About Basic Allowance for Housing (BAH)
Understanding military housing allowances and how they work
Basic Allowance for Housing (BAH) is a United States military allowance prescribed by geographic duty location, pay grade, and dependency status. It provides uniformed service members equitable housing compensation based on housing costs in local civilian housing markets when government quarters are not provided.
BAH is designed to help service members cover the cost of housing in the civilian community when on-base housing is not available or not desired. The allowance is intended to cover rent, utilities, renter's insurance, and other housing-related expenses.
BAH rates are calculated using several key factors:
Geographic Location
BAH rates vary significantly by location based on local housing costs. The Department of Defense conducts annual surveys of rental properties in each Military Housing Area (MHA) to determine average housing costs.
Pay Grade
Higher-ranking service members receive higher BAH rates, reflecting the expectation that they may require larger or higher-quality housing appropriate to their rank and responsibilities.
Dependency Status
Service members with dependents (spouse and/or children) receive a higher BAH rate than those without dependents, recognizing the need for additional space and family housing.
Annual Updates
BAH rates are updated annually based on current market surveys and reflect changes in local housing costs. The 2025 rates include adjustments for inflation and regional housing market changes.
BAH replaced the previous Basic Allowance for Quarters (BAQ) and Variable Housing Allowance (VHA) systems in 1998. The current BAH system provides a single, comprehensive housing allowance that better reflects actual housing costs in local markets.
- check_circle BAH is not taxable income
- check_circle Rates are based on median housing costs, not luxury accommodations
- check_circle Service members can keep any money saved by finding less expensive housing
- check_circle BAH rates are protected against decreases during assignment
- check_circle Dual military couples each receive their own BAH
Use our calculator to determine your BAH rate based on your location and personal situation.
search Start Calculator| Branch | Enlisted | Officers |
|---|---|---|
| Army/Air Force | E-1 to E-9 | O-1 to O-10 |
| Navy/Coast Guard | E-1 to E-9 | O-1 to O-10 |
| Marines | E-1 to E-9 | O-1 to O-10 |