By: David Kucic, RA
CRS, GRI, ABR, e-PRO
First Sergeant, USA (Ret)
RE/MAX Honolulu, Oahu, Hawaii
BAH Rates or "Basic Allowance for Housing Rates" are decreasing for many ranks in 2009 on Oahu, Hawaii.
The new rate calculator can be found at Hawaii 2009 BAH Rates. The rates apply to Schofield Barracks, Wheeler Army Airfield, Pearl Harbor, Hickam AFB, Marine Corps Base Kaneohe, Camp H.M. Smith or Tripler Army Medical Center along with any other servicemembers that are stationed on Oahu but not necessarily on a base such as: Recruiters, Servicemembers Attending College in Hawaii, AC/RC, National Guard Members that are on Active Duty.
This is the second time in as many years that many of the ranks will see a decrease in their amount of allowance amount for off post housing in Hawaii which is following the real estate market in Hawaii. As home prices decrease, the rental amounts decrease which is what the Department of Defence Finance is following.
Servicemember serving on Oahu that are already receiving BAH prior to 2009 will stay at the higher rate and be "grandfathered" as long as they remain in Hawaii. Servicemembers that have been stationed in Hawaii since the time that Hawaii BAH rates were at their peak in 2006 and 2007 are receiving the most money. Many of these servicmembers purchased Hawaii real estate in 2006 and 2007 under the assumption that their BAH was a certain amount each month. The Department of Defense makes a great choice by grandfathering for these servicmembers otherwise, they may not be able to afford their mortgage payments.
As I look at these decreases in Hawaii BAH but I also look at the decrease in housing prices and the fantastic interest rates on Hawaii VA Loans, everything seems to come out pretty even at this point despite the decrease in BAH. Jay Oku, a VA approved mortgage broker on Oahu, informs me of the interest rates on a daily basis. Lately they have been hovering right around 5% for a 30 year VA Fixed Rate Loan.
My RE/MAX Honolulu in Kapolei, Hawaii has several agents that are well versed in Military Relocations to Hawaii. For more information on available real estate in Hawaii, log in to www.HawaiiPCS.com.
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