Military BAH: Complete Guide to Basic Allowance for Housing

What Is BAH?

Basic Allowance for Housing (BAH) is a U.S. military benefit that provides service members with a monthly housing allowance when government quarters (on-base housing) are not provided. It's designed to offset the cost of housing in the civilian market.

Key Points About BAH

Non-taxable income (doesn't count toward federal income tax)
Paid monthly as part of your regular military pay
Amount varies by location, rank, and dependency status
Updated annually (usually January 1st)

BAH is one of the most valuable benefits for military members living off-base. Combined with your base pay and other allowances, it helps ensure you can afford suitable housing for you and your family wherever you're stationed.

Who Is Eligible for BAH?

BAH eligibility depends on your status and housing situation:

✓ Generally Eligible

Active duty members not living in government housing
Members with dependents (typically receive BAH even in some barracks situations)
Reserve/Guard members on active duty orders for 30+ days
Officers and enlisted members (E-1 through O-10)

✗ Generally NOT Eligible

Members assigned to and living in government quarters
Single members in pay grades E-1 through E-4 (often required to live in barracks)
Recruits in basic training
Members receiving other housing compensation (like OHA overseas)

Junior Enlisted Members

Single E-1 to E-4 members are typically required to live in barracks/dormitories if space is available. However, if barracks are at capacity or you have special circumstances, you may be authorized to live off-base and receive BAH. Members with dependents usually receive BAH regardless of rank.

How BAH Rates Are Calculated

The Department of Defense calculates BAH rates annually using a complex process that considers local housing costs:

Step 1: Housing Data Collection

The DoD collects rental cost data for each Military Housing Area (MHA), including apartments and single-family homes of various sizes.

Step 2: Housing Profiles by Pay Grade

Different pay grades are assigned different housing standards. A junior enlisted member's profile differs from a senior officer's.

Step 3: Total Housing Cost

For each pay grade, BAH is calculated to cover median rent plus average utilities (electricity, gas, water, sewer, renter's insurance).

Step 4: Annual Adjustment

Rates are updated each year to reflect changes in local housing markets. New rates typically take effect January 1st.

Important: BAH is designed to cover approximately 95% of housing costs for your pay grade in your area. The remaining 5% is considered your share of housing costs.

Factors That Affect Your BAH

Three main factors determine your BAH rate:

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Location (ZIP Code)

Your duty station ZIP code determines the Military Housing Area and local housing costs used in the calculation.

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Pay Grade (Rank)

Higher ranks receive higher BAH rates, reflecting larger housing standards expected at senior pay grades.

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Dependency Status

Members with dependents receive higher BAH rates than those without, regardless of number of dependents.

2025 BAH Rate Examples

Location	E-5 w/Dep	E-7 w/Dep	O-3 w/Dep
San Diego, CA	$3,456	$3,873	$4,089
Fort Bragg, NC	$1,557	$1,773	$1,932
Washington, DC	$2,739	$3,057	$3,252
Minot AFB, ND	$1,371	$1,485	$1,566

*Rates are examples and may not reflect current year. Always check official DoD rates.

BAH With vs Without Dependents

BAH comes in two rates: "with dependents" and "without dependents." This distinction is important:

With Dependents

Spouse
Children (biological, adopted, stepchildren)
Parents under certain circumstances
Other dependents enrolled in DEERS

Note: You get the same rate whether you have 1 dependent or 10.

Without Dependents

Single service members
Divorced with no custody
No qualifying dependents

Rate: Typically 20-25% less than with-dependent rate.

Dual Military Couples

When both spouses are active duty military, each receives BAH based on their individual circumstances:

No children: Both receive BAH at "without dependent" rate
With children: One member claims the dependents and receives the higher rate; the other receives the without-dependent rate
Separated (geographic bachelors): Special rules may apply; consult your finance office

BAH Rate Protection

One of the best features of BAH is "rate protection"—if rates decrease in your area, you keep your higher rate as long as certain conditions are met:

You Keep Your Rate If:

You don't PCS (permanent change of station)
Your dependency status doesn't decrease (e.g., divorce)
You aren't demoted
You don't have a break in service

When Rate Protection Ends

If you PCS to a new location, you'll receive the current BAH rate for your new duty station—even if it's lower than what you were receiving. Rate protection is location-specific.

Partial BAH and Other Types

Partial BAH

A reduced amount paid to members living in government housing who have dependents living elsewhere. This helps cover the cost of maintaining a separate household.

BAH-Diff (Differential)

Paid when a member without dependents is assigned to single-type quarters but is authorized to receive BAH for dependents' housing at a different location.

OHA (Overseas Housing Allowance)

Replaces BAH for members stationed overseas in areas without government housing. OHA works differently—it reimburses actual housing costs up to a maximum.

BAH Reserve Component/Transit

Special BAH rates for reservists on active duty for less than 30 days or members in transit status.

Tips for Maximizing Your BAH

1. Live Below Your BAH

BAH is yours to keep whether you use it all or not. Finding housing below your BAH rate puts extra money in your pocket each month.

2. Consider Roommates

If you're single, splitting rent with another service member can dramatically reduce your housing costs while you each collect full BAH.

3. Look Just Outside Base

Areas immediately surrounding bases often have inflated rents. Looking slightly further away may yield better deals on comparable housing.

4. Understand Your Market

In high-cost areas, you may need to supplement BAH. In lower-cost areas, pocketing extra BAH is easier. Research before you house hunt.

5. Time Your PCS

If possible, coordinate your arrival with favorable lease timing. Arriving mid-lease cycle may limit options and increase costs.

6. Consider Buying

In some markets, monthly mortgage payments are less than rent. Your BAH can build equity instead of paying a landlord—but consider your tour length.

Common Questions

Is BAH taxable?

No, BAH is not subject to federal income tax. This makes it even more valuable—$2,000 in BAH is worth more than $2,000 in regular taxable income.

What if my rent is more than my BAH?

You're responsible for the difference. In high-cost areas like San Francisco or New York, many service members pay out of pocket above their BAH.

Do I get BAH while deployed?

Generally yes, if you were receiving BAH before deployment. You maintain your residence and continue receiving BAH to cover those costs.

Can I get BAH based on where my family lives?

In certain circumstances (like geographic bachelor status), yes. Otherwise, BAH is based on your duty station. Talk to your finance office about your specific situation.

When do BAH rates change?

Rates are updated annually, typically effective January 1st. The DoD usually publishes new rates in December for the upcoming year.

Summary: Key Takeaways

BAH is a tax-free housing allowance for service members not living in government quarters
Rates depend on: duty station ZIP code, pay grade, and dependency status
With-dependent rates are higher than without-dependent rates
Rate protection keeps your BAH if local rates decrease (with conditions)
BAH is yours to keep—living below your allowance puts money in your pocket
Rates are updated annually (January 1st) to reflect housing market changes