How Does BAH as Rent Work?
Using your Basic Allowance for Housing (BAH) for rent is easy. Initially, Airmen will submit an AF Form 594 to the base finance office to initiate the BAH entitlement. Next, sign a Resident Occupancy Agreement (ROA) to give permission to allot your BAH entitlements to rent. After your information is processed, your BAH will be collected by a management company on behalf of the Air Force and paid to Corvias on the first of each month. Your family's take-home pay won't change at all — you will simply see a "rent allotment" in the third column of your Leave and Earnings Statement (LES). Rent is paid in arrears, which means the allotment that is paid on the first of the month is for the previous month's rent.
Want more detail?
Before privatization, a military family essentially forfeited the Basic Allowance for Housing (BAH) in exchange for living in government quarters on base. With the start of privatized housing on September 1, all families living on base in Corvias communities will see their BAH entitlement included on their LES and a corresponding allotment for rent which is paid directly to Corvias.
Steps to Start a Rent Allotment with Your BAH
- Airmen complete AF Form 594 available through base finance office — Authorization to Start, Stop or Change BAH for Housing
- Next, airmen sign a Resident Occupancy Agreement (ROA), similar to a civilian lease.
- The AF Form 594 and the ROA give the government permission to start the rent allotment, which equals the service member's BAH entitlement for his or her rank.
- The allotment should reflect any BAH increases or decreases that occur, but airmen need to check it regularly for accuracy
What if both husband and wife are active-duty?
If a family is dual military (both spouses are on active duty), both airmen will receive the appropriate BAH. However, the rent will equal the senior grade member's BAH at the "with dependent" rate. The other service member retains their BAH.
What happens after we sign the Resident Occupancy Agreement?
- Once the AF Form 594 is completed and the ROA is signed, the airman's information is entered into a database for the third-party collecting the allotments.
- The BAH will be collected and managed by the Military Assistance Company (MAC), an allotment management contractor who works for the Air Force.
MAC has been processing military allotments since 1985 and serves military housing offices in all branches of service. The payment system is fully automated and is interfaced with the Defense Finance and Accounting Service (DFAS). This system facilitates starting, managing, tracking, updating and stopping BAH allotments.
When is my first rent payment paid through MAC?
- BAH appears on the Leave Earning Statement (LES) every two weeks (one half per pay period) and is paid in full to the Corvias on the first of the month following the month of move-in. In other words, on the first of the month, Corvias will receive your BAH allotment for your prior month of occupancy in the home. This is often referred to as "payment in arrears."
- For example, if a service member and family move into their home on March 1st, they will see the allotment for half of March's rent appear on their LES beginning March 15th. The second half of the allotment will appear on the service member's LES at the end of March. Then on April 1, Corvias will receive the full month's rent for the month of March.
Where can I verify this information on my LES?
- The BAH amount being paid will appear on the left side of the LES under "Entitlements."
- The rent allotment will appear in the third column of the LES under "Allotments" for an amount equal to the BAH.
- There will be no change in your take-home pay.
How do we stop the allotments when we prepare to move out?
- Stopping a BAH allotment upon move-out is as easy as starting it. Once Corvias has officially cleared the resident and any charges for damages beyond normal wear and tear have been paid, the allotment will be stopped.
- After move-out, any refund due will be made after the 10th of the following month. For example, if you moved out on July 15, you would receive your refund shortly after August 10. What if my BAH does not show up on my LES?
- The rent payment process is designed to be smooth and seamless. If your BAH does not appear on the LES, or if the airman receives an entitlement and it is not taken out as an allotment, they should see their community management team immediately.
- The BAH money is earmarked for rent. If the BAH money is not deducted by an allotment, the service member will be responsible for paying rent in cash until the issue is corrected.