Frequently Asked questions I've heard there's going to be a new kind of housing allowance. BAH will be based on rental costs by pay grade, dependency status, and location. The intent of the new allowance is to provide uniformed service members housing compensation based on comparable civilian costs of housing.
Civilian comparability considers both salary and location.
The 1997 National Defense Authorization Act contained a provision tasking DoD and the Services to reform and streamline our current flat rate BAQ and VHA into a single allowance based on rental costs by location. As long as the Congress passes the 1998 Appropriations Act, the new allowance will go into effect as planned. If the Appropriations bill is not approved or signed, VHA and BAQ will remain in effect for 1998. No, we will move to the new system gradually. Congress has given us the authority to phase in the new allowances over a 6 year period.