How does the DoD determine the BAH rates for different locations?
The DOD’s goal is that as of January 2005, Basic Allowance for Housing (BAH) rates will cover 100% of the average rental costs for the type of dwelling authorized for the specific paygrade (rank).
The Department of Defense (DOD) employs Runzheimer International to collect the nation-wide housing cost data that they use to compute BAH. They don’t stop there. In addition the DOD obtains current data from multiple sources, in an effort to be fair and accurately calculate BAH rates.
Local newspapers are searched for and real estate listings and rental vacancies. Telephone interviews establish the availability and exact location of each unit sampled. The DOD has made every effort to obtain a statistical confidence level of 95% or higher.
Apartment and real estate management companies are also contacted to identify units for rental pricing. It is not uncommon for DOD to consult real estate professionals in a locality to obtain confirmation and additional sources of data. Where available, DOD contacts fort/post/base housing referral offices, to tap local military expertise and gain insights into the local concerns of military.
The DoD and the Services also conduct on-site evaluations at various locations to confirm and ensure reliability and accuracy of the cost data.
The following charts show what BAH rates are based on for each military paygrade:
| BAH With Dependents |
| E-1 through E-4 – The midpoint between the average rental cost of a 2 bedroom apartment and a 2 bedroom townhouse. |
| E-5 – Average rental cost of a 2 bedroom townhouse. |
| E-6 – Average rental cost of a 3 bedroom townhouse. |
| E-7 – Average rental cost for a three-bedroom townhouse plus 36 percent of the cost difference between a townhouse and three-bedroom home. |
| E-8 – Average rental cost for a three-bedroom townhouse plus 75 percent of the cost difference between a townhouse and a three-bedroom home. |
| E-9 – Average rental cost of a three-bedroom home, plus 16 percent of the cost difference between a three-bedroom and four-bedroom home. |
| W-1 – Average rental cost for a three-bedroom townhouse plus 1 percent of the cost difference between a townhouse and a three-bedroom home. |
| W-2 – Average rental cost for a three-bedroom townhouse plus 52 percent of the cost difference between a townhouse and a three-bedroom home. |
| W-3 – Average rental cost for a three-bedroom home. |
| W-4 – Average rental cost for a three-bedroom home plus 22 percent of the cost difference between a three-bedroom home and a four-bedroom home. |
| W-5 – Average rental cost for a three-bedroom home plus 48 percent of the cost difference between a three-bedroom home and a four-bedroom home. |
| O-1E – Average rental cost for a three-bedroom townhouse plus 44 percent of the cost difference between a three-bedroom townhouse and a three bedroom home. |
| O-2E – Average rental cost for a three-bedroom townhouse plus 93 percent of the cost difference between a three-bedroom townhouse and a three bedroom home. |
| O-3E – Average rental cost for a three-bedroom townhouse plus 26 percent of the cost difference between a three-bedroom home and a four-bedroom home. |
| O-1 – Average rental cost for a two-bedroom townhouse plus 11 percent of the cost difference between a two-bedroom townhouse and a three-bedroom townhouse. |
| O-2 – Average rental cost for a two-bedroom townhouse plus 98 percent of the cost difference between a two-bedroom townhouse and a three-bedroom townhouse. |
| O-3 – Average rental cost of a three-bedroom townhouse plus 98 percent of the cost difference between a three-bedroom townhouse and a three-bedroom home. |
| O-4 – Average rental cost of a three-bedroom home plus 58 percent of the cost difference between a three-bedroom home and a four-bedroom home. |
| O-5 through O-7 – Average rental cost of a 4-bedroom home. |
| BAH Without Dependents |
| E-1 through E-4 – Average rental cost of a one-bedroom apartment. |
| E-5 – Average rental cost of a one-bedroom apartment plus 67 percent of the cost difference between a one-bedroom apartment and a two bedroom apartment. |
| E-6 – Average rental cost of a two-bedroom apartment plus 7 percent of the cost difference between a two-bedroom apartment and a two-bedroom townhouse. |
| E-7 – Average rental cost of a two-bedroom apartment plus 53 percent of the cost difference between a two-bedroom apartment and a two-bedroom townhouse. |
| E-8 – Average rental cost of a two-bedroom townhouse plus 20 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse. |
| E-9 – Average rental cost of a two-bedroom townhouse plus 51 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse. |
| W-1 – Average rental cost of a two-bedroom apartment plus 31 percent of the cost difference between a two-bedroom apartment and a two-bedroom townhouse. |
| W-2 – Average rental cost of a two-bedroom townhouse plus 19 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse. |
| W-3 – Average rental cost of a two-bedroom townhouse plus 54 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse |
| W-4 – Average rental cost of a three-bedroom townhouse plus 9 percent of the cost difference between a three-bedroom townhouse and a 3-bedroom home. |
| W-5 – Average rental cost of a three-bedroom townhouse plus 45 percent of the cost difference between a three-bedroom townhouse and a 3-bedroom home. |
| O-1E – Average rental cost of a two-bedroom townhouse. |
| O-2E – Average rental cost of a two-bedroom townhouse plus 44 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse. |
| O-3E – Average rental cost of a three-bedroom townhouse. |
| O-1 – Average rental cost of a two-bedroom apartment. |
| O-2 – Average rental cost of a two-bedroom apartment plus 83 percent of the cost difference between a two-bedroom apartment and a two-bedroom townhouse. |
| O-3 – Average rental cost of a two-bedroom townhouse plus 64 percent of the cost difference between a two-bedroom townhouse and a 3-bedroom townhouse. |
| O-4 – Average rental cost of a three-bedroom townhouse plus 40percent of the cost difference between a three-bedroom townhouse and a 3-bedroom home. |
| O-5-Average rental cost of a three-bedroom townhouse plus 63 percent of the cost difference between a three-bedroom townhouse and a 3-bedroom home. |
| O-6 through O-7 – Average rental cost of a three-bedroom home. |
