As a member of the military or a military family, understanding the intricacies of benefits is crucial for financial stability and planning. One such benefit that plays a significant role in housing allowances is the Basic Allowance for Housing (BAH). 

Overview of BAH Rates

The Basic Allowance for Housing (BAH) is a monthly allowance provided to eligible military personnel to offset the cost of housing when you do not receive government-provided housing. BAH rates are determined based on several factors, including location, rank, and dependency status. It's essential to have a clear understanding of how BAH rates work to effectively plan for housing expenses.

Important Changes in 2024

Each year, BAH rates undergo adjustments to reflect changes in the housing market. In 2024, there have been notable updates that impact BAH rates across various locations. 

According to a press release released by The Department of Defense on December 14, 2023:

The Department of Defense has released the 2024 Basic Allowance for Housing rates. Basic Allowance for Housing rates will increase an average of 5.4 percent when the new rates take effect on January 1, 2024. An estimated $27.9 billion will be paid to approximately one million Service members. While average BAH rates increased, different rental markets experience different market trends, and the 2024 BAH rates reflect those geographic market condition differences.

The Department collects rental housing cost data annually for approximately 300 military housing areas in the United States, including Alaska and Hawaii. The Basic Allowance for Housing rate-setting process relies on a wide variety of data sources (e.g., U.S. Census Bureau survey data, Bureau of Labor Statistics Consumer Price Index, commercial subscription rental cost databases, industry-leading online rental listing websites, and input from the Services and local military installation housing offices, among other sources) to obtain high-quality, accurate, current-year housing cost data.

Median market rents and average utilities (including electricity, heat, and water/sewer) comprise the total housing cost for each military housing area and are included in the Basic Allowance for Housing computation. Total housing costs are determined for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. Basic Allowance for Housing rates are then calculated for each pay grade, both with and without dependents, based on the housing choices of civilians with comparable incomes to each Service member pay grade grouping.

The 2024 Basic Allowance for Housing rates, as part of a robust military compensation package, continue the member cost-sharing element at five percent of the national average housing cost by pay grade. These amounts vary by grade and dependency status and range from $85 to $194 monthly for the 2024 rates. Even with this cost-sharing element, the overall military pay and benefits package remains competitive and healthy.

An integral part of the Basic Allowance for Housing program is the provision of individual rate protection to all members. No matter what happens to measured housing costs – including the out-of-pocket expense adjustment – an individual member who maintains uninterrupted Basic Allowance for Housing eligibility in a given location will not see his/her Basic Allowance for Housing rate decrease. This ensures that members who have made long-term commitments in the form of a lease or contract are not penalized if the area's housing costs decrease.

The Department is committed to the preservation of a compensation and benefit structure that provides members with an adequate standard of living to sustain a trained, experienced, and ready force now and in the future.

2024 BAH Rate Lookup 

To look up 2024 BAH Rates based on your zip code, supplemental rate information or download the annual BAH rate data for all locations and all pay grades CLICK HERE

For more information on the Basic Allowance for Housing, including the 2024 Basic Allowance for Housing rates and 2024 Basic Allowance for Housing rate component breakdown, visit https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/.

Service members can calculate their BAH payment by using the Basic Allowance for Housing calculator at: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/