PROVIDENCE – Sailors and other service members in six locations, including Providence and Newport, received a temporary raise in their Basic Allowance for Housing (BAH) as part of the U.S. Department of Defense initiative to address higher costs of living, specifically in cities whose housing prices have outpaced the usual hike in stipend rates.
The increases took effect Oct 1. and will continue through Dec. 31.
Some Navy personnel will see increases of as much as $1,260 per month in their housing stipends, depending on their rank and whether they have dependents. Overall, 28 military housing areas were identified by DOD where the cost of rental housing increased by an average of 20%, the metric being used for qualification.
For example, an enlisted service member based in Newport with dependents saw an increase from $2,013 per month to $2,748. An officer at the will see their monthly payment jump from $3,468 to $3,816, according to the pay scale.
The temporary bumps will end after Dec. 31, when new allowance rates will take effect.
A September press release by DOD said the department “is making every effort to ensure rates remain as stable as possible and will not vary significantly from the new 2023 rates.”
To “ease the burden” of permanent moves, the services will also be covering lodging expenses for 14 days for relocations within the U.S., with up to 60 days for moves into markets with housing shortages, starting in October, the department said.
Tammy Bass, a realtor with Newport-based Hogan Associates, who has helped military personnel to find housing on Aquidneck Island, said finding housing has become a challenge due to limited inventory, inflation, and the rise of both short-term rentals and borrowing rates.
“[The BAH raise] is going to help some, but we still have the inventory issue,” she said, noting how many military service members she works with who are stationed in Newport end up taking housing that is smaller and more expensive than they had anticipated. “People are having to be a little flexible. Yearly unfurnished rentals are hard to come by.”
Bass, who has personal experience with the plight of the housing search for military families – her husband is a retired sailor – said the dual issues of low housing stock and rising costs go hand-in-hand.
“It’s a combination,” she said. “Prices have gone up on rentals because of the inventory shortage. But many landlords try to stay within the [BAH] rate.”
However, costs related to maintenance are rising in concert for property owners, too. And many are now opting to downsize or stay in their homes rather than offer them up to tenants.
“Some, perhaps out of necessity, ask for more with their rental rates,” said Bass.
The Navy said in the press release that housing allowance payouts to service members are expected to increase by an estimated $206 million in 2022.
