PCSing to Germany comes with a lot of paperwork — and few documents confuse incoming families more than the ones explaining how housing allowances work overseas. OHA and MIHA replace the BAH system you're used to from stateside assignments, and the differences matter. Getting this wrong can cost you real money, either by signing a lease your allowance won't cover, or by leaving money on the table you were entitled to.
This guide breaks down exactly how OHA and MIHA work, what to watch for in Germany specifically, and how to make the most of your housing benefit at your installation.
What Is OHA?
OHA (Overseas Housing Allowance) is the OCONUS equivalent of BAH. When you're stationed in Germany, your BAH stops and OHA takes over. Like BAH, it's designed to cover your housing costs — but the mechanics are meaningfully different.
OHA has two components:
1. The OHA Rate (rent portion) This is the main payment that covers your actual rent. It's set annually by the Defense Travel Management Office (DTMO) based on local rental market surveys near each installation. Your rate depends on your pay grade and whether you have dependents.
The key difference from BAH: OHA is a reimbursement system, not a flat payment. You submit your actual lease to finance, and they pay up to your OHA rate. If your rent is lower than your OHA ceiling, you receive your actual rent amount — you don't automatically get the full OHA rate just for having it. If your rent exceeds your OHA rate, you pay the difference out of your own pocket.
2. Utility Allowance (UA) On top of the rent portion, you receive a separate Utility Allowance to cover gas, electric, water, and heating costs. This is paid as a flat monthly amount regardless of your actual utility bills. In Germany, heating bills (especially oil heating in older properties) can run surprisingly high in winter — so understanding this allowance before you rent matters.
What Is MIHA?
MIHA (Move-In Housing Allowance) is a one-time payment designed to cover the upfront costs of renting off-post in Germany. German landlords typically require:
- A security deposit (Kaution) — usually 2-3 months' rent
- First month's rent upfront
- Sometimes a provision fee (Provision) paid to a rental agent
These costs can easily total €3,000–€6,000 before you've unpacked a single box. MIHA helps cover them.
MIHA is authorized when you first move into your off-post residence. You'll submit receipts (or your lease showing required deposits) to finance to receive reimbursement. Rates vary by location and pay grade.
Important: MIHA is not automatic. You have to apply for it with the correct paperwork. Missing this step — which happens more often than it should — means paying those move-in costs entirely out of pocket.
How OHA Rates Are Set in Germany
OHA rates are published annually, typically effective January 1st. They're broken down by installation and pay grade. You can find current rates at the DTMO website (dtmo.mil).
In Germany, the major installations each have their own rate schedules:
- KMC (Kaiserslautern Military Community / Ramstein) — one of the highest OHA areas in Germany due to limited housing supply and high demand
- USAG Stuttgart — competitive rates reflecting the Stuttgart metro housing market
- USAG Wiesbaden — adjusted for the Rhine-Main area rental market
- USAG Bavaria (Grafenwöhr/Vilseck) — typically lower rates reflecting the more rural market
- Spangdahlem Air Base — Eifel region rates
Rates change year to year based on what the rental market actually looks like. An E-6 with dependents at Ramstein will have a different OHA ceiling than the same rank at Grafenwöhr — sometimes by several hundred euros per month.
What This Means When You're House-Hunting
This is where families make expensive mistakes. Here's what to keep in mind:
Know your ceiling before you start looking. Your OHA rate is the maximum rent the military will cover. If a landlord quotes €1,400/month and your OHA ceiling is €1,200, you're personally responsible for the €200 gap every single month. Over a 3-year tour, that's €7,200 coming out of your own pocket. Pull your OHA rate from DTMO before you start touring properties — not after you fall in love with one.
The utility allowance is separate — budget accordingly. Your UA is meant to help with utilities, but German heating bills — especially in properties with oil heat (Ölheizung) — can significantly exceed the allowance in winter. Ask every landlord what the average heating costs were the previous year before signing. Get it in writing if possible.
German leases run long and move-out standards are strict. German rental law (and most leases) require tenants to leave properties in specific condition — often including repainting, deep cleaning, and sometimes minor repairs. Budget for this from day one, and photograph everything when you move in.
Check whether your lease qualifies for OHA. Finance will review your lease before authorizing OHA payments. Leases need to meet certain standards — furnished vs. unfurnished affects your rate, and leases below a certain duration may not qualify. Work with your Housing Office before signing anything you're unsure about.
The OHA Submission Process
- Find housing that fits within your OHA ceiling (or be prepared to cover any gap)
- Contact your installation Housing Office before signing — they can confirm your rate and flag any issues with the lease
- Sign the lease and bring a copy to finance along with your OHA request paperwork
- Submit your MIHA paperwork with receipts for your security deposit and move-in costs
- Set up direct deposit — OHA is paid into your account separately from your regular pay
- Report changes — if you move, your lease amount changes, or your dependency status changes, you're required to update finance immediately
Common OHA Mistakes in Germany
Signing a lease before checking your OHA rate. Always verify your ceiling first.
Not applying for MIHA. It's not automatic — you have to ask for it.
Forgetting that OHA is taxable income in some situations. Consult a tax advisor familiar with military pay if you have questions about your specific situation.
Not reporting when your lease amount changes. If your landlord raises the rent and it now exceeds your OHA ceiling, finance still only pays up to the ceiling — but you're also obligated to report the change.
Renting furnished when you have household goods coming. A furnished apartment qualifies for a different (typically lower) OHA rate than an unfurnished one. If you're shipping household goods, make sure the lease reflects an unfurnished rental.
Where to Go for Help
- Your installation Housing Office — first stop for any OHA/MIHA question. They deal with this every day.
- DTMO (dtmo.mil) — official OHA rate tables, updated annually
- JAG (Legal Assistance Office) — if a landlord dispute or lease question has legal dimensions
- Finance/Disbursing Office — for submitting paperwork and resolving payment issues
- Your sponsor or unit's outgoing families — people who just lived through this at your gaining installation are one of the best resources you have
Frequently Asked Questions
What's the difference between OHA and BAH? BAH is paid stateside regardless of your actual rent — you receive the full rate whether your rent is lower or higher. OHA reimburses your actual rent up to your rate ceiling. Stateside you can pocket the difference; overseas the system is designed to cover actual costs.
Does OHA cover my entire rent if I go over the ceiling? No. OHA pays up to your rate ceiling. You pay any amount above that ceiling out of your own pocket, every month, for the duration of your lease.
Can I live on-post and still receive OHA? No. If you live in government quarters (on-post housing), your OHA is forfeited — the government provides your housing directly. OHA is only for off-post rentals.
How long does it take to start receiving OHA? After submitting your lease and paperwork to finance, payments typically begin within 1-2 pay cycles. MIHA reimbursement can take a bit longer depending on your installation's processing times.
What if my landlord raises the rent mid-tour? You must report the change to finance immediately. OHA will be adjusted to reflect your new rent, up to your ceiling. If the new rent exceeds your ceiling, you cover the gap.
Is MIHA enough to cover a German security deposit? MIHA rates vary by installation and pay grade, and German security deposits (Kaution) of 2-3 months' rent can be substantial. In many cases MIHA covers a significant portion but not all of your move-in costs — especially in high-rent areas like KMC or Stuttgart. Plan to have some personal funds available.
Do I get OHA during temporary lodging while I'm looking for housing? No — during your initial TLA (Temporary Lodging Allowance) period, you receive TLA instead of OHA. TLA transitions to OHA once you sign a lease and move into your permanent off-post residence.
What happens to my OHA when I PCS out? OHA stops on your departure date from the installation. Coordinate with finance well in advance of your PCS orders — there are specific procedures for closing out your OHA when you leave Germany.
Rates and policies are updated annually. Always verify current OHA rates at dtmo.mil and confirm your specific situation with your installation's Housing Office before signing a lease.