BAH is a fundamental component of the military pay package designed to offset housing costs for Service members renting off-based on the local market economy. By law, BAH is determined based on “the costs of adequate housing for civilians with comparable income levels [to military Service members] in the same area.”
BAH rates are computed each year using median market rents and average local utility expenditures (electricity, water/sewer, and heating fuel) for civilians in each local market area. BAH rates fluctuate with annual changes in these costs.
No. While BAH distinguishes between with-dependent and without-dependent status, the with dependent compensation is based on comparable civilians using average family size. BAH rates do not increase with increases in the number of dependents.
No. BAH is designed to only address the cost of housing in each area. The CONUS COLA program addresses non-housing costs of living. The fundamental goal of CONUS COLA is to compensate for the high cost of living and is payable to uniformed service members based on duty stations in the Continental U.S (i.e., the 48 contiguous states and DC). CONUS COLA is based on grade and dependency status (with or without).
Duty station is the basis for BAH so that members are compensated for the typical housing cost near the member's duty location. Once the duty station is known, the BAH compensation is fixed, regardless of where the member lives. Using a member's residence location as the basis for BAH would create warped incentives for service members. For instance, such a policy would incentivize members to choose residence location based on BAH rate. In some cases, this could lead to members choosing to live further from their duty station simply to receive higher BAH. In other cases, (e.g., if members chose to commute from/to a lower cost area) BAH rates would be lower, removing the ability of Service members to economize on their BAH. The Services decided to base the allowance on duty location with the full knowledge that members would still be free to live where they choose, but that this decision would not affect the BAH amount.
*NOTE: Depending on the orders an RC member will receive BAH based on HOR
You can calculate the amount using the BAH calculator https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/
The soldier/unit needs a DA 5960, Mortgage Statement or Lease agreement/rental agreement (notarized), utility bill (with soldier’s name on it). Commander must review, confirm soldier lives at said location, and sign 5960. The unit must ensure ALL documents are uploaded into IPERMS.
*NOTE: Ensure address on soldier’s orders must match address on 5960 prior to orders being issued (and other supporting documents). Soldiers may now complete a 5960 in IPPS-A, however, the above requirements still apply.
No. BAH is based off the address that is in your published order. You will continue to receive the same rate until your order has ended.
*NOTE: Orders will not be amended to change HOR.
The soldier will need to provide the unit with the lease agreement/mortgage statement from that period, a utility bill with the soldier’s name on it from that period, the pre-ship checklist (from recruiting and retention), bank statements showing payment of lease/mortgage, or sending money to a person paying the bill on soldiers’ behalf.
*NOTE: USP&FO-NY reserves the right to ask for any supporting documents that they deem necessary to verify claim. CASH RECEIPTS are NOT an acceptable form of proof of payment.
BAH is based on the ISSUE date of an order, not the dates of duty. If the issue dates aren’t consecutive, the soldier may not be authorized the entitlement.
References:
Once your pay account has been established by your payroll office and your first payment system has been issued, your MyPay account is established, and you will automatically be sent a temporary Password. Generally, it will be four weeks from the time you receive your first paycheck to when you receive your temporary Password in the mail. Once you receive your temporary Password, you must customize it within 45 days. If you do not customize the Password, it will expire, and you will have to request a new one. Upon initial log-on, use your full SSN and the temporary Password provided to you. The system will prompt you to customize your Login ID and Password. If you have any inquiries or need to make pay changes prior to your MyPay account being established, you must contact your servicing payroll office or Customer Service Representative.
A Direct Deposit Account can be established through MyPay or an SF 1199A Direct Deposit Form can be sent through the member’s unit to the USP&FO for processing. The form must be submitted with the member’s SSN indicated and can either be completed by the Bank Representative or a voided pre-printed check with complete name/ address can be used in lieu of the Financial Institution’s certification. Note: updating MyPay does not update your account information, your account information for travel reimbursement. You must send the travel section an SF 1199A directly.
A member must complete a DA Form 5960 and provide a Marriage Certificate or Divorce Decree which must be submitted to the Personnel Section for processing. To update an address a member must complete a DA Form 4187 and submit to the Personnel Section for processing. The members must ensure that it is completed. It is critical that these types of changes are completed in a timely manner because this could affect the members in a very negative way if they are not.
Held Pay Status occurs when a payment is returned due to issues like a bounced check, an incorrect address, or a closed direct deposit account. Your funds will be held until you establish a new, valid Direct Deposit account. If a new account isn't set up promptly, the funds will be returned to the Treasury after 90 days. To receive these funds, you will then need to file an Out Of Service Claim.
To avoid Held Pay Status: When opening a new bank account, do not close your old account until you've confirmed your payment has been successfully deposited into the new one.
Please Note: As Stewards of the government funds, the USP&FO reserves the right to require service members to produce additional supporting documentation to substantiate pay and entitlement requests.
