Military BAH Rate & Housing Budget Calculator
Estimated Monthly BAH:
Total Monthly Housing Cost:
Monthly Difference:
How Basic Allowance for Housing (BAH) Works
Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status. It is designed to provide uniformed service members equitable housing compensation based on housing costs in local civilian housing markets when government quarters are not provided.
The Department of Defense (DoD) determines BAH rates by surveying the cost of rental properties in each Military Housing Area (MHA). The calculation considers median rent and average utility costs (including electricity, heat, and water/sewer) for various housing types suitable for different ranks.
Key Factors Influencing Your BAH Rate
- Geographic Location: The ZIP code of your permanent duty station determines your MHA. High-cost areas like San Francisco or New York City yield significantly higher BAH than rural areas.
- Pay Grade (Rank): As your seniority increases, so does your allowance. The DoD assumes higher-ranking members require larger or more sophisticated housing.
- Dependency Status: Members "with dependents" (spouses or children) receive a higher rate than those "without dependents" to account for the need for additional bedrooms.
BAH Calculation Example
Consider an E-5 stationed at Fort Hood, TX. The DoD calculates the median cost for a two-bedroom apartment in that area. If the median rent is $1,200 and utilities average $250, the total housing cost is $1,450. As of recent policy changes, BAH is intended to cover 95% of these costs, leaving a 5% out-of-pocket responsibility for the member.
| Factor | How It's Measured | Impact on Rate |
|---|---|---|
| MHA ZIP Code | Local Rental Market Data | High (up to 300% variance) |
| Dependents | Legal Spouses/Children | Approx. 20-30% increase |
| Rank | Current Pay Grade | Increments by seniority |
Common BAH Questions
Is BAH taxable? No, BAH is a non-taxable allowance. This significantly increases its effective value compared to civilian income.
Can I keep extra BAH? Yes. If you find housing that costs less than your BAH allowance (including utilities), you are entitled to keep the difference as take-home pay.
Does BAH cover my mortgage? While BAH is calculated based on rental data, you can use the allowance to pay for a mortgage. However, BAH rates can fluctuate annually, which may impact your ability to cover fixed mortgage payments if rates decrease (though "Rate Protection" usually applies to those already stationed there).