporary increase in BAH on October 1, 2022, as part of an effort announced by the DoD to reduce military financial burdens amid rising inflation. The new prices in those areas will not change from the temporary increase, Dietz said.

That's an increase from 2022 rates, which fell in some areas after the 2021 temporary increase ended.

The DoD calculates BAH rates based on a uniformed service member's duty station, pay rate and dependent status, and the cost of housing in each area's market. BAH is paid only when government housing, such as military housing, is not provided or when the service member has dependents.

Temporary Hike In Bah Imminent For Some Troops, Families Caught In Housing Crunch

The BAH increase comes as service members await the largest pay increase in years, proposed in Congress's fiscal 2023 National Defense Authorization Act. Expected to pass this month, the plan provides for a 4.6% increase. A separate measure proposed in the House of Representatives would provide an inflationary bonus of at least 2.4% to service members and Department of Defense civilians who earned less than $45,000 in 2023 but did not appear in the final bill.

The average increase of 12.1% from 2022 to 2023 represents another increase more than usual. 2022 growth was already up 5.1% from 2.9% in 2021.

The department supports BAH in the area of ​​local rent and utility costs for various types of housing. Any change in one or more of these factors affects the BAH rates for that area.

2023 Bah Rates

In areas where the BAH rate decreases from year to year, service members who already live there will have their BAH rate protected because of the protection of each rate. The policy prohibits reducing the BAH rate as long as the service member's status is not changed.

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After the congressional change, BAH rates were gradually reduced over time to 5% below actual housing costs. That process was completed in 2019. Nearly 1 million soldiers receiving BAH will deduct $82 to $184 from their monthly housing costs by 2023. Prices will remain at 95% of the base cost going forward.

Another change approved by Congress involved renters insurance in the BAH calculation. That means the military is expected to pay out of pocket for such insurance. Private housing companies no longer offer that protection as part of existing leases.

The GI Bill Monthly Housing Allowance (MHA) is usually the same as BAH for an E-5 with dependents. The MHA is based on the ZIP code of the school attended by the service member. Unlike BAH, which changes Jan. 1 each year, GI Bill MHA August rates change. 1, the beginning of the academic year. Learn more about GI Bill MHA rates.

Wages and benefits are constantly changing. Make sure you are up to date with everything you have achieved. Sign up to receive updates on all your earnings and benefits, delivered straight to your inbox.

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This story was updated on December 23, 2022, to clarify that prices were changing "on average" in some areas.

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2023 Bah Rates

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VA Benefits: Disability Compensation Disability Compensation is paid to veterans disabled due to an injury or illness that occurred or worsened during service...Continued inflation is affecting families across the United States, and the military community. As the cost of living rises, families are looking for new ways to make money and survive in these tough economic times. Basic Allowance for Housing (BAH) provides financial assistance to help military families pay for housing and other living expenses. The US Department of Defense (DoD) addresses the challenges facing military personnel and their families and announced the 2023 BAH increase and increases in other programs aimed at helping military families overcome financial hardship.

2023 Bah Rates

On September 22, 2022, the DoD announced immediate and long-term measures to help strengthen the economic security and stability of service members and their families.

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Included in the announcement are changes to the 2023 BAH rates, changes to the Permanent Change of Station (PCS) process, investments in child care and child development, and additional employment assistance for military spouses.

Yes, the increase in the BAH rate in 2023 will increase the President's budget by 4.2% for those serving in the US military.

The proposed 2023 BAH rates will begin on January 1st. The purpose of this review and measure will be to automatically increase 2023 BAH at 28 Military Housing Areas (MHAs) that are experiencing rental housing cost increases of more than 20% above 2022 BAH levels. This includes:

In these states, the automatic 2023 military BAH increase will go into effect in October 2022.

New Bah Rates!

The Army's 2023 BAH is expanding, and expanding to other branches, as part of the DoD's efforts. Costs are increasing in many areas. Here are some ways military families can expect support:

Military families can expect lower prices at commissaries with price cuts aimed at helping them save 25% on grocery bills compared to local markets.

Those who qualify for Basic Needs Allowance (BNA) will be paid from January 2023 to help dependent Service members.

2023 Bah Rates

Housing costs and transport costs can increase. Aside from the increase in BAH rates for 2023, military families can expect more help along the way.

Army To Implement 60 Day Window For Soldiers To Provide Supporting Documents For Bah Rates

The DoD is looking to improve the process for Permanent Change of Station (PCS) changes, including improving Military OneSource online tools for relocation and housing.

In October 2022, a service member will be able to take advantage of up to 60 days of TLE if they are in a Military Housing Area with a housing shortage.

To further reduce PCS costs, the DoD increased the Discharge Allowance (DLA) for service members E-1 to E-6. To avoid out-of-pocket costs, all DLA payments will be paid one month before the automatic transfer date which starts in October 2022.

The DoD is making additional investments in children in the form of an expansion of the Child Development Program (CDP), Military Child Care in Your Area, and the expansion of a pilot program aimed at assisting with the cost of child care at home. .

Bah Differential Rates

The DoD will help accelerate the creation of seven additional work permit computers with organizations across multiple industries to help spouses transfer the need for licenses or credentials.

To help military spouses develop practical careers, the DoD expands employment opportunities for military spouses through non-competitive direct hiring authorities.

Efforts are being made to expedite employment to provide military spouses with paid employment a variety of career options

2023 Bah Rates

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