U.S. military personnel currently function under the traditional Overseas Housing Allowance (OHA) policy while stationed abroad. This policy is a “Use-or-Lose” policy which does not incentivize those who do not refrain from spending their OHA entitlements to the maximum allotted level. This provides a diminishing “Return On Investment” (ROI) but is the only option to OCONUS personnel. This, in turn, causes unnecessary fiscal strain to the U.S. Government. By implementing a policy similar to the Basic Housing Allowance (BAH) policy and enabling OCONUS personnel to retain a percentage of the savings the overall housing costs to the U.S. Government can be reduced.
Preliminary projections based on gathered statistical data estimate a potential savings between $300M- $436M per year given a policy modification.
A research paper has been written but could not be attached. The paper can be received upon request.