Despite what you might have heard, Basic Housing Allowance will be increased in 2015! Overall, BAH is increasing by 0.5%. This is great news for military families that dream of Hawaii homeownership.
How BAH allowance amounts are derived in reality has nothing to do with housing expenditures like mortgage costs. BAH allowances are actually based off rental market and utility pricing data. As local rents increase, so does the BAH allowance.
Who Benefits the Most?
Military families who benefit the most in Honolulu County (Oahu, HI) are at grades of E-4 to E-6 & O-1 to O-3 with dependents.
Grade 2014 2015
E-4 $2,607/month – $2,922/month
E-5 $2,709/month – $2,944/month
E-6 $2,952/month – $3,048/month
O-1 $2,736/month – $3,000/month
O-2 $2,946/month – $3,045/month
O-3 $3,600/month – $3,768/month
Oahu’s increased BAH rates make Oahu homeownership that much more of a reality for our Active Duty families. E-4’s with dependents will be able to purchase and invest their BAH into Oahu homes they weren’t able to before.
Coupled with the 0% down VA home loan, Oahu’s military homebuyers have an enhanced opportunity to invest in Oahu’s lucrative real estate market. According to the Honolulu Board of Realtors, historical median sales price data for the past 30 years has shown home values to nearly double every 10-15 years.
Mahalo & Happy House Hunting!