Our situation is similar to NorthernMom61, in that the housing is paid directly by the USG and not reported on a W2. The cost is inflated for our location and far above what we would be paying at home in the USA. On the other hand our agency doesn’t pay locality or hardship or hazard pay so it isn’t as if we are otherwise compensated on the other hand.
NoCook, the pretax accounts cut your tax bill, but they show the college that you have the ability to pay since you’re able to save all that money.
It may be worth approaching the school about counting retirement contributions above the match, as mentioned by 3Puppies.