2 weeks Ago
Members of the military work hard to protect us and our country, so it only makes sense that they are entitled to comfortable housing accommodations. However, choosing their housing location and whether or not they want to buy or rent differs from how non-military buyers do it. Military members receive a monthly Basic Housing Allowance (BAH) that can be used to pay for whatever living arrangements they choose.
Depending on their financial situation and personal goals, they can either live on base or use the BAH to rent an apartment or buy a home off base. “The Basic Housing Allowance is in addition to military member base pay,” said Roni Haskell, Realtor with Roni and Co., Keller Williams Realty.
“How much they receive is based on their rank and dependents.” The good news is that according to Veteran .com, BAH rates in South Carolina increased in 2024 along with the national average, which increased by 5.
9%. The Joint Base Charleston, SC alone reported an approximate 23% BAH increase for soldiers with dependents in 2024. According to the Rates for Joint Base Charleston website , the current BAH rate starting for an E-1 service member without dependents is $1695, and with dependents is $2169.
In comparison, an E-9 personnel receives $2469 for those without dependents to $2766 for those with. Just like a non-military homebuyer, a military member who wishes to purchase an off-post home needs to factor in additional costs such as a down payment, homeowners insurance, the expenses of owning a house, and repairs when required, in addition to their debts. Haskell believes it’s beneficial for someone to buy a home that is non-military housing.
“If they live on base, their entire BAH is used,” she said. “If they live off base and only use a portion of their BAH, they still receive the full amount and can put the balance toward other expenses or save it for emergencies. Many single active duty members will get roommates or have a spouse contributing to the household income.
” In addition, she stresses that “if the military member accrues equity on their home, it is theirs to keep. It is an excellent way to invest and build wealth while serving their country.” However, military personnel should understand that where they are stationed can affect their BAH rate.
For example, according to a spokesperson from the JB Charleston SC, if someone receives BAH in Los Angeles and then does a permanent change of station to Charleston, their BAH rate will change to Charleston’s rate, even if that means they will receive less. Military members need to accommodate for any fluctuations in BAH when considering housing options. “Make sure to account for the escrow of taxes and insurance in addition to a mortgage,” she said.
“Active-duty military members also receive additional tax benefits from home ownership that are unavailable to civilians.” These are benefits that you need to apply for. “They may be eligible for the 4% tax rate as long as they have proper documents with active orders that the South Carolina Base is the permanent duty station, even though they may be a permanent resident of another state.
” To help understand the intricacies of the BAH for military personnel, Haskell suggests finding a Realtor who understands military housing and a lender familiar with available loan programs..
