Join the Navy, Own a Home!

Moving all around the world definitely has it's perks; living in an exotic locations like Hawaii or sunny southern California. Civilians see this as a feat that they would never be able to afford and get the chance to do- which is why many sailors join the navy in the first place.

What's that motto? Join the Navy, SEE THE WORLD!

Well, those civilians would be correct: they probably can't afford to live in some of these locations and a military family's ability to do so may seem... frivolous as the Navy PAYS you to live there. Many understand it as we receive FREE housing. Hmmmm. Free rent? This MUST be a perk, right? Military families don't have to pay rent out of pocket? Wellllllllll, not so fast there, Kemo Sabe. There's a reason the government pays this and many of us don't take the time to understand exactly WHY.

Well, lets break it down, shall we?

PART 1: THE COST OF LIVING

Houses cost more in areas like Hawaii verses Oklahoma, right? Yes, MUCH more. So if "free" housing wasn't available to the military, how could they afford to live in homes in that exotic Hawaii location that cost in excess of $1 Million Dollars (for a two bedroom, non A/C, carport home) when they only make, say, $40,000 a year?

Short answer: They would be living in a tent.

What's that brah'? Need another tarp? Mahalo!

That "free" housing is just a housing development that is adequate enough to provide suitable living arrangements and a safe living environment so no one is living in a tent or in a shady neighborhood where their family would be in danger.

The housing development takes all of a members Basic Allowance for Housing (BAH) as listed in item "B" below. So, in essence, we are paying for housing.

PART 2: UNDERSTANDING THE PAY

A- Service Member gets paid a base pay rate that is determined by his number of years and his rank (advancement, like moving up in the corporate world).

B- Service Member gets paid a housing allowance that is determined by his rank (that advancement thing again), whether or not he/she has dependents (scoff! I LOATHE this word!) also known as a spouse and/or children AND by the location where the service member is living. Yes, this rate changes depending on where the military member is living as it's based off the economy of that area.

 A+B= C (final amount of paycheck)

Let's take a sailor who has been in the Navy for 10 years, at the position of an E-6 and lives in Hawaii.

A (base pay)= $3,331 a month (annual salary $39,972 before taxes)  pay chart found here
B (housing allowance)= $2,952 a month (annual allowance $35,424)  Allowance chart found here
C (total amount)= $75,396 annual salary or a family of 4 to live in Hawaii (before taxes).

Yes, $75,396 annually to live like kings in Hawaii. This includes housing, utilities, food... the works!

The only crown I could afford in Hawaii

Wait, you can't live like kings on that amount? WHAT THE EFF?
Oh, you mean I should live in the "free" housing that the military provides so I can afford to eat and not live in a tent? That means you receive your "free" house but now your paycheck is once again down to...

$39,972 annually (before taxes)

You just paid $35,424 to live in base housing.

BUT you have adequate housing that is safe and in some cases, very nice. I currently reside in one of those nice areas and am soooo happy! In other cases, your washer/dryer hookups are outside in a carport, you don't have A/C and the lead paint is chipping of the wall (but don't worry, just don't let your toddler crawl on the floor then put their hands in their mouth....TRUE STORY!)

Part 3: THE NUMBERS

Let's throw a few scenarios out there to explain why this housing is available and why military often cannot afford to own a home where they are residing:

Housing allowance numbers are based on the Base Pay Annual Salary (A) of:
E-3 payrate (working in the military for 3 years): $2,034.90 = $24,418.80 annually before taxes

E-7 payrate (working in the miliary for 18 years): $4,323.90 = $51,886.80 annually before taxes

Mortgage calculator can be found here

VENTURA COUNTY, CALIFORNIA

Median Home value: $477,400

Mortgage calculator says monthly payment would be: $3,060.08

NAVY ALLOWANCE:

E-3  with a spouse/child receives $1,800  (single/no kids $1,350) 

E-7 with a spouse/child receives $2,388  (single/no kids $1,809)

VERDICT: CANNOT AFFORD TO OWN A HOME

So that means...

 The E-3 with family makes a total of $46,018 a year total in California. CALIFORNIA! If they decide to live in base housing, their annual pay goes back down to $24,418.80 and they paid $21,600 for their "free" housing.

The E-7 with a family makes $80,542.80 annually in California. If they live in "free housing" then they pay $28,656 and their annual pay is now back down to $57,886.80. 

OAHU, HAWAII

Median home value: $700,633  (home prices Kailua, Kaneohe and Honolulu averaged)

Mortgage calculator says monthly payment would be: $4,490.98

NAVY PAYS:

E-3 with a spouse/child receives $2,607  (single/no kids $1,956)

E-7 with a spouse/child receives $3,189  (single/no kids $2,613)

VERDICT: CANNOT AFFORD TO OWN A HOME

So that means: 
The  E-3 with 3 years in and has a family makes a total of $55,702.80 a year total in Hawaii. HAWAII! If they decide to live in base housing, their annual pay goes back down to $24,418.80 and they paid $31,284 for their "free" housing.

The E-7 with 18 years in and has a family makes $96,154.8 annually. If they live in "free housing" then they pay $38,268 and their annual pay is now back down to $57,886.80. 

NORFOLK, VIRGINIA

Median home value: $250,229

Mortgage calculator says monthly payment would be: $1,603.94

NAVY PAYS:

E-3 with a spouse/child receives $1,380  (single/no kids $1,077)

E-7 with a spouse/child receives $1,815  (single/no kids $1,389)

VERDICT: CAN AFFORD TO OWN A HOME *IF* OF A CERTAIN RANK

So that means: 
The  E-3 with 3 years in and has a family makes a total of $40,978.80 a year total in Virginia. If they decide to live in base housing, their annual pay goes back down to $24,418.80 and they paid $16,560 for their "free" housing.

The E-7 with 18 years in and has a family makes $79,666.80 annually in Virginia. If they live in "free housing" then they pay $21,780 and their annual pay is now back down to $57,886.80. 

THE END RESULT: 

Bam! What? Wasn't what you were expecting? How's that "free" housing that you pay for treating you now? And do NOT get me started on how much it costs for utilities/food/gas in that area!!!

I wonder if civilians truly realize how much military members make? I know some who think that we have a sweet deal (in other ways we do!) and believe we make fist fulls of money, to which they have said and I quote: "WHY DO YOU NEED A MILITARY DISCOUNT TO THE THEME PARK AND I HAVE TO PAY FULL PRICE? YOU GET FREE HOUSING!" (again, true story!)

Which prompted me to do my research.

Sound off and let me know your own experiences! Mahalo!