';html+='Difference: $'+Math.abs(diff).toFixed(2)+' ('+statusText+')
';html+='1. Total Expenses = Rent ($'+rent.toFixed(2)+') + Utilities ($'+util.toFixed(2)+') = $'+totalCost.toFixed(2)+'
';html+='2. Comparison = BAH ($'+bah.toFixed(2)+') – Expenses ($'+totalCost.toFixed(2)+') = $'+diff.toFixed(2)+'
';html+='Note: The DoD goal is for BAH to cover 95% of median housing costs.
$'+maxRent.toFixed(2)+'
';html+='To stay within your housing allowance, your rent should not exceed your BAH minus your estimated utility costs.
';html+='$'+bah.toFixed(2)+' (BAH) – $'+util.toFixed(2)+' (Utilities) = $'+maxRent.toFixed(2)+' for Rent.
Using the BAH Calculator
The Basic Allowance for Housing (BAH) is a critical component of military compensation, designed to provide service members equitable housing compensation based on the local cost of living in various geographic duty stations. This bah calculator helps you bridge the gap between your monthly allowance and actual market prices.
Whether you are transitioning to a new duty station (PCS) or looking to rent a new home, understanding your "out-of-pocket" expense is vital. Since 2015, the Department of Defense has transitioned to a model where BAH is intended to cover 95% of housing costs, meaning most service members can expect a 5% out-of-pocket contribution.
- Monthly BAH Rate
- The total monthly housing allowance found on your LES (Leave and Earnings Statement). This is based on your rank, dependency status, and ZIP code.
- Monthly Rent
- The contractual rent amount you pay to your landlord or property management company.
- Monthly Utilities
- The estimated cost for electricity, water, gas, and trash. This does not typically include optional services like internet or cable.
How BAH is Calculated
The DoD determines BAH rates by collecting rental market data annually for approximately 300 Military Housing Areas (MHAs). The calculation involves the median rent and average utility costs for specific housing profiles (e.g., a two-bedroom apartment or a three-bedroom single-family home) that correspond to specific ranks.
BAH Coverage = (Median Rent + Average Utilities) × 0.95
Key factors that influence your final number in the bah calculator include:
- Duty Station ZIP Code: Costs vary wildly between San Diego, CA, and Fort Hood, TX.
- Pay Grade: Higher ranks receive higher allowances to reflect professional seniority.
- Dependency Status: Service members with at least one dependent (spouse or child) receive a significantly higher "With-Dependent" rate.
BAH Calculation Example
Scenario: An E-6 with dependents is stationed at NAS Jacksonville, FL. Their current BAH rate is $2,150. They find a rental home for $1,950 per month and estimate their utilities will be $300 per month.
Step-by-step solution using the bah calculator logic:
- Identify BAH: $2,150
- Calculate Total Expenses: $1,950 (Rent) + $300 (Utilities) = $2,250
- Find the Difference: $2,150 (BAH) – $2,250 (Expenses) = -$100
- Result: The service member has an out-of-pocket cost of $100 per month.
Common Questions
Does BAH change if I get promoted?
Yes. When you are promoted, your BAH rate will increase to the rate for your new rank in your current location. However, due to "Rate Protection," your BAH will never decrease as long as you remain at the same duty station, even if the general market rates for that area drop.
What happens if two service members are married?
In "dual-military" marriages, both members receive BAH. If there are no children, both typically receive the "Without-Dependent" rate. If there are children, one member receives the "With-Dependent" rate while the other receives the "Without-Dependent" rate. You can use our bah calculator to sum both allowances and compare them against a single high-quality mortgage or rental payment.
Is BAH taxable?
No. One of the greatest benefits of the BAH system is that it is a non-taxable allowance. This means the $2,000 you see in the bah calculator is worth significantly more than $2,000 in taxable salary because you do not pay federal or state income tax on it.
What is OHA vs BAH?
BAH is for service members stationed within the United States. Overseas Housing Allowance (OHA) is for those stationed OCONUS (Outside the Continental United States). While BAH allows you to keep any surplus money, OHA is a "use-it-or-lose-it" system where the military only pays the exact amount of your rent, up to a maximum cap.