Military Housing Voucher - Military service is hard work that requires sacrifice. The state, on the other hand, offers unique benefits to volunteer work. One of the biggest benefits is that the military helps pay for some or all of your living expenses, although it's not as simple as it may sound.
Although some civilians unfamiliar with military life assume that everyone lives on base, this is rarely the case. Except in some areas, service members also have the option to rent - or even buy - equipment from a local economy. Each option has its pros and cons, and the decision largely depends on personal preference and budget.
Military Housing Voucher
Army housing allowances vary depending on where you live. Depending on whether you live on or off base, you can get a free apartment, but no extra money for your salary, or you can get a housing allowance and secure the apartment yourself.
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If you decide to live on base, the apartments are state-owned or privatized. Once owned by the government, the Ministry of Defense owns and manages the property. Instead of receiving Allowance for Housing (BAH), a service member pays no rent. Members serving alone or without a caregiver may choose to live in barracks, which are rent-free but may require shared rooms or bathrooms. Some branches require individual servicemen below certain ranks to live in barracks.
If the main apartment is privatized, as is often the case today, the government rents the apartment to a private company. This company acts as the owner and manager of the property, and you get BAH from your paycheck and use it to pay your rent and utilities.
Most places also have the option of living off base. The government pays for your apartment up to a certain amount, giving you the freedom and flexibility to find the home and location you want, but it can cause additional headaches.
Some prime apartments have long waiting lists, so families have no choice but to live on a base-by-base basis. If you get on the waiting list and start living off base but are notified that an installation is available, the Army will pay the cost of your move to the base if you accept it. But they do not cover the costs if you decide to move from the institution to the local economy or if you move from one apartment to another. It's important to keep these guidelines in mind when planning, as deposits and transfer fees can add up.
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Before diving deeper into housing options, it's important to know how housing differs if you're based in the continental United States (CONUS) or outside of it—for example, overseas (OCONUS).
While in CONUS, you will receive a monthly BAH payment as part of your salary unless you live in primary government-owned housing. The amount you receive depends on your position/salary grade, your geographic location and whether you have dependents. It is up to you to use this money to pay your rent and any grants if you have money left over.
If you can find a place that pays less than BAH, you can save the difference, so it can be a smart option in affordable areas. For example, if your BAH rate is $1,200 but your rent is $1,000, you still get the extra $200 and can use it however you want. Conversely, in more expensive areas, you may have to pay a portion out of your own pocket. Although BAH is calculated to cover rent but not mortgage payments, some service members choose to buy homes (often with VA loans) to build equity. Just remember that BAH does not take into account the costs of owning a home, such as property taxes or insurance.
Things work differently for those stationed outside the United States, instead of BAH, service members receive Overseas Housing Allowance (OHA). The amount of this allowance is still determined by grade, location and dependent position. While service members receive a monthly stipend/recurring maintenance allowance, the cash rent does not come to a set amount by default, as BAH does.
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Instead, service members are paid a maximum monthly rent. The military base must inspect the property to make sure it meets American housing standards and review the lease. Once approved, the military will reimburse the service member the exact amount of the rental up to the OHA maximum. In this overseas system, service members don't get to keep the difference if their rent is less than their OHA amount, so it's important to review your finances if you're counting on pocketing extra money into the state each month.
Some military families rave about living in their facility, while others absolutely hate it. Housing options and base amenities also vary greatly from base to base. Sometimes the waiting lists for prime apartments are so long – they can last up to a year – that this is not an option, even for a while.
While living on base is the easiest and most affordable option for some, others prefer to use their BAH to rent an installation.
Those who serve in the National Guard or Reserves have different housing allowances because they often serve part-time in the civilian world while living and working.
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If a National Guard or Reserve service member is activated on Section 10 or Section 32 for up to 30 days, they will receive a separate type of BAH during this time, called BAH RC/T. This is a housing benefit that does not vary by location; it is based on the average national housing cost. Those active for more than 30 days are entitled to the same BAH as other full-time service members for the duration.
Whether or not you live on base is a very personal decision. Both options have many advantages and headaches, but the right choice depends on your finances, personality and preferences. However, as with anything in military life, sometimes the decision is out of your hands.
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