GI Bill Housing Allowance Q&A
If you qualify for the Post-9/11 GI Bill, you are entitled to a housing allowance paid as part of your VA education benefits. This is known as MHA, or Military Housing Allowance, and it’s paid at the rate equivalent to an E-5 with dependents.
Whether you qualify for the full MHA or not depends on whether you are a full-time or part-time student, and whether you attend classes in person or online. Here is a list of common questions and answers about both the Post-9/11 GI Bill housing allowance and the active duty Basic Allowance for Housing, which differs in some respects from the GI Bill option.
Q&A: GI Bill Monthly Housing Allowance (MHA)
What are the main types of housing benefits for military personnel and veterans?
The Basic Allowance for Housing (BAH) is for those currently serving in the military, and the Monthly Housing Allowance (MHA) for veterans who are using their GI Bill education benefits.
What is the purpose of the Monthly Housing Allowance (MHA) under the GI Bill?
The Monthly Housing Allowance (MHA) under the Post-9/11 GI Bill is an education benefit. Its primary purpose is to provide financial support for living expenses, including housing, for eligible veterans and their beneficiaries while they attend school or pursue approved job training programs. It’s part of the larger GI Bill framework that aims to help veterans adjust to civilian life by funding their education.
How did the GI Bill housing allowance evolve?
The original GI Bill, from 1944, helped veterans after World War II with various benefits, including education. While it provided some living money, the modern MHA directly links to housing costs to support veterans attending school.
The Post-9/11 GI Bill, created for those who served after September 11, 2001, greatly expanded these education benefits to include the MHA. Later, the “Forever GI Bill” in 2017 further expanded eligibility for these benefits and the duration of coverage.
How is the MHA rate calculated?
MHA is similar to the BAH rate for an E-5 with dependents. This applies regardless of the veteran’s actual military rank or family status. This standard rate is tied to the ZIP code of the school’s main campus.
The amount of MHA a student receives also depends on their “rate of pursuit,” meaning how many classes they are taking compared to a full course load. For example, if a student takes 80% of a full course load, they would receive 80% of the full MHA.
What is the MHA for my zip code?
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How often do MHA rates change, and when do they take effect?
Rates typically change once per year, but occasionally there are factors that may force a recalculation. Unlike BAH, which changes on January 1st each year, MHA rates usually change to align with the academic year, which typically runs from August 1st to July 31st. This timing helps students plan their money for the entire school year.
Is the MHA the same for online learning as it is for in-person learning?
No, the MHA is different for purely online classes compared to in-person learning. For entirely online courses, the MHA is based on half of the national average for MHA, with a maximum limit. However, if a student takes at least one class in person, even if other courses are online, they might be eligible for the higher MHA rate based on the school’s ZIP code.
How does MHA work for veterans in training programs or apprenticeships?
For veterans participating in certain on-the-job training or apprenticeship programs, the MHA payment structure is adjusted during the training.
It typically starts at 100% for the first six months. The rate may decrease over time as the veteran progresses through their training program over subsequent six-month periods. This gradual reduction acknowledges that as a veteran gains experience, their potential earnings might increase, reducing the need for full housing support from the GI Bill.
What is the main reason for the differences in how BAH and MHA are adjusted?
The main reason for the differences in how BAH and MHA are adjusted is their fundamental purposes and the different groups of people they serve. BAH is for active-duty service members and is a component of their ongoing pay, designed to cover current living expenses. MHA, on the other hand, is an educational benefit for veterans, designed to help them transition to civilian life and pursue their academic goals.
How does the application of BAH differ from MHA in terms of individualization?
BAH takes into account the service member’s specific pay grade, family status, and the exact ZIP code of their duty station. MHA, however, uses a standardized E-5 with dependents rate as a general reference for all beneficiaries, regardless of their prior rank.
How do status changes affect BAH versus MHA?
A service member’s BAH may change if they have a Permanent Change of Station (PCS), a reduction in pay grade, or a change in family status. A veteran’s MHA primarily changes based on the number of classes they are taking, when they started using their benefits (due to legislative changes), or if they switch between in-person and online learning.
What is the purpose of the Basic Allowance for Housing (BAH)?
BAH is money given to active-duty service members in the United States who don’t live in government-provided military housing. Its main goal is to help them pay for a place to live in civilian areas.
Why was BAH created to replace the old Basic Allowance for Quarters (BAQ)?
Before 1998, the Basic Allowance for Quarters (BAQ) was a flat amount everywhere, which didn’t account for the significant differences in housing costs across the country. This often left service members paying a considerable amount out of pocket, especially in expensive locations. To fix this, Congress created BAH in 1998 to be a fairer system that considered where someone was stationed and if they had family.
How is the BAH rate determined?
The Department of Defense determines BAH rates annually by examining actual housing costs in specific areas. They consider the ZIP code of the service member’s main job location, their military rank (since higher ranks may require larger homes), and whether they have family members living with them. They also survey the cost of rental properties and basic utilities, such as electricity, heat, and water, in each area.
How often do BAH rates change, and what is Individual Rate Protection?
BAH rates are updated annually. They take effect on January 1st of the new year. This yearly update ensures the allowance keeps pace with changes in the civilian rental market.
Individual Rate Protection applies when the BAH rate for a service member’s current location goes down. In such cases the higher amount they were getting before continues to be paid, as long as they stay at the exact job location, their rank doesn’t decrease, and their family situation doesn’t change. If rates increase, the service member receives the new, higher rate.
Does BAH always cover 100% of housing costs?
No, BAH is not always designed to cover 100% of housing costs. Historically, it covered less, and currently, it generally covers about 95-97% of housing expenses, meaning service members might pay a small part out of their own pocket. This shared cost element was reintroduced in 2015 to help manage the program’s budget.
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About the author
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
