Understanding Your Basic Allowance for Housing (BAH)
The Basic Allowance for Housing (BAH) is a U.S. based military allowance designed to offset the cost of housing when you do not receive government-provided quarters. It is completely tax-free and depends on your location, pay grade, and whether you have dependents.
Our BAH Calculator is designed to help you determine exactly how much house or apartment you can afford off-base without dipping into your base salary. If you have a VA disability rating as well, you can check our VA Disability Calculator to see your combined compensation.
Do I get to keep the extra BAH?
Yes! One of the best benefits of renting off-base is that if your total housing costs (Rent + Utilities + Insurance) are less than your monthly BAH rate, you keep the difference.
For example, if your BAH is $2,000 and you find an apartment where rent and utilities total $1,700, the remaining $300 is yours to save, invest, or spend. You can use our "Out-of-Pocket / Surplus" tab to calculate exactly how much you'll pocket.
What if housing costs more?
The Department of Defense calculates BAH to cover roughly 95% of housing costs in a given area. This means the DoD expects service members to pay around 5% out of pocket on average.
If you choose a home where rent and utilities exceed your BAH, that deficit will simply be deducted from your standard base pay.
To find your official, up-to-date allowance rate, always reference the official DoD BAH site.