The 2021 Basic Allowance for Housing (BAH) rates are budgeted by each department to increase on average 2.9 percent to 3.7 percent. The budgeted increase is an average for all areas and actual rates will continue to be set by the individual location based on the current local rental housing market survey process.
The 2021 BAH increase will be effective on January 1, 2021, and service members will see the increase in their pay on January 15th, 2021. Actual BAH increases vary by location.
BAH covers 95% of housing expenses while service members pay the remaining 5% out of pocket.
Not all locations will see BAH increases, as the housing allowance is based on the duty station zip code. For veterans using Post-9/11 GI Bill® benefits, the BAH is based in the zip code of the school and corresponds with the cost of living for that zip code. Cities with higher costs of living such as Honolulu, Chicago, and Los Angeles have very high BAH rates to offset those costs. Small or rural cities such as Tacoma or Colorado Springs have a lower cost of living and are assigned a lower allowance. New BAH rates will affect all military members, including veterans using the GI Bill®. Note that “rate protection” ensures members currently living in locations set to receive a decrease will continue to receive the old BAH rate. New, lower BAH rates will be applied to troops moving into a new area and to those who change dependency status or rank.
Requested BAH Rate Increase by Branch
Army BAH: 2.9%
Source: Army Fiscal Year 2021 Budget
Air Force BAH: 3.3%
Source: Air Force Fiscal Year 2021 Budget
Navy/Marine Corps BAH: 3.7%
Source: Navy/Marine Corps Fiscal Year 2021 Budget
Basic Allowance for Housing rates are budgeted based housing and revised housing survey data.
2020 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 |
| 2021 | 2.90% – 3.70% | TBD |
| 2020 | 2.90% | 2.8% |
| 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
FY 2020
No changes to BAH are currently planned.
FY 2019
95% of service members’ housing costs are covered.
FY 2018
96% of service members’ housing costs are covered.
FY 2017
97% of service members’ housing costs are covered.
FY 2016
The FY 2016 NDAA authorized growth slow-down of BAH by 1% per year until 5% out-of-pocket is reached. Phased in 1% increments per year over 4 years. 98% of service members’ housing costs are covered. Actual implementation of 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 2015
Authorized the monthly Basic Allowance for Housing (BAH) rates to be set at 99% (vs. 100%) of the median rental housing costs. 99% of housing costs are covered.
By 2005
Housing allowance rates were increased enough so that median out-of-pocket “off-base” housing cost was completely eliminated for members by pay grade, location, and dependency status. The Military Services 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 allowed.
Late 1990s
Defense Department increases housing allowance rates to bring them in line with actual rental market housing costs across the country and to reduce out-of-pocket housing costs for military members. Prior to this initiative, allowances covered only about 80% of housing costs, leaving an out-of-pocket expense of up to 20%.