Local Housing Allowance (2024)

FAQs

What is local housing allowance? ›

Local Housing Allowance (LHA) is the way housing benefit is calculated for people who rent from a private landlord. The figure is used to determine the maximum amount of benefit you can receive.

There are no standard amounts for housing allowance as a whole. The IRS guidelines say to use the fair market rental value of your housing and housing expenses (i.e., gas, electric, cable, etc.).

The 2024 Basic Allowance for Housing rates, as part of a robust military compensation package, continue the member cost-sharing element at five percent of the national average housing cost by pay grade. These amounts vary by grade and dependency status and range from $85 to $194 monthly for the 2024 rates.

Local Housing Allowance (LHA) is a means tested benefit paid to those who live in private rented accommodation and who are claiming housing benefit. The benefit is paid directly to the tenant's bank account or building society, and does not have to be assessed by the local rent officer.

The Local Housing Allowance itself is determined by a survey of rents within a given Broad Rent Market Area where the median, or 50th percentile, of rents is determined and it is this figure that is used to set the LHA, though since 2011 the Local Housing Allowance is based on the 30th percent of rents in an area.

Local Housing means the rent rate set annually by the Valuation Office Allowance” (or any successor body thereof) for the area within which the Affordable Rented Housing Units are located and which is used to calculate the maximum housing benefit entitlement for each tenant thereof or any scheme which supercedes it.

If your housing allowance exceeds the lesser of your reasonable compensation, the fair rental value of the home, or your actual expenses directly relating to providing the home, you must include the amount of the excess in income.

House Rent Allowance is an allowance given by an employer to an employee to cover the cost of living in rented housing. HRA is not entirely taxable, even though it is a part of your salary. A portion of HRA is excluded from taxation under Section 10 (13A) of the Income Tax Act of 1961, subject to some provisions.

The only phone you can claim for your housing allowance expense is a land-line which is hardwired into the house.

Who is eligible for BAH? A member assigned to permanent duty within the 50 United States, who is not furnished government housing, is eligible for a Basic Allowance for Housing (BAH), based on the member's rank, dependency status, and permanent duty station ZIP Code.

Can I get BAH if my spouse doesn't live with me? ›

Under most circ*mstances, you receive BAH for the location where you are assigned, not where you live. Additionally, you may be entitled to some BAH amounts if you are residing separately from your dependents.

The Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) are both nontaxable income.

It is based on how many bedrooms you can claim for under the rules. The number, age and sex of the people in your household affects your LHA rate. Most single private renters under 35 only get the shared accommodation rate of LHA - even if you do not share your home with others.

A tenant is exempt from LHA rules for the following categories: tenants of Registered Social Landlords; or. tenants of Registered Housing Associations; or. tenancies which started before 15 January 1989; or.

Maximum LHA rates payable

The maximum housing benefit that you can receive cannot be more than the rent that you pay or the LHA evaluation, whichever is the lowest. The LHA rates for the area that you live in are published on the VOA website.

Local Housing Allowance means the flat rate rental allowance providing financial assistance towards the housing costs of low income households for different rental market areas and property types set out and reviewed by the Valuation Office Agency under a framework introduced by the Department of Works and Pensions or ...

Housing allowances are often provided in situations where an employee has to live somewhere other than their usual area for work purposes, such as in a remote location or a different state or country. They can be part of an employment contract or offered as an incentive for existing employees to relocate.

There is a special type of Basic Allowance for Housing (BAH) known as BAH Transit, BAH Type II, BAH Non-Locality, or BAH Reserve, depending on what branch you are in and your status. This BAH is paid when you are in a travel status from one permanent duty station to another.

Housing allowance is taxed in full.