2012 Military Housing Allowance (BAH) Rates in Hawaii

Military Housing Allowance (BAH) for Hawaii

** 2012 Military Basic Housing Allowance (BAH) for Hawaii (NOW Available) ** UPDATE 12/15/2011 (Click Here for pdf version of 2012 BAH Component Breakdown for All Locations, click on pdc-archive then pdf) or below for calculators.

If you’re thinking of buying OR selling a home anywhere in Hawaii (or the US), send me an email by clicking here frank@hawaiihome.biz. I can find you a trustworthy and reliable agent. I have screened agents for many of my clients, moving to or from Hawaii. I moved 18 times while on active duty, so I know what a PCS move is!

Below are the rates of tax-free housing allowance (Basic Allowance for Housing, or BAH) that are provided to enlisted, warrant officer and officer military personnel (with dependents) who are authorized to reside off base at government expense in the state of HAWAII , for calendar year 2011 or 2012.

BAH Calculator – Updated 12/15/11

Many military members have the choice to live on-base or off-base. So, which is better? There is no clear answer. It depends on many factors. Here is a link to the BAH DOD Housing Allowance Calculator for Hawaii

http://www.defensetravel.dod.mil/perdiem/bah.html

(click on BAH Calculator)

As an example:
MONTHLY ALLOWANCE:
E-7 with DEPENDENTS: $2580.00
E-7 without DEPENDENTS: $2016.00

Try this calculator and see for yourself if buying makes sense (use an appreciation rate of 6%, which means the price doubles every 12 years):
http://realestate.yahoo.com/calculators/rent_vs_own.html
For property taxes, it will be $850 for a $250,000 home. I would use $5000 per year for maintenance costs, 2% for savings and 3% for inflation.
“You would save approximately $904,337 (in today’s dollars) by buying a home, rather than renting, over the 30 year time frame you have entered.” Even when I raise the annual maintenance costs to $6000, or $7000, it still comes out higher.

If you want to live close to Tripler, choose Aiea, Salt Lake, Moanalua, Pearl City, Kalihi, Pali, Kakaako, Pauoa Valley, or Punchbowl, those are all within 5 miles.

The years that you live in a home give you the biggest tax advantage. Also, if you live in it for 2 out of the previous 5 years, ALL of the gain is tax free. You may be eligible for additional state or federal tax credits as well.

Aloha,
Frank Diaz, MBA (RA) e-PRO
Senior Chief, US Navy, Retired
East Oahu Realty
808 723 0900
Email: Frank /@/ Hawaiihome.biz