One of the most challenging things for military families can be the frequent moves. But members of the military can also receive special housing benefits, including tax breaks, low-interest loans, and no down payment mortgages. Here’s how to make the most of these benefits in your housing decisions.

Tax-Free Housing Allowance

Service members and their families may be able to live in military housing, or they can receive a tax-free housing allowance with the monthly amount based on their rank, number of dependents and the cost of living in their area. They can use this housing allowance, called the Basic Allowance for Housing (BAH), either for rent or for mortgage payments. You can look up the BAH amounts based on zip code and rank with the Department of Defense’s BAH calculator. For example, a Second Lieutenant in Fayetteville, North Carolina, could receive a monthly housing allowance of $1,149 without dependents, or $1,359 with dependents in 2021.

If you’re thinking about buying a house, keep the size of your housing allowance in mind as you calculate how much you can afford in monthly payments. Also keep this number in mind if you end up moving and renting out the house – you may have more prospective renters if the monthly rent you charge is within the BAH amount for many service members in the area. Continuer la lecture de Housing Breaks That Are Available to Military Members and Their Families →