What is BAH and why is it important?

All too often we hear these terms that clearly have some importance, but we have no clue what they mean. BAH is one of those important military acronyms that everyone should know, whether you are renting or buying a home off base. BAH, or Basic Allowance for Housing, is an allowance to offset the cost of housing when you do not receive government-provided housing. Your BAH depends on your location, pay grade and whether you have dependents. BAH rates are set by surveying the cost of rental properties in each geographic location. Therefore, BAH rates in high-cost areas will be much greater than those in low-cost areas. BAH rates are published on the Defense Travel Management Office Web page (https://www.defensetravel.dod.mil/site/bah.cfm).

It is important to know how much BAH you will receive, especially if you're getting ready to buy a home. An easy way to think of BAH is to think of it like a payment for your mortgage each month. For example, if you are an E6 stationed in Alaska with dependents, you receive $2,082 in Basic Allowance for Housing each month. If you're wanting to make the most of your BAH, you'll want a monthly mortgage payment less than your allotted BAH! 

If you're wondering what your BAH is or what it will be at your next duty station, click here to access the BAH Calculator:

https:www.defensetravel.dod.mil/site/bahCalc.cfm

Some important Q&A's abut BAH include: 

Q: Who is eligible for BAH? 

A: A member assigned to a permanent duty station within the 50 United States, who is not furnished Gov't Housing, is eligible for BAH, based on the member's rank, dependency status, and permanent duty station zip code. A member stationed overseas (except in Hawaii and Alaska), including U.S. territories and possessions, who is not furnished Gov't Housing, is eligible for Overseas Housing Allowance (OHA) based on the member's dependency status. If a member with dependents (except for a member paying child support) is serving an unaccompanied overseas tour, the member is eligible for BAH at the with-dependent rate, based on the dependent's U.S. residence zip code, plus the FSH at the OCONUS PDS, if the member is not provided Gov't Housing overseas. 

Q: If I get promoted, do I get the "protected" BAH amount for my new pay grade?

A: No. If you are promoted, your BAH rate is the then-current published BAH for your new (higher) grade, with the following exception. If you get promoted, and are in a location where the current published BAH for your new grade is lower than the BAH amount you were receiving before, you continue to receive the higher BAH amount. 

Q: What housing costs are used to set BAH rates? 

A: BAH rates are computed using current median market rents and average local expenditures on utilities (electricity, water, sewer, and heating fuel) in each local market area, and will fluctuate as those costs change. 

Q: Does family size make a difference?

A: No. Although BAH distinguishes between with-dependents and without-dependents, the with-dependents compensation is based on comparable civilians using average family size. 

All information is sourced from: https://www.defensetravel.dod.mil/site/faqbah.cfm