OHA vs BAH: How Overseas Housing Allowance Really Works
OCONUS uses OHA, not BAH — a reimbursement model with utility and move-in allowances. How it works and why you won't pocket the difference.
When you receive orders to an OCONUS (outside the continental United States) assignment — Germany, Japan, South Korea, Italy, Guam, or any other overseas location — your housing allowance changes fundamentally. Instead of BAH, you receive Overseas Housing Allowance (OHA).
OHA is a reimbursement system, not a flat payment. That's the core difference.
BAH vs. OHA: The Fundamental Difference
BAH — A flat monthly allowance based on your pay grade and duty location. You receive a specific dollar amount, spend what you spend on housing, and keep the difference if you spend less.
OHA — A reimbursement-based system. You find housing, sign a lease, and OHA pays your actual rent up to a cap. If your rent equals or is below the cap: OHA covers it. If your rent exceeds the cap: you pay the difference out of pocket.
This distinction matters significantly. With BAH, a frugal housing choice produces savings. With OHA, you receive your actual housing cost (up to the cap), and there's nothing to "pocket" from finding cheaper housing — though you may have flexibility in what kind of housing you choose.
How OHA Rates Are Set
The Defense Travel Management Office (DTMO) surveys housing markets at OCONUS locations annually. OHA caps are set at amounts intended to cover median-to-above-median rental prices in the local market for your pay grade.
OHA rates are published at militarybenefits.defense.gov/housing/oha and are location-specific. A service member in Stuttgart, Germany receives a different OHA cap than one in Yokosuka, Japan. Rates are denominated in local currency equivalents but paid in USD, with currency fluctuations accounted for through periodic adjustments.
The Utility/Recurring Maintenance Allowance (URMA)
In addition to the rent portion of OHA, you receive a Utility/Recurring Maintenance Allowance (URMA) — a fixed monthly payment to cover utilities (electricity, gas, water) and routine maintenance costs. URMA rates are also location-specific and published by DTMO.
URMA is paid in addition to the rent portion — it's not deducted from your OHA cap. This is the OCONUS equivalent of the utility costs that BAH is also designed to cover.
Move-In Housing Allowance (MIHA)
When you arrive at an OCONUS location and move into civilian housing, you may receive a Move-In Housing Allowance (MIHA) — a one-time payment to cover furnishing and initial setup costs that many overseas rentals don't include (appliances, furniture, etc.).
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MIHA is paid only once per assignment and comes in two components:
- MIHA/Rent: Covers security deposits, lease initiation fees, and similar one-time rental costs
- MIHA/Miscellaneous: Covers furnishing, adapters, and setup costs
MIHA rates vary significantly by location. In Japan and South Korea, where unfurnished housing is common and import costs for household goods are high, MIHA can be substantial.
Government Housing vs. OHA
If government quarters (on-post or base housing) are available, you may be required to live there depending on your assignment and family situation. When in government quarters:
- OHA is paid to the housing office (like BAH in on-post CONUS housing)
- URMA is reduced or eliminated
- MIHA is not paid
Check the housing situation at your specific OCONUS installation through your gaining unit — government housing availability varies dramatically by location.
The Currency Question
OHA rates account for local currency exchange rates, but the rates are updated on a schedule rather than daily. When the dollar weakens significantly against local currency (e.g., the euro or Japanese yen), your OHA in dollar terms may not fully cover your rent, which is priced in local currency.
DTMO makes out-of-cycle adjustments for significant currency swings, but there can be periods of exposure. Maintaining a financial buffer equivalent to one to two months of rent difference is prudent at OCONUS locations with volatile currency relationships.
Planning Your OCONUS Move
The key numbers to determine before accepting or planning around OCONUS orders:
- OHA rent cap for your grade and location
- URMA rate
- MIHA amounts
- Government housing availability and wait times
DTMO publishes all of these at militarybenefits.defense.gov. Talking to the finance office at your gaining installation before you arrive is also useful — they see the actual costs people pay.
MTT's Budget Planner supports OCONUS budgeting scenarios.
Sources: Defense Travel Management Office (militarybenefits.defense.gov/housing/oha), DoDI 1340.24, Joint Travel Regulations Chapter 10
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