(This article by Jen Goodale and Cory Titus originally appeared in the November 2025 issue of Military Officer, a magazine available to all MOAA Premium and Life members who can log in to access our digital version and archive. Basic members can save on a membership upgrade and access the magazine.)

Finding affordable and suitable housing has long been one of the greatest stressors for military families, especially those stationed in high-cost areas or where on-base housing is limited. For too many families, the challenge of finding affordable housing comes at the cost of excessive commutes and sacrifices, including that of better school districts.

The basic allowance for housing (BAH) is designed to  help servicemembers and their families pay for housing costs in the civilian market when government-provided quarters are unavailable. It is calculated by rank, dependency status, and location, with the goal of covering a portion of rent and utilities in the surrounding community.

Historically, BAH was intended to cover 100% of median housing costs, but that standard has eroded. In 2015, Congress approved reductions that left servicemembers paying out of pocket for a percentage of their housing costs — up to 5%. That cost share, while seemingly small, quickly adds up for families in expensive or competitive rental markets.

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The most recent reconciliation package, signed into law in July 2025, included $2.9 billion for BAH, signaling recognition by lawmakers that the current system is not meeting the needs of today’s force.

However, it is still unclear how the Pentagon will apply these funds. Will the department restore BAH to fully cover housing expenses, or provide only partial relief? Until it issues guidance, uncertainty will persist for families trying to budget for rent, utilities, and other necessities.

Transparency and Reform

Lawmakers are also pressing for clearer accountability in how BAH is calculated. The Senate version of the FY 2026 National Defense Authorization Act includes a provision requiring the Pentagon to produce accessible, understandable documentation outlining the methodology behind BAH determinations. This effort aims to help servicemembers better understand why their allowance might fall short of actual housing costs.

The 14th Quadrennial Review of Military Compensation offered additional recommendations for reform:

• Reduce BAH rate volatility by expanded application of the existing BAH regression smoothing model. This model addresses data sample anomalies by dampening the effects of outlier data. As a result, it produces BAH rates that are more reliable, more accurate, and less volatile over time.
  
  
• Implement an additional quality control solution by using available census data for military housing areas, where the current methodology might result in data anomalies. This step establishes a floor rate beneath which BAH estimates will not fall.
  
  
• Switch the housing profile method to a more flexible “number of bedrooms” approach, and update the BAH interpolation table to accommodate this profile. BAH profiles based on “number of bedrooms” adds flexibility to more accurately estimate housing costs in remote or challenging markets with unique housing distributions.

MOAA continues to advocate for the full restoration of BAH to cover 100% of median housing costs. Military families should not have to bear hidden, out-of-pocket expenses simply to secure a roof over their heads while serving their country.

As policymakers weigh reforms, MOAA will remain a strong voice to ensure housing allowances truly reflect the needs of servicemembers and their families.

Jen Goodale is MOAA’s director of Government Relations for veteran and retired affairs. Cory Titus is a former director of Government Relations for currently serving affairs.