Any reason why the BAH rates are going down for some zip codes and not others?

SSG(P) Private RallyPoint Member — Tue, 05 Feb 2019 21:12:03 -0500

Fort Sam Houston saw a $200 decrease for E5 and $90 for E6. Any reason or logic behind this stupidity? There are only so many housing units on base for people to live in and the housing market keeps going up. Are we to live in hurricane relief tents?

Response by LTC Jason Mackay made Feb 5 at 2019 10:06 PM

LTC Jason Mackay — Tue, 05 Feb 2019 22:06:36 -0500

SSG(P) Private RallyPoint Member the ebb and flow of BAH is always cryptic. The volume of base housing is only to support 30% of the installation population.

The rates are based off rentals and utilities in that area, not mortgages. Note that you are grandfathered at the higher rate if you are already drawing BAH in that locality. The rate is designed to cover 80% of rental and utilities.

https://www.defensetravel.dod.mil/Docs/Fact_Sheet_BAH.pdf

Fact_Sheet_BAH.pdf

Response by Sgt Aaron Kennedy, MS made Feb 6 at 2019 7:38 AM

Sgt Aaron Kennedy, MS — Wed, 06 Feb 2019 07:38:40 -0500

They equate rank with physical space (square footage). A certain percent of rental units in that geographical location meet that requirement (give or take x%). They use the average to determine how much that square footage should cost and assign BAH accordingly.

The issue you run into is that square footage differences between ranks is not always "intuitive" and "cost per square foot" is not necessarily linear.

Using made up numbers... An E5 (with 1 dependent) may rate 1000 square feet (standard apartment), while the E6 would rate a 1200 square feet. Those apartments could be next door to each other. At 100% coverage the larger apartment may only cost $50/month more.... or it might cost $300/more... this means BAH rates are going to look very weird when they are adjusted.

Response by MSG Private RallyPoint Member made Feb 6 at 2019 1:51 PM

MSG Private RallyPoint Member — Wed, 06 Feb 2019 13:51:12 -0500

This is the non-sugarcoated answer, as to why the BAH E-5 rate in particular, went down. It’s because the Post 9/11 G.I. Bill, pays full-time students BAH, at the E-5 rate.

Response by CW5 Private RallyPoint Member made Feb 8 at 2019 10:48 AM

CW5 Private RallyPoint Member — Fri, 08 Feb 2019 10:48:31 -0500

Consider the fact that you will continue to receive the previous rate should it go down while you are assigned there.
You will also receive an increase that will never reduce as well in subsequent years if the rates go up.