BAH (Basic Allowance for Housing), Explained
Updated July 2026
Basic Allowance for Housing (BAH) is a tax-free monthly payment that helps service members pay for housing when they live off base. For many members it is one of the largest parts of their paycheck. Here is how it is calculated and who gets it.
What BAH is
BAH is a tax-free allowance meant to cover housing costs in the civilian market. Because it is untaxed, it is worth more than the same amount of taxable base pay. It is set so that most members' out-of-pocket housing costs are low, based on typical local rents.
What sets your rate: rank, location, and dependents
- Rank (pay grade): higher grades get higher BAH.
- Location: rates are set by the ZIP code of your duty station and reflect local rent — a high-cost city pays far more than a rural base.
- Dependents: there are two rates — "with dependents" and "without dependents." It is a yes/no factor; you do not get more for having more children.
Estimate yours with our BAH calculator.
When you receive BAH (and when you don't)
You generally receive BAH when you live off base. If you live in government/barracks housing or on-base family housing, you usually do not receive BAH (the housing is provided instead). Single junior enlisted in the barracks typically receive no BAH, though a partial rate exists in some cases.
Rate protection
BAH rates are recalculated every year. If local rates drop, "rate protection" generally keeps your BAH from decreasing as long as your status does not change — so a housing-market dip will not cut your allowance.
Guard & Reserve and BAH
Guard and Reserve members receive BAH when they are activated on active-duty orders. On orders of more than 30 days you generally get the same full local BAH as active-duty members. For shorter active periods (30 days or less), a different, typically lower nationwide rate called BAH-RC (Reserve Component, formerly BAH Type II) applies. Drilling for a normal weekend does not pay BAH.
Overseas: OHA instead of BAH
If you are stationed outside the U.S., you receive Overseas Housing Allowance (OHA) rather than BAH. OHA works differently — it reimburses your actual rent up to a cap, plus utility and move-in allowances.
Frequently asked questions
Is BAH taxed?
No. BAH is a tax-free allowance, which makes it worth more than an equal amount of taxable basic pay. It is not reported as taxable income.
Does BAH increase with more children?
No. There are only two BAH rates — "with dependents" and "without dependents." Having a spouse or any children qualifies you for the with-dependents rate, but additional children do not raise it.
Do you get BAH if you live on base?
Usually not. If you live in government barracks or on-base family housing, the housing is provided in place of BAH. You generally receive BAH when you live off base in the civilian market.
What determines how much BAH you get?
Three things: your pay grade, the ZIP code of your duty station (reflecting local rent), and whether you have dependents. The DoD publishes updated rates each year.