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DoD Releases 2025 Basic Allowance for Housing Rates

DECEMBER 13, 2024 – The Department of Defense has released the 2025 Basic Allowance for Housing rates. Basic Allowance for Housing rates will increase an average of 5.4 percent when the new rates take effect on January 1, 2025. An estimated $29.2 billion will be paid to approximately one million Service members. While average BAH rates increased, different rental markets experienced different market trends, and the 2025 BAH rates reflect those geographic market condition differences.

The Department collects rental housing cost data annually for 299 military housing areas in the United States, including Alaska and Hawaii. The Basic Allowance for Housing rate-setting process relies on a wide variety of data sources (e.g., U.S. Census Bureau survey data, Bureau of Labor Statistics Consumer Price Index, commercial subscription rental cost databases, industry-leading online rental listing websites, and input from the Services and local military installation housing offices, among other sources) to obtain high-quality, accurate, current-year housing cost data.

Median market rents and average utilities (including electricity, heat, and water/sewer) comprise the total housing cost for each military housing area and are included in the Basic Allowance for Housing computation. Total housing costs are determined for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. Basic Allowance for Housing rates are then calculated for each pay grade, both with and without dependents, based on the housing choices of civilians with comparable incomes to each Service member pay grade grouping.

The 2025 Basic Allowance for Housing rates, as part of a robust military compensation package, continue the member cost-sharing element at five percent of the national average housing cost by pay grade. These amounts vary by grade and dependency status and range from $90 to $202 monthly for the 2025 rates. Even with this cost-sharing element, the overall military pay and benefits package remains competitive and healthy.

An integral part of the Basic Allowance for Housing program is the provision of individual rate protection to all members. No matter what happens to measured housing costs — including the out-of-pocket expense adjustment — an individual member who maintains uninterrupted Basic Allowance for Housing eligibility in a given location will not see his/her Basic Allowance for Housing rate decrease. This ensures that members who have made long-term commitments in the form of a lease or contract are not penalized if the area’s housing costs decrease.

The Department is committed to the preservation of a compensation and benefit structure that provides members with an adequate standard of living to sustain a trained, experienced, and ready force now and in the future.

For more information on the Basic Allowance for Housing, including the 2025 Basic Allowance for Housing rates and 2025 Basic Allowance for Housing rate component breakdown, visit https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/.

Service members can calculate their BAH payment by using the Basic Allowance for Housing calculator at: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/.

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Raven Focus Increases Warfighting for Total Army

JULY 28, 2025 — “We are here in support of Raven Focus which is a brigade annual training exercise for the 81st Stryker Brigade, based in Seattle, Washington,” said Lt. Col. Nathan Davis, commander, 1-357th Brigade Support Battalion, Joint Base Lewis-McChord. “For the National Guard and the Army Reserve, their biggest challenge is access to […]

Air National Guard Unveils New Bonus Program

MARCH 11, 2023 – On March 1st, the Air National Guard (ANG) launched a new bonus program to attract and retain personnel in critical specialties. The initiative offers significant financial rewards, with bonuses of up to $90,000 for eligible members, depending on their Air Force Specialty Codes (AFSCs). This strategic move aims to strengthen the […]

Education Benefits Make Stronger Service Members

APRIL 3, 2025 – Within the armed forces, a variety of educational benefits are available that allow service members to both improve themselves and make themselves more valuable to their service branch. One example is the Military Tuition Assistance Program. The program is available to enlisted personnel, officers and warrant officers in the Army, Navy, […]

Former Soldier Navigates Job Hunt

NOVEMBER 19, 2024 — In early 2017, Michael Quinn endured what he called the worst day in the worst year of his life. Quinn, then a sergeant major and 24-year Army Soldier, had weathered deployments in Iraq, Afghanistan and the Philippines. As an Army counter-intelligence agent, he said he learned to operate under grave circumstances […]

Financial Planning for Military Families

JUNE 25, 2025 – Have you ever wondered how military families manage their finances while dealing with deployments, relocations, and changing pay structures? Financial planning is a vital part of life for families who serve. With unique benefits, challenges, and lifestyle changes, military families must make smart financial decisions that protect their future and help […]

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