Overseas Housing Allowance (OHA)


Paid to approximately 44,000 uniformed members at 430 locations overseas. Current annual expenditure $519 million. Average annual payment to typical member $11,800. Impacted by currency fluctuations.

OHA compensates members for the majority of housing expenses. Comprised of three components: rental ceiling, utility/recurring maintenance allowance, and move-in housing allowance (MIHA).

Rental ceilings computed using actual rents as reported through finance centers. Rental ceiling set such that 80 percentile of members with dependents have rents fully reimbursed. Unaccompanied members or members without dependents entitled to 90% of with dependent rate. 80% of total OHA payments.

Utility/recurring maintenance allowance paid monthly to defray expenses paid directly to utility companies. Payments fully cover the reported utility expenses for 80 percent of the members, based on expenses reported to PDTATAC by members receiving the allowance. 18% of total OHA payments.

Move-in housing allowance comprised of three components: MIHA/Miscellaneous, MIHA/Rent, and MIHA/Security. MIHA/Miscellaneous--a fixed-rate, lump-sum payment that reflects average expenditures to make dwellings habitable (e.g., supplemental heating equipment, wardrobes). 2% of total OHA payments. MIHA/Rent--an actual dollar-for- dollar payment made in the field for customary or legally required rent-related expenses, such as rental agents' fees. Fixed, one-time non-refundable charges. MIHA/Security--an actual expense component paid for security-related enhancements to physical dwelling when quarters must be modified to minimize exposure to terrorist or criminal threat.

Allowances periodically updated based on new cost data and review of currency fluctuations.

Updates based on new cost data:

Rental ceilings: actual rents provided through local finance offices; consolidated data provided by duty station from Defense Manpower Data Center West. Rental ceilings normally reviewed and adjusted every six months. Can review and adjust as frequently as every three months.

Utility/recurring maintenance allowance: updated annually through survey provided to individual members that receive the allowance.

MIHA/Miscellaneous: updated once every three years through survey provided to individual members overseas that receive OHA.

MIHA/Rent & MIHA/Security: actual, dollar-for-dollar payments made in the field.


Updates based on currency fluctuations:

Allowances paid in U.S. dollars but rent, utilities, and move-in items typically paid in local currency. Goal to maintain purchasing power in local currency over time.

Collect exchange rates daily and compare allowance exchange rate to actual trading rate available to members. Accumulate differences until 5% threshold reached.

Reset allowance rate of exchange such that under/over payment is zeroed out over 8 week period. GAO validated; equitable to member and government

 

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