The Basic Allowance for Housing plays an important role in the monthly compensation of servicemembers. In 2025, the Department of Defense is proposing a 4.5% increase in the national average for the Basic Allowance for Housing (BAH). If this proposal is approved in the defense budget, the new rate will take effect for all military branches on January 1, 2025.
What is BAH?
Basic Housing Allowance (BAH) is a service member benefit for 95% of military housing costs. Since it only covers 95%, military members are responsible for the other 5% of their cost of living.
When calculating individual BAH amounts, factors such as grade, number of dependents, and the cost of living where the military member is stationed are considered.
Moreover, service members with an OCONUS (outside of the continental United States) PCS assignment may receive more money to offset living overseas costs. This is called Overseas Housing Allowance (OHA).
Below, look through our 2025 adjusted BAH rate tables to see how much you could receive next year.
Note: The proposed 4.5% increase is currently under consideration, but both the White House and lawmakers appear ready to reach an agreement on it.
How Are BAH Rates Calculated?
BAH rates are Calculated based on housing research and marketing analysis conducted by the Department of Defense (DoD) and then congressional approval of those proposed figures. Here is the typical workflow the DoD follows to set yearly BAH rates:
- Housing Market Analysis
- Nationwide Housing Cost Comparison
- Calculations for Individual Categories (Grades, Dependents, Zip Codes)
- Congressional Approval
BAH rates increase each year because the world’s cost of living is also consistently increasing. In addition, BAH rates fluctuate depending on each military installation’s zip code since some areas have higher living costs.
For instance, service members reporting to Joint Base Pearl Harbor—Hickam in Hawaii are expected to receive more money for BAH than someone reporting to Camp McCain in Mississippi. This is because Hawaii is a more expensive place to live than Mississippi. Check official requirements for a VA loan.
BAH Rate Protection
Military members may receive BAH rate protection since the cost of living in any given area can change due to the economy and housing market trends. This means their rates are guaranteed to stay the same as long as they are stationed at that installation, even if the cost of living goes down.
BAH rate protection was established to protect military members and their families from unexpected financial hardship.
Historical BAH Rate Increases
| Year | Proposed Increase/Decrease | Actual Increase |
| 2024 | 3.9% | 5.4% |
| 2023 | 4.6% | 12.1% |
| 2022 | 3.1% | 5.1% |
| 2021 | 2.90% – 3.70% | 2.90% |
| 2020 | 2.90% | 2.8% |
| 2019 | 2.90% | 2.55% |
| 2018 | 2.90% | 0.7% |
| 2017 | 2.90% | 2.4% |
| 2016 | 1.30% | 3.4% |
| 2015 | -5.00% | 0.5% |
| 2014 | 4.20% | 5.00% |
| 2013 | 4.20% | 3.80% |
| 2012 | 4.20% | 2.0% |