How to Use the BAH Calculator
The BAH Calculator is designed for military service members to accurately manage their Basic Allowance for Housing when circumstances change. While the Department of Defense sets annual rates based on zip code and rank, service members often need to calculate partial payments during a Permanent Change of Station (PCS) or compare rates between different duty stations.
To use this tool effectively, follow these steps:
- Select Calculation Type
- Choose "Prorate" if you are moving mid-month, "Compare" to see the difference between your current and future duty station rates, or "Daily Rate" to find out exactly how much housing allowance you earn per day.
- Monthly BAH Rate
- Enter the full monthly BAH amount for your rank and zip code (with or without dependents).
- Days in Month
- Enter the actual number of days in the current month (28, 29, 30, or 31). The military calculates BAH based on actual calendar days when pro-rating.
How BAH is Calculated
Basic Allowance for Housing is a U.S. based entitlement to provide uniformed service members equitable housing compensation based on housing costs in local civilian housing markets. The BAH calculator uses the following primary formula for pro-rating partial months:
Prorated Payment = (Monthly BAH Rate ÷ Days in Month) × Days Entitled
When comparing two different locations or pay grades, the formula is:
Monthly Difference = |Rate A – Rate B|
- Rank/Pay Grade: Higher ranks typically receive higher BAH rates.
- Dependency Status: Service members with at least one "primary" dependent receive a higher rate than those without.
- Location (MHA): Rates are determined by the Military Housing Area (MHA) of your duty station.
BAH Calculation Example
Scenario: An E-6 is PCSing from Fort Hood to San Diego. They depart Fort Hood on June 12th. They are entitled to Fort Hood BAH for the first 12 days of June. The Fort Hood monthly rate is $1,800.
Step-by-step solution:
- Monthly BAH Rate = $1,800
- Days in June = 30
- Days Entitled = 12
- Daily Rate Calculation: $1,800 / 30 = $60.00 per day
- Total Entitlement: $60.00 × 12 = $720.00
- Result: The service member will receive $720.00 for the first portion of the month.
Common Questions
Is BAH taxable income?
No, BAH is a non-taxable allowance. This is one of the most significant benefits of military pay, as the "gross" value of your BAH is actually higher than its dollar amount because you do not pay federal or state income taxes on it.
What happens to my BAH if the rates go down?
The military has a "Rate Protection" policy. If the BAH rates for your location decrease, you will continue to receive the higher previous rate as long as you do not have a change in pay grade (reduction in rank) or a change in dependency status. If rates go up, you will receive the new, higher rate automatically.
How is BAH calculated for dual-military couples?
If a dual-military couple has no children, both members typically receive the "Without Dependents" rate for their respective ranks. If they have children, only one member (usually the higher-ranking one) can claim the "With Dependents" rate, while the other receives the "Without Dependents" rate.
Factors Influencing Your BAH Rate
The Department of Defense conducts annual surveys of rental markets across the United States. The BAH calculator results you see online from the DoD reflect these median rental costs, including utilities like electricity, heat, and water. It is designed to cover approximately 95% of housing costs, with a 5% out-of-pocket expectation for the service member, though this varies by year and legislative changes.