The Secretary of Defense announced a major FY2001 Budget initiative
to eliminate out-of-pocket costs for off-base housing in the United
States. This action reduced service members' out-of-pocket costs for
housing from an average of 18.8 percent of monthly housing costs in 2000
to 15 percent in 2001, with continued reductions each year thereafter.
Average out-of-pocket costs were entirely eliminated in 2005.
Average rental costs in particular locations fluctuate, both up and
down. BAH rates for an area may follow both the increases and decreases
of average rental costs, but no individual's rate will decrease, so long
as the member retains uninterrupted eligibility for BAH at the same