BAH rates change every year - What are BAH rates in Hawaii in 2020?

Dated: April 26 2020

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BAH rates change every year ... most of the time they go up, but sometimes they go down.  

The Department of Defense has published the Nationwide BAH rates — they can be found here:

2020 BAH - With Dependents (Hawaii is highlighted on page 2)
2020 BAH - Without Dependents (Hawaii is highlighted on page 2)

 
Many believe that with BAH increases, come Oahu rental property increases.  It is important to view this with a supply and demand perspective.  BAH is calculated based on location, service member’s rank, and service member’s dependency status (with or without dependents).  The total sum is meant to provide for housing, a large portion of utilities utilities and renter’s insurance in the location of the service member.  As the cost of living in Hawaii increases for all of us, so also does BAH.  Additionally, as rental housing becomes more scarce (supply), the demand increases, and so does market rents.  I never recommend to Owners to increase their rents based on increases in BAH.  I recommend setting rents at market rates, so that everyone benefits (owners, community, etc.).  To read more about how I set market rents, click here.
BAH can also cover mortgages — a fantastic way to spend a tax-free allowance.  An average mortgage (principal, interest, insurance, property tax – 0% down) for a $550,000 home on Oahu (0%) down, is under $3,000.  This means that many service members may be able to afford to purchase a house, and begin building wealth through real estate.  BAH rates rise because housing prices rise, and utilities rise — as demand for clean, well-maintained rentals continues to be steady, you’ll have no trouble finding a tenant once you PCS.  Or, you can sell, take your equity and purchase a home in your next duty station (where allowances may not be as high) and a large down payment will be helpful.
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Kasandra Shriver

Kasandra Shriver started her career in real estate 2012, and joined HomeQuest, Realtors LLC in 2014 where she is a REALTORĀ® Broker. She is a homeowner and investment property owner and has both the ....

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