The average Basic Allowance for Housing (BAH) rate will increase 2.9% beginning Jan. 1, according to a DoD press release announcing the new figures.
This means many servicemembers in the approximately 300 housing areas across the nation will see an increase in their monthly benefit. Even if the BAH rate for their region falls, they will not see a decrease in their rate, so long as they maintain uninterrupted eligibility in the same region. The policy is designed to allow servicemembers to maintain lease or mortgage payments.
Rates vary by location, paygrade, and whether servicemembers have dependents. Calculate your 2021 rate using the Defense Travel Management Office’s official BAH calculator.
[RELATED: MOAA's Financial Calculators]
The rates are not designed to cover full housing costs – the FY 2016 National Defense Authorization Act (NDAA) included a phased-in decrease in the benefit that now requires servicemembers to pay 5% of the national projected average housing costs at their paygrade out of pocket.
This amount ranges from $70 a month for E-1 to E-4 servicemembers without dependents to $158 per month for O-7 servicemembers with dependents. Get the full breakdown at this link.