There is a COLA, $3500 per month is the Min housing allowance per month, it adjusts upward quarterly when the Dept of state foreign Max Per diem Rate (MPDR) goes up 10% (resets to the new MPDR). You did read the LOA right?

It just cracks me up that people think it isn't doable when an FO in the EMEA will be making more than 95% of the population there, and paying less tax's to boot.