How is BAH calculated?

BAH is based on the median cost of rental housing in your duty station's Military Housing Area (MHA). The DoD surveys rental costs for six housing types, adds average utilities, then applies a 5% cost-sharing reduction. Different pay grades are matched to different housing profiles — junior enlisted get apartment rates, while senior NCOs and officers get single-family home rates.

Is BAH taxable income?

No. BAH is not subject to federal, state, or local income taxes. It is also excluded from Social Security and Medicare (FICA) taxes. However, BAH may be considered as income for non-tax purposes such as VA loan qualification or child support calculations in some states.

What happens if BAH rates decrease in my area?

Individual Rate Protection ensures your BAH rate never decreases as long as you maintain the same duty station, pay grade, and dependency status. If rates drop in your area, you keep the higher previous rate. Your rate will only change if rates increase (you get the higher amount), you PCS to a new location, or your dependency status changes.

Can I use BAH as income for a VA loan?

Yes. Lenders consider BAH as qualifying income for VA home loan applications. Since BAH is tax-free, lenders typically 'gross up' the amount by 25% when calculating your debt-to-income ratio, which increases your purchasing power.

How does BAH work for GI Bill students?

Post-9/11 GI Bill recipients receive a Monthly Housing Allowance (MHA) based on the E-5 with dependents BAH rate for their school's ZIP code, regardless of their actual rank or dependency status. Online-only students receive a reduced national average rate. To estimate your GI Bill housing allowance, select E-5 with dependents and enter your school's ZIP code.

What is the difference between BAH and OHA?

BAH (Basic Allowance for Housing) is for service members stationed in the United States. OHA (Overseas Housing Allowance) is for those stationed outside the U.S. Unlike BAH, OHA reimburses actual housing costs up to a maximum amount and includes a separate utility allowance. You cannot pocket the difference if your rent is below the OHA cap.

How does BAH work for dual military couples?

Dual military couples (both spouses on active duty) each receive BAH based on their individual pay grade and dependency status. If they have children, one member claims 'with dependents' and the other receives 'without dependents.' If they have no children, both receive the 'without dependents' rate. They cannot both claim 'with dependents' for the same dependents.

BAH Calculator

Duty Station ZIP Code

Enter your duty station ZIP, not home address

Pay Grade

Dependency Status

Rate Year

Monthly BAH — E-5 w/ Dependents

$3,975/mo

$47,700/year

Location Details

Military Housing Area info and year-over-year comparison

Military Housing Area

San Diego, Ca

MHA Code: CA038

Annual BAH (2026)

$47,700

Change vs 2025

$-12(-0.3%)

Previous: $3,987/mo

All Ranks — San Diego, Ca

2026 BAH rates for all pay grades at this location

Grade	With Dep.	Without Dep.
E-1	$3,666	$2,763
E-2	$3,666	$2,763
E-3	$3,666	$2,763
E-4	$3,666	$2,763
E-5	$3,975	$3,147

What is BAH?

Basic Allowance for Housing explained

Basic Allowance for Housing (BAH) is a U.S. military benefit that offsets housing costs for service members who do not receive government-provided housing. BAH is based on local civilian housing costs, pay grade, and dependency status. It is tax-free and paid monthly as part of your military compensation.

Tax-Free

Not subject to federal, state, or FICA taxes

95% Coverage

Covers 95% of local housing costs

Rate Protected

Your rate never decreases at same station

How BAH Rates Are Calculated

The DoD methodology behind your rate

The Department of Defense calculates BAH rates annually using data from over 300 Military Housing Areas (MHAs) across the United States.

Rental Surveys

The DoD collects median rental costs for six housing profiles (1-BR apartment through 4-BR single-family home), matched to pay grade ranges.

Utility Costs Added

Average costs for electricity, heating, and water/sewer are added to median rent. Renter's insurance is not included.

5% Cost-Sharing Applied

A member cost-sharing reduction is applied, so BAH covers 95% of total housing costs.

Pay Grade Mapping

Lower enlisted (E-1 to E-4) rates map to apartments, mid-grade to townhouses/duplexes, and senior/officer to single-family homes.

Formula Summary

BAH = (Median Rent + Avg Utilities) x 0.95

BAH Rate Protection

How your rate is protected from decreases

Individual Rate Protection ensures that your BAH never decreases while you maintain the same duty station, pay grade, and dependency status.

Your rate only changes when:

You PCS to a new duty station (new location rate applies)
Your dependency status changes (e.g., marriage or divorce)
Rates increase — you automatically get the higher amount

2026 BAH Rate Changes

National trends and what changed this year

+4.2%

Average national BAH increase for 2026

Some areas saw increases well above the national average, particularly in high-demand metro areas near major military installations. New BAH rates take effect January 1 each year and are announced in mid-December by the Defense Travel Management Office (DTMO).

Common Mistakes

Avoid these when using BAH rates

Using your home ZIP instead of duty station ZIP

BAH is based on where you are stationed, not where you live. Always enter your duty station ZIP code.

Assuming more dependents = more BAH

BAH has only two rates — with dependents or without. One dependent or five dependents yields the same amount.

Confusing BAH with OHA

Overseas Housing Allowance (OHA) is a separate program for members stationed outside the U.S. BAH applies only to stateside duty stations.

GI Bill students using wrong rate

Post-9/11 GI Bill housing allowance uses the E-5 with dependents rate for the school's ZIP code, regardless of your actual rank.

Frequently Asked Questions

Common questions and detailed answers

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Last updated Mar 28, 2026