Overseas Housing Allowance (OHA) Explained
If you receive orders for an OCONUS (Outside Continental United States) duty station, say goodbye to BAH and hello to **OHA (Overseas Housing Allowance)**. While they serve the same purpose, the rules for OHA are fundamentally different.
Three Components of OHA
Unlike BAH, which is a single lump sum, OHA is a reimbursement system comprised of three parts:
- Rental Allowance: Covers your monthly rent up to a cap.
- Utility/Recurring Maintenance Allowance: A flat rate for utilities (added to your check).
- Move-In Housing Allowance (MIHA): A one-time payment to help with move-in costs (transformers, security upgrades, etc.).
The "Use It or Lose It" Rule
This is the most shocking difference for new expats. With BAH, if your rent is lower than your allowance, you keep the profit. **With OHA, you do not keep the difference.**
Example:
- Your OHA Rental Cap: €2,000
- Your Actual Rent: €1,500
- You Receive: €1,500 (plus utility allowance).
- Pentagon Keeps: €500.
However, if your rent is €2,200, you pay the extra €200 out of pocket. Therefore, the strategy is to find housing that is as close to your cap as possible without going over.
Currency Fluctuations
OHA rates are reviewed frequently (often monthly) to account for currency exchange rates (COLA). This protects you. If the Dollar weakens against the Euro or Yen, your allowance adjusts so you can still pay your rent.
Tips for OHA Success
- Never sign a lease without the Housing Office's approval.
- Ask previous tenants about actual utility costs (the allowance is fixed, so you CAN profit or lose money on utilities).
- Check if "Sharer" rates apply if you plan to have roommates since OHA rules differ for shared housing.