BAH: How Rates Affect Landlords Around Monterey County

kyle@montereypm.comGeneral BlogLeave a Comment

monterey military housing

Monterey County’s rental market is made up of renters from all over the world. A large portion of those renters are here with the Military going to Navy Post Graduate School and the Defense Language Institute. Each of these military members is given a BAH or Basic Allowance for Housing.

According to the Department Of Defense the BAH “provides uniformed Service members equitable housing compensation based on housing costs in local civilian housing markets within the United States when government quarters are not provided. BAH rates adjust by location, pay grade, and dependency status.” This means that active duty military members can live off base without eating into savings and coming out of pocket. This added incentive to move off base increases demand in rental markets surrounding military bases and the market rates adjust accordingly.

These rates fluctuate year in and year out. Every time the BAH adjusts there is a corresponding change in market rates. Renters with an increased budget enter the housing market and begin competing for the limited housing in the area.  It’s important to understand the local BAH rates in order to maximize the return on investment properties in these military markets.

Here is a link to the BAH Calculator.  http://www.defensetravel.dod.mil/site/bahCalc.cfm

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