The Base Allowance for Housing (BAH) provides military service members funds for housing and related costs for non-government provided quarters. Your BAH rate is determined by your paygrade, location of your duty station, and dependency status.
The US Department of Defense calculates the rates based on a combination of local housing and related costs for each duty zone. BAH rates fluctuate based on previous year’s housing costs, but decreases in BAH rate do not apply as long as your situation stays the same.
Promotion to a New Pay Grade
New Dependent (get married, have a baby, etc.)
PCS to a Different Location
DOD Updates BAH at the Start of Each Year
Yes, military can use Basic Allowance for Housing as income when applying for a VA home loan. Mortgage lenders will factor in your monthly BAH if included on your loan application.
Be aware, if you opt for a home at the top end of your price range, BAH might not always cover your entire mortgage payment.
If you land on the opposite end of the spectrum and purchase a home with a monthly payment under your BAH, then you are free to save or deploy that cash elsewhere.
Check out how your rate compares to your mortgage payments on our unique WeVett Mortgage Calculator With BAH Comparison©