The rate of Basic Allowance for Housing, a United States military privilege where the government gives an allowance to cover the cost of rent, is rising by an average of 5.1% starting in January.
According to Military.com, the Pentagon announced the 2022 rates, which give many service members more money to keep up with the cost of living.
- An estimated $25.6 billion will be paid to military service members, according to the Department of Defense.
- These rates were temporarily increased from Oct 1. to Dec. 31 due to rising rents and lack of supply of rentals. Troops in 56 geographical locations experienced a 10% to 20% increase in their allowance. Those rates will be replaced by the rates for 2022, per Military.com.
- Allowance amounts will vary by grade and dependency status, ranging from $74 to $168 monthly for 2022, said the Department of Defense.
- “The Department is committed to the preservation of a compensation and benefit structure that provides members with an adequate standard of living to sustain a trained, experienced, and ready force now and in the future,” they said in a statement.
Per Military.com, the rates are tied to the rental housing market, and service members are usually protected from decreases if they maintain their eligibility.