BAH rates for E5 and below w/o dep are going down in '09 in my area. Luckily, I've already PCS'd here in '08 so my rate won't be affected. What I don't understand is how it became cheaper for us to live when the BAH rate for every other rank goes up or stays the same. Even in similar age groups.. O-1's rate went up, even though they already make more money.. How are these rates developed?
Amber 777: "Just a reminder for those whose BAH is going down: you are covered under the Individual Rate Protection. Rate protection continues unless your status changes due to any of these 3 things: PCS, Reduction in pay grade, or change in dependent status. (That is in the BAH primer as well.)"
As said before, this change does not affect members that are presently stationed in the areas affected, if their status remains the same.
In the old days we were paid a certain amount for housing and that was it, you made up from your base pay. If the BAH rates go down, then you have cut back on spending or even do away with something.