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FY 2003 Basic Allowance for Housing
Rates for Commissioned Officers with Dependents
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Below are the rates of tax-free housing allowance (Basic Allowance for Housing, or BAH) that are provided to commissioned officers (with dependents) who are authorized to reside off base at government expense.

For Fiscal Year 2003, housing rates increased by an average of 8 percent over 2002 rates. As a National Survey has shown that rental rates around military bases have risen an average of 4.2 percent during the past year, the average out-of-pocket housing expenses for military members will drop from 11.3 percent to 7.5 percent. This is part of a DOD plan to reduce average out-of-pocket expenses to zero by the year 2005. In 2000, average out-of-pocket costs were 20 percent, reduced to 15 percent with the raise for 2001, and 11.3 percent in 2002. Housing allowance rates are based upon rank, location, and whether or not a member has dependents.

The Department of Defense (DOD) employs Runzheimer International to collect the nation-wide housing cost data that they use to compute BAH. Additionally, DOD obtains current data from multiple sources, employing a "checks and balances" approach to ensure reliability and accuracy. Current residential vacancies, identified in local newspapers and real estate rental listings, are an important source of data. Vacancies are selected at random, and subjected to a screening process. Telephone interviews establish the availability and exact location of each unit sampled. DOD has designed the sample to obtain a statistical confidence level of 95% or higher. DOD also contacts apartment and real estate management companies to identify units for rental pricing. It is not uncommon for DOD to consult real estate professionals in a locality to obtain confirmation and additional sources of data. Where available, DOD contacts fort/post/base housing referral offices, to tap local military expertise and gain insights into the local concerns of military. Finally, DoD and the Services conduct on-site evaluations at various locations to confirm and ensure reliability and accuracy of the cost data.

Michigan
Location O-1E O-2E O-3E O-1 O-2 O-3 O-4 O-5 O-6 O-7
DETROIT, MI 1286 1321 1492 970 1247 1325 1697 1961 1977 2000
MARQUETTE, MI 663 751 792 534 584 761 827 871 878 946
SAULT STE MARIE, MI 862 923 980 700 805 930 1041 1118 1127 1140
TRAVERSE CITY, MI 992 1054 1117 836 934 1061 1183 1268 1278 1293
GRAND HAVEN, MI 857 929 982 739 803 937 1033 1100 1109 1122
PORT HURON, MI 806 857 908 665 759 862 963 1034 1042 1107
BATTLE CREEK/KALAMAZOO, MI 945 1025 1065 782 871 1034 1099 1143 1152 1166
LANSING, MI 1027 1083 1163 855 974 1089 1252 1366 1377 1393
GRAND RAPIDS, MI 997 1067 1142 854 958 1078 1218 1327 1338 1353
ANN ARBOR, MI 1477 1613 1703 1227 1352 1628 1790 1902 1918 1940
SAGINAW, MI 766 810 841 639 725 815 871 955 987 1007
ALPENA COUNTY, MI 663 722 761 537 608 728 799 848 855 946
JACKSON, MI 1046 1139 1201 840 961 1149 1263 1341 1352 1368
CHARLEVOIX, MI 898 978 1031 727 825 986 1084 1151 1160 1174

Data courtesy of Department of Defense
For locations not listed above, visit the DOD BAH Interactive Database

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