Note: This is an estimate based on 2023 average regional adjustments. Actual rates vary by specific Military Housing Area (MHA).
Understanding Your 2023 BAH Rates
The Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status. For the 2023 calendar year, the Department of Defense (DoD) announced a significant increase in BAH rates, averaging 12.1% nationwide to account for the rising cost of rent and utilities across the United States.
How 2023 BAH is Calculated
The calculation for 2023 involves three primary variables:
Pay Grade: Higher ranks typically receive a higher housing allowance to reflect increased responsibility and standard of living expectations.
Geographic Location (Zip Code): BAH is tied to the rental market data of your permanent duty station (PDS). High-cost areas like San Diego, CA (MHA CA040) or Honolulu, HI (MHA HI165) see significantly higher rates than rural areas.
Dependency Status: Service members with at least one legal dependent (spouse or child) receive a "With Dependents" rate, which is higher than the "Without Dependents" rate.
2023 BAH Rate Examples
To provide context for your calculation, here are some representative 2023 monthly averages for an E-5 with dependents in common locations:
Location
Zip Code
2023 Est. (E-5 w/ Dep)
San Diego, CA
92101
$3,663
Norfolk, VA
23501
$2,115
Fort Hood, TX
76544
$1,482
Frequently Asked Questions
What happens if BAH rates decrease?
The DoD employs "Rate Protection." If the BAH rate for your location decreases, your individual allowance will not go down as long as you maintain continuous eligibility (staying at the same rank and duty station). You will always receive the higher amount.
Is BAH taxable income?
No. One of the greatest benefits of BAH is that it is a non-taxable allowance, meaning 100% of the calculated amount goes toward your housing expenses without being subject to federal or state income tax.