Military BAH & Housing Budget Calculator
Housing Allowance Breakdown
Understanding Your Basic Allowance for Housing (BAH)
Basic Allowance for Housing (BAH) is a U.S. based entitlement to help service members cover the costs of housing in the private sector. The amount you receive is based on your geographic duty location, pay grade, and dependency status.
How BAH is Calculated
The Department of Defense (DoD) determines BAH rates by collecting data on rental costs in over 300 Military Housing Areas (MHAs). The calculation includes:
- Median Local Rental Cost: Based on the type of housing appropriate for your rank.
- Utilities: Average costs for electricity, heat, and water.
- The 95% Rule: Current BAH rates are designed to cover 95% of housing costs, meaning service members are expected to pay roughly 5% out-of-pocket.
BAH with Dependents vs. Without Dependents
Service members with at least one "lawful dependent" (spouse or child) receive a higher BAH rate. This rate does not increase for additional dependents; it is a flat "with-dependents" rate regardless of whether you have one child or five.
Example Calculation
Suppose an E-6 with dependents is stationed at San Diego (Zip 92101). If their 2024 BAH rate is $3,600:
- Rent: $2,900
- Utilities: $400
- Total Expense: $3,300
- Monthly Savings: $300 (Pocketed)
In this scenario, the service member is living below their allowance, which allows them to use the remaining $300 for other financial goals or savings.
Strategies for Military Families
To maximize your allowance, consider living in areas where the rental market has not yet caught up to BAH increases, or choosing a smaller home than your rank permits. Remember that BAH is non-taxable, making it one of the most valuable parts of the military compensation package.