Complete Guide to BAH Rates for 2025

Understanding BAH

Basic Allowance for Housing (BAH) helps service members cover housing costs when government quarters aren’t available. BAH rates vary by location, pay grade, and dependent status. This tax-free allowance often represents a significant portion of total military compensation.

How BAH Rates Are Calculated

The Department of Defense surveys housing costs annually in each military housing area. Rates reflect median rental costs for appropriate housing based on pay grade. Higher cost-of-living areas receive higher BAH rates.

With vs Without Dependents

Service members with dependents receive higher BAH rates. Dependent status includes spouses and children. The rate difference can be substantial—often several hundred dollars monthly. Single service members receive the “without dependents” rate.

Rate Protection

If BAH rates decrease in your area, you keep your current rate while stationed there. This protection continues until you PCS, change dependent status, or receive a promotion. Rate increases apply immediately to everyone.

Living Below BAH

You keep any BAH you don’t spend on housing. Living in affordable housing or splitting rent with roommates lets you pocket the difference. Many service members use this strategy to build savings.

Looking Up Your Rate

The Defense Finance and Accounting Service (DFAS) publishes BAH rates online. Look up rates by zip code, pay grade, and dependent status. Use this information when planning PCS moves or housing decisions.