Overseas Housing Allowance
Encyclopedia
An overseas housing allowance (OHA) is a United States military
entitlement
given to military servicemen and women living overseas. It is the overseas equivalent of the Basic Allowance for Housing
.
OHA is non-tax
able money paid on a monthly basis, and is equivalent to the amount of rent owed. Whereas servicemembers stationed in the Continental United States (48 contiguous states) are allowed to keep any additional allowance pay that they do not use for their rent, servicemembers do not receive their full complement of OHA if their rents are lower than the maximum allowable rates.
Each servicemember is allowed a set OHA rate, broken down by district, depending on where they are stationed. The rates are slightly higher for those servicemembers with families, otherwise known as dependents. There are three factors for determining the maximum amount of OHA allowed to the servicemember:
OHA is paid in the dollar equivalent of the rent due, and therefore rises and falls with monthly changes in the exchange rate.
Military of the United States
The United States Armed Forces are the military forces of the United States. They consist of the Army, Navy, Marine Corps, Air Force, and Coast Guard.The United States has a strong tradition of civilian control of the military...
entitlement
Entitlement
An entitlement is a guarantee of access to benefits based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with legal framework of a society...
given to military servicemen and women living overseas. It is the overseas equivalent of the Basic Allowance for Housing
Basic Allowance for Housing
Basic Allowance for Housing is a United States military entitlement given to many military members. It was previously called Basic allowance for quarters .-How It Works:...
.
How it works
OHA is given to servicemembers so that they can provide housing for themselves and their dependents (usually spouse and children). OHA is given when the member and their dependents do not occupy government quarters.OHA is non-tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
able money paid on a monthly basis, and is equivalent to the amount of rent owed. Whereas servicemembers stationed in the Continental United States (48 contiguous states) are allowed to keep any additional allowance pay that they do not use for their rent, servicemembers do not receive their full complement of OHA if their rents are lower than the maximum allowable rates.
Each servicemember is allowed a set OHA rate, broken down by district, depending on where they are stationed. The rates are slightly higher for those servicemembers with families, otherwise known as dependents. There are three factors for determining the maximum amount of OHA allowed to the servicemember:
- Pay gradePay gradePay grades are used by the uniformed services of the United States to determine wages and benefits based on the corresponding military rank of a member of the services...
(this is essentially synonymous with rank), the higher the grade, the higher the maximum OHA rate. - Location Overseas - BAH is intended to match the average monthly rent in the area where the member is stationed, thus more expensive regions (they are indexed online) receive a higher allocation of OHA. Depending on the status of the assignment (such as temporary duty, or an unaccompanied assignment) the OHA may be calculated where the dependents actually reside.
- If the member has dependents or not. There are two types or OHA, with dependents and without dependents. The rationale behind this is that a single person doesn't need as much room as a couple or a family. The number of dependents does not affect a servicemember's OHA (a member with a spouse and no children and a spouse and one or several children receive the same amount of OHA).
OHA is paid in the dollar equivalent of the rent due, and therefore rises and falls with monthly changes in the exchange rate.
Additional Allowances
Frequently a "utility allowance" also accompanies OHA. This is usually a flat rate given to the member to cover the cost of utilities, regardless of the actual amount. In certain countries, an additional Move In Housing Allowance (MIHA) is allotted to cover the cost of cleaning, maintenance, repainting, and general refurbishing of the rental unit.See also
- Basic PayUnited States Military PayUnited States Military Pay is money paid to members in the United States Armed Forces. The amount of pay may vary by the member's rank, time in the military, location duty assignment, and by some special skills the member may have.-Pay versus Allowance:...
- Leave and Earnings Statement (LES)Leave and Earnings StatementA Leave and Earnings Statement, generally referred to as an LES, is a document given on a monthly basis to members of the United States military which documents their pay and leave status on a monthly basis....
- Cost of Living Allowance (U.S. Military)