2014 Basic Allowance for Housing rates will increase an average of 5 percent when they take effect on January 1, 2014. An estimated $20 billion will be paid to approximately one million service members during the year.
Ever wonder how they get the BAH Rate? Three components are included in the BAH computation: median current market rent; average utilities (including electricity, heat, and water/sewer) and average renter’s insurance.
Total housing costs are calculated for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. BAH rates are then calculated for each pay grade, both with and without dependents. An estimated $20 billion will be paid to approximately one million service members in 2014.
Get more details about the rate changes and how they will affect you, http://go.usa.gov/ZgHw.