The 2020 Basic Allowance for Housing (BAH) rates are currently budgeted to be 3.4% to 3.9%. This is based on the varying estimates from each branch of service’s FY 2020 budget estimates. The average BAH increases are budgetary planning factors and actual rates will continue to be set by the individual location based on the current local rental housing market survey process. Congress and the president still must approve and pass the BAH increase into law.
Budgeted 2020 BAH rates by Branch
| Branch | Estimated BAH Increase | Source |
| Air Force |
3.4% | Air Force FY 2020 Budget |
| Army | 3.2% | Army FY 2020 Budget |
| Marine Corps | 3.9% | Marine Corps FY 2020 Budget |
| Navy | 3.9% | Navy FY 2020 Budget |
The 2020 BAH increase will be effective on January 1, 2020, and service members will see the increase in their pay on January 15th, 2020. Actual BAH increases vary by location.
Use our BAH Calculator to see your 2019 rates.
The 2019 BAH rates tables can be found here. Find out how the Forever GI Bill BAH implementation delays might impact you.
BAH covers 95% of housing expenses with service paying 5% of their housing expenses out of pocket.
Not all locations will see an increase, as BAH is based on the duty station zip code, or school zip code in the case of veterans using the Post-9/11 GI Bill®, and thus corresponds with the cost of living of that zip code. For instance, cities with a very high cost of living such as Honolulu, Chicago, and Los Angeles have a very high BAH rate to help off-set those costs. Smaller cities such as Tacoma or Colorado Springs have a lower cost of living and therefore a lower BAH. The new BAH rates will affect all members, including veterans using the GI Bill®. However, “rate protection” ensures that members currently living in a location where the rate is set to decrease will continue to receive the old rate – the new, lower BAH rates will be applied when troops move into a new area or change dependency status or rank.
2019 BAH Calculator
* Enter Duty zip code and not residence zip code. BAH rates are based on duty zip code.
** Click here for the OHA calculator (Overseas Housing Allowance calculator)
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FY2012 – FY2019 Basic Allowance for Housing (BAH) Comparison
| Year | Proposed Increase/Decrease | Actual Increase |
| 2020 | 2.90% | TBD |
| 2019 | 2.90% | 2.55% |
| 2018 | 2.90% | 0.7% |
| 2017 | 2.90% | 2.4% |
| 2016 | 1.30% | 3.4% |
| 2015 | -5.00% | 0.5% |
| 2014 | 4.20% | 5.00% |
| 2013 | 4.20% | 3.80% |
| 2012 | 4.20% | 2.0% |
BAH Changes Timeline
Late 1990s
Defense Department began increasing housing allowance rates to bring them in line with actual rental market housing costs across the country and to reduce members’ out-of-pocket housing costs. Prior to this initiative, a military member’s housing allowance covered only about 80 percent of their full housing costs, leaving an out-of-pocket cost of up to 20 percent.
By 2005
Housing allowance rates were increased enough so that the median out-of-pocket “off-base” housing cost was completely eliminated for members by pay grade, location, and dependency status. The Military Services also entered into numerous public-private ventures (PPVs) designed to eliminate inadequate government housing by leveraging private sector financing, expertise, and innovation to provide necessary housing faster and more efficiently than traditional Military Construction processes would allow.
FY 2015
Authorized the monthly Basic Allowance for Housing (BAH) rates to be set at 99 percent (vs. 100 percent) of the median rental housing costs. 99 percent of service members’ housing costs are covered.
FY 2016
The FY 2016 NDAA provided the authority to slow the rate of growth in BAH by 1 percent per year until 5 percent out-of-pocket is reached. Phased in 1.0 percent increments per year over 4 years. 98 percent of service members’ housing costs are covered. The actual implementation of the out-of-pocket adjustment is computed based on a percentage of the national median cost, so that the actual out-of-pocket dollar amount will be the same by grade and dependency status in every military housing area.
FY 2017
97 percent of service members’ housing costs are covered.
FY 2018
96 percent of service members’ housing costs are covered.
FY 2019
95 percent of service members’ housing costs are set to be covered, the full 5 percent out-of-pocket rate adjustment begins on January 1, 2019.
FY 2020
No changes to BAH are currently planned.