The U.S. Department of Defense announced a 5.4% average increase in Basic Allowance for Housing Rates in 2025. Starting January 1, the 5.4% average BAH rate increase works toward offsetting the high inflation seen over the past year.
How Will New BAH Rates Affect Me?
In 2025, the Department of Defense calculated BAH rates to cover roughly 95% of housing costs (including rent and utilities) in nearly 300 military housing areas. An estimated $29.2 billion will be paid to over a million service members. The increase in BAH rates reflects the unique market conditions experienced nationwide over the last year. While BAH rates increased on average, they did not increase everywhere.
BAH Rate Protection ensures your BAH will not go down if you live in an area where rates decreased. Instead, you will remain at your previous rate unless one of these circumstances apply:
- Permanent change of station (PCS): you will receive the current BAH rates at your new duty station.
- Demotion: you will receive the current BAH rate for your new pay grade, regardless of whether or not it is lower than your current rate.
- Promotion: you will receive the BAH for your new pay grade, or your previous pay grade, whichever is higher. BAH rates may be higher for a lower pay grade if you were grandfathered into an old rate and BAH rates have since dropped for your duty location.
- Change in dependency status: If you gain a dependent and didn’t have one before, your status will change to the BAH “with dependents” rate. If you lose your dependent(s) due to divorce, aging out of dependency or a death in the family, you will receive the BAH “without dependents” rate.
How Are BAH Rates Determined?
BAH rates are based on duty location, pay grade, and dependency status (with or without dependents). The rates are based on rent and utilities in nearly 300 civilian housing markets. BAH rates no longer include the cost of renters’ insurance. I’m a big believer that service members should buy renters’ insurance, whether they live in the barracks or off-base.
Types of BAH
- Basic allowance for housing (BAH) – Allowance for military members to offset the cost of housing when government housing is not available.
- BAH with and without dependents rates – BAH is also broken into separate rates for service members who have dependents and those who do not. The dependent rate is the same regardless of the number of dependents you have. Dual-military couples without additional dependents each receive the without-dependents rate. If the dual-military couple has dependents, one will receive the with-dependents rate, and the other will receive the without-dependents rate.
- Partial BAH – Service members without dependents who reside in government quarters receive a partial housing allowance.
- BAH Reserve component/transit (BAH RC/T) / BAH Type II – Members of the Guard or Reserves who are activated for fewer than 30 days receive a different housing allowance. This allowance also applies to members who are in transit from a duty location with no prior BAH rate (such as overseas). BAH II is a fixed rate based on the national average for housing and does not vary by location.
- BAH-Diff – BAH Differential is the housing allowance amount for a member who is assigned to single quarters but receives BAH to pay child support. Service members are not entitled to BAH-Diff if the monthly rate of child support is less than the BAH-Diff amount.
- Overseas Housing Allowance (OHA) – Similar to BAH, but only available to members stationed overseas or in U.S. protectorates.
2025 BAH Rates
The Defense Travel Management Office is the official source for BAH rates. You can visit the site or use our BAH calculator to find the current rates for your zip code.
Rates vary by pay grade and dependency status.
Using BAH on $0 Down VA Home Loans
An incredibly powerful benefit of the VA home loan is military members’ ability to use their Basic Allowance for Housing (BAH) towards their mortgage payments. Your BAH could cover most or even all of your monthly mortgage payment.
Check your $0 down home loan eligibility today.
2025 BAH Rate Increase
Here are some of the military housing areas eligible for the highest BAH hikes (based on E-5, with dependents), according to the Defense Travel Office:
- Hawaii: Hawaii County, Maui County, Kauai County
- Texas: College Station, Fort Cavazos
- Michigan: Traverse City, Ann Arbor
- Massachusetts: Nantucket, Cape Cod-Plymouth
- North Dakota: Fargo
- Alabama: Birmingham
- New Mexico: White Sands MR, Las Cruces
- Minnesota: Duluth
- West Virginia: Charleston
- New York: Syracuse
Are You Eligible for the 2025 BAH Increase?
Calculate How Much You’ll Get Here.
2025 Non-Locality BAH Rates – BAH Type II & BAH Differential
Members of the Guard and Reserves who are activated for less than 30 days receive BAH Type II, which is also referred to as non-locality BAH. This benefit is less than the normal BAH rate for most locations.
Members who are activated for more than 30 days will receive the same BAH rate as their active-duty counterparts, which will be based on their home of record’s zip code and whether or not they have dependents.
BAH Type II is also given to military members who are in transit from a location that does not have a BAH rate (such as a PCS from an overseas location).
2025 BAH Type II Rates
| Pay Grade | Without Dependents | With Dependents |
|---|---|---|
| O-10 | $2,244.90 | $2,762.40 |
| O-9 | $2,244.90 | $2,762.40 |
| O-8 | $2,244.90 | $2,762.40 |
| O-7 | $2,244.90 | $2,762.40 |
| O-6 | $2,058.60 | $2,486.40 |
| O-5 | $1,982.40 | $2,396.70 |
| O-4 | $1,836.60 | $2,112.30 |
| O-3 | $1,473.00 | $1,747.80 |
| O-2 | $1,166.70 | $1,491.30 |
| O-1 | $1,001.70 | $1,335.00 |
| O3E | $1,589.70 | $1,878.30 |
| O2E | $1,351.80 | $1,695.30 |
| O1E | $1,175.70 | $1,566.90 |
| W-5 | $1,866.90 | $2,040.00 |
| W-4 | $1,657.50 | $1,870.20 |
| W-3 | $1,393.50 | $1,714.20 |
| W-2 | $1,236.90 | $1,575.00 |
| W-1 | $1,037.10 | $1,363.50 |
| E-9 | $1,360.50 | $1,794.60 |
| E-8 | $1,250.70 | $1,655.10 |
| E-7 | $1,152.00 | $1,535.70 |
| E-6 | $1,064.70 | $1,419.30 |
| E-5 | $958.20 | $1,277.40 |
| E-4 | $833.40 | $1,110.00 |
| E-3 | $774.30 | $1,032.00 |
| E-2 | $738.60 | $983.70 |
| E-1 | $738.60 | $983.70 |
2025 BAH Differential Rates
Servicemembers who live on base but are paying child support may be eligible for BAH Differential, also referred to as BAH-DIFF. According to the Defense Travel Website:
“BAH-DIFF is the housing allowance amount for a member who is assigned to single-type quarters and who is authorized a BAH solely to pay child support. A member is not authorized BAH-DIFF if the monthly rate of that child support is less than the BAH-DIFF amount.
Defense Travel Management Office
DTMO updates the BAH-DIFF annually based on changes to military basic pay. For more information, contact your finance office or consult Department of Defense Financial Management Regulation (DoDFMR), Vol. 7A, paragraphs 260301 and 260504.”
You can see the 2025 BAH Differential Rates here:
| Pay Grade | BAH Differential |
|---|---|
| O-10 | $429.30 |
| O-9 | $429.30 |
| O-8 | $429.30 |
| O-7 | $429.30 |
| O-6 | $364.80 |
| O-5 | $352.50 |
| O-4 | $235.20 |
| O-3 | $234.90 |
| O-2 | $276.90 |
| O-1 | $299.10 |
| O3E | $245.40 |
| O2E | $293.70 |
| O1E | $344.70 |
| W-5 | $146.70 |
| W-4 | $180.90 |
| W-3 | $272.40 |
| W-2 | $288.00 |
| W-1 | $279.00 |
| E-9 | $368.10 |
| E-8 | $345.00 |
| E-7 | $399.30 |
| E-6 | $386.40 |
| E-5 | $328.50 |
| E-4 | $283.80 |
| E-3 | $232.80 |
| E-2 | $311.10 |
| E-1 | $368.10 |
More Information on BAH
Check out our BAH Guide to learn more about BAH calculations, eligibility, types of BAH and more.
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Bradley A. Thomas says
How do I enroll in receiving BAH?
Ryan Guina says
Bradley, BAH enrollment is done through your finance office. It will generally be offered when you are authorized to live off base. This may happen when you join the military or when you gain authorization to move out of the barracks. Your finance office can provide more information. Best wishes!