By Megan Harless
Army Veteran, PCS Advocate
2021 Armed Forces Insurance® Red River Army Depot Spouse of the Year
Quarter two of 2024 was a busy time as the Military community was gearing up for peak PCS (permanent changing of station) season. Earlier this year, the service branch senior enlisted advisors testified before Congress that the basic allowance for housing (BAH) that is currently at 95% is not enough.1 The House Armed Services Committee (HASC) has passed H.R.8070 (Servicemember Quality of Life Improvement and National Defense Authorization Act and the National Defense Authorization Act (NDAA) for 2025, which would restore the BAH to 100%.2 This is a huge win, as Military families have continued to pay out of pocket in the recent years, making affordable and safe housing hard to find. When the NDAA is finally signed by the President, we should see more money received by service families to find the home that fits their needs.
Additionally, we have seen many more families interested and taking part in assumable VA loans,3 which are well-suited to Military families living in difficult housing markets like the Washington DC area. Some Military home sellers are advertising on social media that their VA mortgages are assumable so that potential Military buyers know they could get a lower interest rate with the purchase of their home.
In my experience living at Fort Bliss and Fort Leavenworth, off-post rentals tend to be priced at or above the BAH rate. This is an issue because there are limited on-post housing options, and these locations have schoolhouses. This means that regardless of their rank incoming to a schoolhouse location, those families may be paying more out of pocket to cover the rental cost.
On the PCS (moving) side of things, HomeSafe Alliance (HSA) is finally starting first moves for the Global Household Goods Contract (GHC).4 Under GHC, HSA aims to help improve the relocation process for Defense Department and Coast Guard personnel and their families.5
The current plan is for HSA to handle up to 50 local moves (moves within 50 miles of the origin location), and by September begin interstate moves. There have been many concerns about this program since it was first awarded, with the biggest being that there is a lack of faith and trust in the company from the moving industry and Military family community side. We’ll be on the watch to see what happens.
Additionally, we have also begun to see a shift in Military families making the change to moving themselves through the process known as PPM (personally procured move). Families are incentivized to move themselves when authorized with the ability to potentially pocket some money and have a greater hand in the process.
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References:
1 Enlisted Chiefs Want BAH to Cover 100% of Housing Costs (airandspaceforces.com)
3 VA Mortgage Assumptions Rise Steeply in 2023 | Inside Mortgage Finance