Here’s some good news for the new year, and it’s not even here yet! Some military families will see additional money in their paychecks in 2013. The annual adjustment for BAH and BAS were recently announced. BAH and BAS? While you may not score points in Scrabble with either word, these are important acronyms for military families. BAH means Basic Allowance for Housing, and BAS is the Basic Allowance for Substance.
BAH is a nontaxable allowance provided to eligible service members. The allowance varies worldwide and is based on the median current market rent, average utilities (including electricity, heat, and water/sewer), and average renter’s insurance. BAH is also calculated for each pay grade, both with and without dependents. For 2013 the average increase in BAH for military families is about $60 per month. You can calculate your BAH rate for 2013 before it hits your service member’s paycheck. Remember, BAH is based on your service member’s duty station, which may not be the same zip code where you live. (There are some exceptions to this guideline.)
I used the calculator and noticed the BAH rate for 2013 for our family was actually less than our 2012 rate. Yuck. But not to panic. A key feature of the BAH program is rate protection. This means our BAH will not decrease. This ensures military families who have made long-term housing commitments in the form of a lease or contract are not penalized if the area’s housing costs decrease. However, new families assigned to the area will receive the 2013 rate.
BAS is also a nontaxable allowance and is intended to replace the rations historically provided to service members. BAS rates are tied directly to the United States Department of Agriculture’s calculation of the increasing price of food. This not an allowance to feed your family. It is an allowance to offset the cost of food for the service member only. Enlisted service members will receive $352.27 a month, up from $348.44 per month in 2012. Officers will receive $242.60 a month, up from $239.96 in 2012.
Is this what you expected for the new rates? Are BAH and BAS allowances a key part of your family’s budget?