BAH (Basic Allowance for Housing) is a tax-free stipend paid to U.S. military members to help cover the cost of housing when government quarters are not provided.
Key Facts:
Tax-free income (huge advantage)
Paid directly to service member (not landlord)
Based on rank, location, and dependents
Updated annually (typically January 1st)
Guaranteed by Department of Defense
Most reliable income source for landlords
How BAH is Calculated
Three Primary Factors
1. Pay Grade (Rank)
Higher ranks receive more BAH:
Enlisted:
E1-E4: $800-$1,500/month (varies by location)
E5-E6: $1,200-$2,000/month (most common renters)
E7-E9: $1,500-$2,500/month (senior enlisted)
Officers:
O1-O3: $1,500-$2,500/month (junior officers)
O4-O6: $2,000-$3,500/month (senior officers)
O7+: $2,500-$4,500/month (flag officers)
These are typical ranges - actual amounts vary significantly by location
2. Duty Station Location
Based on ZIP code of military installation:
High-Cost Areas (examples):
San Diego, CA: E5 with dependents ~$2,500/month
Washington, DC: E5 with dependents ~$2,400/month
San Francisco, CA: E5 with dependents ~$3,600/month
Honolulu, HI: E5 with dependents ~$2,700/month
Moderate-Cost Areas:
Fort Campbell, KY: E5 with dependents ~$1,400/month
Fort Hood, TX: E5 with dependents ~$1,300/month
Norfolk, VA: E5 with dependents ~$1,700/month
Lower-Cost Areas:
Rural installations: E5 with dependents ~$900-$1,100/month
3. Dependent Status
Two rates:
With Dependents (higher):
Married service members
Single parents with custody
Service members with other legal dependents
Typical difference: $200-$600 more
Without Dependents (lower):
Single service members (no children)
Lower rate than "with dependents"
Note: Having multiple children doesn't increase BAH - rate is same for 1 child or 5 children.
How BAH Rates are Set
Annual Process:
DoD surveys rental market in each area
Analyzes median rent costs
Sets BAH to cover most housing (not 100%)
Updates rates January 1st annually
Members keep rate from time they PCS'd
Rate Protection:
BAH won't decrease if rates drop next year
Members keep rate until they PCS again
Provides stability for 2-4 years typically
BAH Payment Schedule
When BAH is Paid
Most Common:
1st and 15th of each month
Twice-monthly payments
Each payment is half of monthly BAH
Example:
Monthly BAH: $1,800
Paid $900 on 1st
Paid $900 on 15th
Alternative (some service members):
Once monthly on 1st
Full monthly amount
Varies By:
Service branch
Individual election
Pay system
How BAH is Paid
Direct Deposit:
Paid to service member's bank account
Never paid directly to landlord
Combined with base pay and other allowances
Automatic and reliable
Important: Service member must then pay rent to landlord. BAH is the member's money to use for housing.