Best Ways to Manage Your Overseas Housing Allowance

Preparing to move to an overseas duty station with the military? Living in another country is an exciting opportunity, but it comes with some extra costs. So, the military provides extra financial help through the Overseas Housing Allowance (OHA).

Understanding your OHA is key to making the most of an overseas PCS. We’ll go over how to know what you will get before you move, how to manage the allowance while you’re living overseas, and how to get reimbursed for expenses that come up. You’ll be able to approach your PCS with ease (and our helpful PCS toolkit with even more tips and tricks).

OHA stands for Overseas Housing Allowance, and it covers housing-related expenses for overseas military assignments.

When stationed within the continental U.S., also called a CONUS duty station, you receive a Basic Allowance for Housing (BAH). When stationed overseas, OHA replaces BAH.

OHA is divided into three portions: housing, utilities, and a move-in housing allowance (MIHA). The specific amount is based on your location and the area’s average rent.

Some one-time amounts as well as recurring allowances are part of OHA.

• Rent OHA
• Utility and maintenance costs
• MIHA

The main portion of OHA is meant to cover rent expenses. You’ll need to pay the rent beforehand, then be reimbursed through OHA. OHA is paid in local currency, which is then converted and shown in U.S. dollars on the LES (Leave and Earnings Statement). Service members are responsible for currency exchange fluctuations if their rent is paid in a foreign currency. Certain lease inclusions (e.g., basic housing costs) are reimbursable under OHA if deemed necessary and customary for the area. While there is a cap, OHA will reimburse it as long as your lease agreement amount is below the cap.

The utility portion covers utility costs as well as basic home maintenance and repairs. You can use this ongoing monthly reimbursement for water, electricity, gas, and other utilities. These utilities must be paid separately from your rent and not included in your lease, however.

The MIHA allowances are one-time payments you get at the beginning of your move when you apply. Depending on where you relocate, extra expenses may come with living out in town.

Active duty military members are eligible for OHA when they PCS overseas. Even though Hawaii and Alaska are considered overseas for other benefits and allowances, they receive BAH for housing rather than OHA.

You can receive OHA with or without dependents or family members.

Like BAH, the rates for OHA depend on your location. The amount covers all housing expenses for 80% of service members, so there is a possibility that you’ll have to pay out of pocket. But you can maximize your allowance when you plan out your PCS move and housing.

There is a cap for OHA rental reimbursement based on your location and dependents. If your housing is below the cap, you won’t get to keep any extra money.

Keep records of your lease agreement, bill payments, and utilities. You’ll need them when submitting your OHA application for reimbursement.

You should also be aware of changes to OHA rates. The military asks service members to complete surveys, sharing what they pay for rent, utilities, and other expenses while living overseas. This data is used to update OHA rates, if needed.

While OHA covers many expenses that come with living overseas, including rent, utilities, and maintenance costs, some are not included, such as renters’ insurance and furniture rental, so make sure to leave room in your budget for these things.

You can check with the housing office before making any final plans or rental agreements to see what is covered. You can get tips and tricks specific to your locale, including what typically gets approved and what you might have to pay yourself.

MIHA is a one-time payment used to cover the costs of moving overseas. Before even boarding a plane, make a budget with all expenses listed.

You can use MIHA for some of the big-time moving expenses. MIHA does not reimburse refundable security deposits. It may cover non-refundable housing-related fees if authorized.

You can use MIHA to pay for utility connection fees, even upgraded equipment needed to get your new home ready to go. MIHA is for the one-time costs, rather than ongoing utility bills and maintenance. Like other reimbursements, you need to submit your receipts to get MIHA.

Once you have a signed lease agreement, submit it to the housing office along with your OHA and MIHA paperwork. Delays can mean you won’t get fully reimbursed for all your costs.

When it comes time to move out, the exact date of your lease termination and move-out date must match up. This is another reason why submitting your lease early can make things line up well when your time living overseas ends.

OHA includes utility reimbursement separate from your rent, which is received as a flat-rate allowance based on the data from the area. That’s why keeping all bills and receipts for utility payments is essential.

Like OHA rental payments, OHA utility reimbursements have a cap. If your utility bills are under the cap, you won’t be able to keep the extra. However, it’s still best to keep your utilities budget-friendly so you don’t pay out of pocket. Utility costs can vary in different countries based on their own energy systems. Find out the range of typical utility bills so you can plan ahead.

MIHA pays one-time expenses to relocate overseas, but some locations may not receive all portions. The types of things that MIHA covers depend on what is authorized at your location.

• MIHA rent
• MIHA miscellaneous
• MIHA security
• MIHA infectious disease
• MIHA safety

MIHA rent helps offset move-in costs for the home. Advance rent payments and reimbursable security deposits may not be included in MIHA, but set-up costs and application fees can be.

MIHA miscellaneous helps renters prepare their new homes. It can help pay for setting up utilities, running new wires or cables, and other similar work. It’s included in the first OHA rent payment.

MIHA security isn’t always included and is based on your location. But if your new home needs enhanced security, the MIHA security allowance reimburses those costs.

Some locations are also authorized to receive an MIHA infectious disease allowance. This reimbursement covers adding screens and other safety measures to prevent disease. These allowances are uncommon and only authorized in specific high-risk areas.

All overseas housing must meet certain safety requirements. If the home does not meet the minimum, you can apply for an MIHA safety allowance to make changes.

No, you can’t pocket any extra OHA. There is a cap based on your pay grade, location, and dependents. If your rent and utilities fall below the cap, your OHA will be lower.

It is important to keep track of your expenses before you move and once you arrive. Any amount that exceeds the OHA cap will come from your personal budget.

Before you go through any military move, knowing all of the benefits, pay, and allowances available is important. Whether it’s to help cover rent, pay for utilities, or reimburse one-time expenses, OHA is there to make your move go smoothly. Offsetting the financial burden can help turn the process into a fun adventure and let you make the most of your experience.

For more information on making a CONUS or overseas military move the best it can be, check out our PCS toolkit.