Overseas Housing Allowance (OHA): How It Works

• OHA replaces BAH overseas, covering rent, utilities, and a one-time Move-In Allowance (MIHA).
• Reimbursements for rent and utilities are capped
• Servicemembers should keep every receipt.
• Timely paperwork submission is essential to getting fully reimbursed.

Preparing to move to an overseas duty station with the military? Living in another country is an exciting opportunity, but it also comes with additional 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.

In this article, 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 and recurring allowances are part of OHA:

• Rent
• Utility and Recurring Maintenance
• Move-In Housing Allowance (MIHA)

Here’s a closer look at each one of them.

The OHA Rent benefit reimburses your actual monthly rent up to a location-specific ceiling set by pay grade and dependency status. You pay up front, and then submit your lease agreement and payment receipt for reimbursement.

OHA rent payments are on a reimbursement basis only and paid to you in U.S. dollars. The OHA Rent benefit will pay only what you pay out, up to a ceiling. Rent above the ceiling comes out of your pocket.

Certain lease inclusions (e.g., basic housing costs) are reimbursable under OHA if deemed necessary and customary for the area. While a cap exists, OHA will reimburse it as long as your lease agreement amount is below the cap.

The Defense Travel Management Office (DTMO) adjusts OHA twice per pay period using a Currency Adjustment Model that compares the pay system exchange rate against the actual market rate.

The program is administered under DoD Financial Management Regulation Vol. 7A, Ch. 26.

The utility portion covers utility costs and basic home maintenance and repairs.

You can use this ongoing monthly reimbursement for water, electricity, gas, and other utilities. It’s a flat monthly payment based on the 80th percentile of reported local utility costs, according to the annual OHA Utility Expenses Survey. You can keep any overages.

If utilities are bundled in your lease, the utility allowance is added to the rental allowance instead. Members without dependents who pay their own utilities receive 75% of the with-dependents rate.

The Move-In Housing Allowance (MIHA) is a one-time payment to reimburse you for your moving expenses.

MIHA pays one-time relocation expenses, but some locations may not receive all of them. The expenses 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. MIHA may not include advance rent payments and reimbursable security deposits, 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 a MIHA infectious disease allowance. This reimbursement covers the cost of adding screens and other safety measures to prevent disease. These allowances are rare and only authorized in specific high-risk areas.

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

MIHA/Safety “covers reasonable safety-related expenses for a Service member assigned to an area where upgrades to the physical dwelling are required to comply with safety requirements in 15 Foreign Affairs Manual 971.1.”

It applies only at designated MIHA/Safety locations identified in the DoD MIHA Process Guide.

Note: MIHA does not cover refundable security deposits.

Active duty military members are eligible for OHA when they PCS to an OCONUS/Overseas duty station.

The two exceptions are Alaska and Hawaii, which are considered OCONUS for the purposes of PCS. They qualify for temporary lodging allowance (TLA), COLA, and household goods benefits. However, service members stationed in Alaska or Hawaii receive BAH, not OHA.

You can receive OHA with or without dependents or family members. Members without dependents qualify at 90% of the with-dependents rent ceiling and 75% of the utility allowance.

OHA (Overseas Housing Allowance) and BAH (Basic Allowance for Housing) are both U.S. military housing benefits, but they operate quite differently based on where a service member is stationed.

BAH is used within the United States and provides a fixed monthly allowance based on rank, location, and dependency status, regardless of actual housing costs. This means service members can keep any leftover funds if they spend less than their allowance.

In contrast, OHA is designed for those stationed overseas and is reimbursement-based, covering actual rent up to a capped amount, utilities, and move-in expenses, but does not allow members to pocket unused funds.

While BAH offers more flexibility and potential savings, OHA aims to more precisely match the often variable and country-specific housing markets abroad, ensuring service members are adequately supported without overcompensation.

The following items are not reimbursed or covered by OHA:

• Renter’s insurance
• Furniture rental
• Refundable security deposits
• Utility costs above the flat allowance
• Cleaning and damage charges at lease termination

A short list of OHA Unique Expenses exists for specific locations. For example, in France, OHA reimburses the mandatory Habitation Tax (excluding late fees), and in Denmark, OHA reimburses mandatory refurbishment at lease end.

Service members with dependents on an unaccompanied overseas tour can receive both allowances at once.

Your BAH with dependents rate is based on your family’s zip code in the U.S. If you don’t receive government housing overseas, you will be eligible for OHA, paid separately at the lower unaccompanied rate.

Apply for OHA through your finance office, not the housing office.

Submit the following two forms:

• DD Form 2367 (Individual Overseas Housing Allowance Report) initiates OHA. Submit with a copy of your signed lease.
• DD Form 2556 (MIHA Claim Form) is required for MIHA Rent, Security, Infectious Disease, or Safety. Receipts will be required.

Don’t wait. File early. Late paperwork is not always reimbursed retroactively. Check current rates for your location using the DTMO OHA Rate Calculator before signing a lease.

Like BAH, OHA rates depend on your location. OHA rental allowances are set so that 80% of members with dependents have rent fully reimbursed, though some members may still pay out of pocket, especially in high-cost areas like Stuttgart, Tokyo, and central London.

Keep all your receipts and copies of every lease or rental agreement. Your finance office will require them before processing any reimbursements.

Billing cycles vary. Germany and Italy often bill annually or semiannually. Japan separates electric, gas, and water. Park the allowance in a separate account and draw from it as bills arrive rather than treating it as monthly income.

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 must match the move-out date. This is another reason why submitting your lease early can make things line up well when your time living overseas ends.

Before you go through any military move, it’s important to know all the benefits, pay, and allowances available. 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 as smooth as possible, check out our PCS toolkit.