When troops are serving our country and need housing, there are allowances afforded to them to help offset these costs. Known as Basic Allowance for Housing (BAH), these benefits are provided to those who aren’t living in housing provided by the government. This is a great way to say thanks and help out our nation’s heroes; however, it’s also a clear opportunity for business owners.
The military community is one that commands more than $1 trillion in buying power. This means they are a viable target market for many goods and services. An increase in BAH is coming for 2023. Let’s explore what that can mean for your local business.
What Is BAH?
Simply put, BAH helps troops pay for housing expenses when they live off base. But the ramifications of such benefits can be long-lasting and widespread. This is because using less combat pay on housing means more disposable income for troops and their families.
This could lead to increased demand for products and services offered by local businesses, potentially resulting in increased sales and revenue. While the impact of an increase in BAH on local businesses will depend on a variety of factors, this is still an exciting opportunity for companies looking to expand their customer base.
One of the key factors in the potential for business expansion involves your local housing market. The higher the cost of housing is in your area, the higher the amount of BAH troops in your area will receive. Other factors that affect the amount of payment troops receive include their rank and number of dependents.
How Can It Help Local Businesses?
The opportunity is there for local businesses and entrepreneurs. Whether it’s moving away or moving in, the military families undergoing this change are going to need services to make the move happen. Furthermore, they will need goods and services once they are settled.
BAH rates for 2023 are going to help many families overcome nasty inflation rates that continue to plague Americans. Considering military families move every two to four years, it’s clear to see that these circumstances aren’t only a one-time occurrence.
Setting up your company to be in front of this target market is a great way to find new business and establish a reputation within the military community.
Which Industries Can Benefit?
Let’s break down some of the top industries benefiting from this increase.
Service members and their families who receive an increase in BAH stimulate the economy through real estate. This is a great opportunity for realtors, lenders, home builders, loan officers, and others involved with the rental or purchasing of property.
In the same way that troops are in need of housing, they are also in need of home services. This means inspections, renovations, contractors, cleaning services, HVAC repair, plumbing services, landscaping, and more.
A common occurrence for military families moving is not only finding a new place to live but also finding a new mode of transportation. Most vehicle transactions, both old and new, are done through car dealerships, making this a prime opportunity for auto dealers.
Hospitality and Retail
When troops move, they’re inevitably going to need to find a new favorite restaurant to bring their families to, a bar to relax at, a nail shop, a grocery store, etc. Even with such services provided on the base, finding local spots is a convenient way to get the essentials they need near home. Businesses that take advantage unlock a loyal customer base.
Again, this is just a snapshot of the industries that can be affected by troops moving and the increase of BAH they are now receiving. The military community is a diverse group that makes great repeat customers who are loyal to those who fulfill their needs.
How To Take Advantage of the 2023 BAH Rates
The increase in benefits from BAH in 2023 means more money in local economies from families searching for new places to shop, services to use, and goods to purchase. Taking the time to find this audience can be time-consuming, but we can help.
Here at MilitaryAdvertising.com, we work hard to hone content that the military community is passionate about. In doing so, we are able to capture this target market and use our platform to advertise relevant goods and services online.
This can mean using ads to provide a digital billboard for your business, the chance to shop virtually, collaborative content pieces to drive traffic/leads, and much more.
With high-performing websites directed at both active-duty military members and the Veteran community, we continue to provide quality content and effectively drive traffic as a result.
Spend less time searching for your audience and more time reaching it. BAH rates are increasing. Be sure that your brand is seen. Contact us here at MilitaryAdvertising.com to see how we can help you find the right customer at the right time today!