Limited, variable military housing allowance

About two-thirds of military service members receive a BAH from the Department of Defense. The BAH is designed to cover 95% of housing expenses and can be used to rent or purchase homes in the local community or rent privately managed housing on military bases. The amount of the BAH depends on location, pay grade and dependency status. While military officers typically make at least 80% of the area median income (AMI), many enlisted military members do not. For the first years of service, for example, many enlisted service members may earn 50% of the AMI or less.

“A lot of times, military members will ‘stack up,’” Fenton said. “I had roommates for most of my four-year active-duty career.”

While having roommates isn’t necessary for all members of the military to afford housing, relying solely on the allowance to pay for housing is difficult for many service members. The 2023 Military Family Lifestyle Survey found that the majority of active-duty family respondents who live in civilian housing (73%)—regardless of whether they rent or own—pay more than $200 per month in housing costs out of pocket.

Almost 80% of respondents to the 2023 Military Family Support Programming Survey Report were paying more than they can comfortably afford to cover housing, rent or utility payments, including allowances for those who receive them.

How multifamily owners and operators can help

While multifamily owners and operators can’t change the BAH, there are several ways they can help members of the military who are renting apartments.

• Military discounts and offers: Ongoing discounts, waived fees and other concessions can go a long way in making apartments more affordable for service members and their families.
• Rental Partnership Program (RPP): Offered through each branch of the military and individual bases, the program provides service members and their families with appropriate housing at reduced rates. RPP is a mutually beneficial arrangement for military renters and multifamily property owners, providing expanded marketing and other benefits to the latter.

Frequent relocations

Members of the military move frequently. Each year, more than 400,000 service members make a permanent change of station, staying in a new locale for two to four years. And those on active duty can expect to deploy often. It’s not uncommon for deployments and permanent changes of station to happen in the middle of a lease term and with little notice.

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides various legal and financial protections to military personnel. The SCRA provides added protections for service members that need to break residential leases. Multifamily property owners must adjust lease terms and allow for early termination without penalty if their renter provides proper notice and documentation of military orders.

How multifamily owners and operators can help

Multifamily owners and operators are required to abide by the SCRA, but they can also be proactive about serving a population that frequently relocates by offering shorter, more flexible lease terms and including lease termination clauses for deployment. Further, owners and operators can help military members and provide amenities tailored to their needs, such as:

• Furnished apartments: Because they move so often, military renters may not have a lot of furniture of their own. Some military personnel may rent furniture—often at high interest rates. Apartments that are at least partially furnished can help residents not only save money, but also feel more at home.
• Information on the larger community: Multifamily owners and operators can introduce new military renters to the broader community with onsite job fairs, especially for non-military spouses. Apartments can also offer coupons to local stores and restaurants and info on nearby amenities.