Basic Allowance for Housing, or BAH, is money provided to Service members stationed in the U.S. for fair housing compensation.  As an allowance, BAH is not considered part of a Service member's pay. Due to that designation, Service members are not taxed on the amount of BAH received each month. For more information on BAH, visit the Defense Travel Management Office 

BAH Factors

There are three factors that determine the amount of BAH allowance a Service member may receive:

  1. Pay grade: Allowances increase as time in service and pay grade increases.

  2. Geographic duty location:  A Service members assignment location is factored into the BAH calculation. Note that a Service member may choose to live in an area that differs from their assigned location, but BAH will still be calculated based on their assigned location.

  3. Dependents: Allowance amounts vary depending on a Service member's dependent status. 

BAH Calculation

To determine monthly BAH rates, the Department of War factors in these considerations in conjunction with the BAH Factors listed above:

1. Current rental market rates. 

2. Average cost of utilities

3. Home type and number of rooms

BAH rates are reviewed and released annually, usually in mid-December. While this review typically leads to an increase, decreases happen in some circumstances.

If rates decrease, Individual rate protection guarantees Service members will not lose money on Jan. 1 when new rates take effect, as they are grandfathered in at the rate received at the time of their PCS. 

A Service member's rate will only change if:

  • They are assigned a new duty station
  • Have a reduction in their pay grade
  • Change their claimed dependent status
Expand List item 16Collapse List item 16  BAH Calculator

To calculate your BAH rate by rank and location, view the basic housing calculator.

Expand List item 13Collapse List item 13  BAH Differential (BAH-Diff)

BAH-Diff is the housing allowance amount for Service member's assigned to single-type quarters and who is also authorized a basic allowance for housing due to a required child support payment. BAH-Diff is equal to the difference between BAQ with dependents and BAQ without dependents. Rates are published annually and are calculated by increasing the previous year's rates by the percentage growth of military basic pay. Note that a Service member is not entitled to BAH-Diff if the monthly child support amount is less than the BAH-Diff.

Expand List item 14Collapse List item 14  BAH Reserve Component/Transit (BAH RC/T)

BAH RC/T is a non-locality housing allowance for Service members in specific situations, such as reservists on active duty for 30 or fewer days. It also applies when a Service member is in transit from selected areas, such as overseas, where no prior BAH rate exists. BAH RC/T:

  • Does not vary by geographic location
  • Is published annually
  • Is determined by increasing the previous year's rates by the national average percentage growth of housing costs.
Expand List item 12Collapse List item 12  BAH with or without Dependents

United States

  • Service members stationed within the 50 United States, who are not provided with government housing, are eligible for Basic Allowance for Housing (BAH), based on the member's dependency status at the permanent duty ZIP Code.

Overseas

  • Service members stationed overseas, including U.S. protectorates, who are not furnished government housing, are eligible for Overseas Housing Allowance (OHA) based on the member's dependency status.
  • If the Service member is on an unaccompanied overseas tour, they are eligible for BAH at the "with dependents" rate, based on the dependent's US residence ZIP Code, plus OHA at the "without dependents" rate, if the member is not furnished government housing overseas. 
Expand List item 15Collapse List item 15  Partial BAH

Partial BAH is paid to service members without dependents who live on base in government quarters.