The Department of Defense (DoD) announced a 5.4% average increase for Basic Allowance for Housing (BAH) rates effective January 1, 2024. This continues a trend of rising BAH to keep pace with housing market fluctuations.
What is BAH?
BAH is a monthly allowance paid to service members living in the civilian housing market because government quarters are unavailable. It’s designed to cover rent and utility costs in a specific location, taking into account pay grade and dependency status.
BAH Rate Increases
While the average increase is 5.4%, the DoD emphasizes that local housing markets can vary significantly. BAH rates are calculated based on rental cost data for various housing types in over 300 military housing areas (MHAs) across the U.S., including Alaska and Hawaii. This ensures service members receive an allowance that reflects the specific housing costs in their duty station.
Finding Your BAH Rate
Individual BAH rates can’t be easily summarized in an article because they depend on three key factors:
- Pay Grade: Enlisted personnel and officers have different BAH tiers.
- Dependency Status: Rates are higher for service members with dependents.
- Duty Station: Location significantly impacts BAH due to varying housing costs.
The DoD offers a free BAH Rate Lookup tool on the Defense Travel Management Office website (https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/). Enter your duty station’s zip code to find your specific BAH rate.
Cost-Sharing
It’s important to note that BAH rates are set at 95% of the average housing cost for a particular pay grade and dependency status in a specific location. This means service members contribute a portion (5%) towards housing costs.
Resources for Service Members
For more information on BAH, service members can refer to these resources:
- DoD announcement on 2024 BAH rates: https://www.defense.gov/News/News-Stories/Article/Article/3616740/dod-releases-2024-basic-allowance-for-housing-rates/
- Military.com’s guide to BAH: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/
- Defense Travel Management Office’s BAH Rate Lookup tool: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/