Higher 2025 BAH Rates Now In Effect
The 2025 Basic Allowance for Housing (BAH) rates are now in effect. According to a press release on the DoD official site, “Basic Allowance for Housing rates will increase an average of 5.4 percent” when the new rates took effect on January 1, 2025.”
The press release adds that an estimated $29.2 billion will be paid to approximately one million Service members as a result of the increase.
Average BAH rates have increased for 2025, but “different rental markets experienced different market trends, and the 2025 BAH rates reflect those geographic market condition differences.”
The exact amount you receive in BAH depends on several factors, including your rank, dependency status, and the local housing market where you’re stationed.
Read next: BAH, OHA, and GI Bill Housing Allowance Rate Calculators
BAH Increases for 2025
The BAH rates for 2025 see an average increase of 5.4 percent. This adjustment will impact approximately one million service members and their families, with nearly $30 billion in BAH benefits projected to be paid out in 2025.
Determining Your BAH Rate
You can use the BAH rate calculator to find out your specific BAH rate. This tool asks you to input your location and relevant details to determine your entitlement. Remember that your rank and dependency status are significant in the calculation.
How BAH Rates are Established
The Department of Defense conducts a comprehensive review of housing markets across the United States each year. This involves collecting rental cost data and comparing it with information from sources, including surveys, the U.S. Census, and military bases.
The DoD analyzes this data to determine appropriate BAH rates for the upcoming year, ensuring they reflect current housing costs.
Read next: BAH, OHA, and GI Bill Housing Allowance Rate Calculators
Things to Remember about BAH
- BAH is based on rental costs: It’s crucial to understand that BAH is calculated using typical market rent and utility costs. It’s not based on mortgage payments or the expenses associated with homeownership. While you can certainly use your BAH towards a mortgage, the benchmark for its calculation is rental housing.
- Cost-Sharing: The 2025 BAH rates incorporate a cost-sharing element between the DoD and service members. This means BAH is not designed to cover 100% of your housing expenses. Service members contribute a small percentage of the national average housing cost, which varies based on rank and pay grade. The DoD emphasizes that the overall military pay and benefits package remains competitive even with this cost-sharing.
- BAH Rate Protection: Individual rate protection is a valuable feature of the BAH program. This means that if you maintain uninterrupted BAH eligibility in a specific location, your BAH rate will not decrease even if local housing costs decline. This protection is particularly helpful for those committed to long-term leases or contracts.
Read next: BAH, OHA, and GI Bill Housing Allowance Rate Calculators
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
