The 2025 Basic Allowance for Housing (BAH) rates reflect a national average increase of 5.4% compared to 2024.
These adjustments are based on the Department of Defense’s analysis of local rental and utility costs for various housing types.
Changes in these local factors directly influence the BAH rates for specific locations, ensuring that housing allowances accurately reflect the cost of living.
2025 BAH Rates
2025 BAH Rate Increase Chart
Here are the 25 largest increases in 2025, based on the BAH rate for an E-5 with dependents.
| Location | Increased 2025 BAH Rate | Previous 2024 BAH Rate | Percent Change |
|---|---|---|---|
| Hawaii County, Hi | $3,453.00 | $2,868.00 | 20% |
| College Station, Tx | $1,716.00 | $1,434.00 | 20% |
| Traverse City, Mi | $1,884.00 | $1,590.00 | 18% |
| Nantucket, Ma | $4,185.00 | $3,555.00 | 18% |
| Fargo, Nd | $1,509.00 | $1,287.00 | 17% |
| Birmingham, Al | $2,106.00 | $1,815.00 | 16% |
| White Sands Mr/Las Cruces, Nm | $1,752.00 | $1,515.00 | 16% |
| Duluth, Mn | $1,974.00 | $1,707.00 | 16% |
| Charleston, Wv | $1,311.00 | $1,134.00 | 16% |
| Maui County, Hi | $4,287.00 | $3,714.00 | 15% |
| Syracuse, Ny | $2,004.00 | $1,737.00 | 15% |
| Cape Cod-Plymouth, Ma | $3,672.00 | $3,186.00 | 15% |
| Sitka, Ak | $2,949.00 | $2,559.00 | 15% |
| New York City, Ny | $5,073.00 | $4,407.00 | 15% |
| Montgomery, Al | $1,626.00 | $1,416.00 | 15% |
| Fort Leonard Wood, Mo | $1,311.00 | $1,146.00 | 14% |
| Ketchikan, Ak | $2,649.00 | $2,316.00 | 14% |
| Ocala, Fl | $2,265.00 | $1,983.00 | 14% |
| Martha’s Vineyard, Ma | $3,987.00 | $3,492.00 | 14% |
| Terre Haute, In | $1,377.00 | $1,209.00 | 14% |
| West Point, Ny | $3,111.00 | $2,736.00 | 14% |
| Newport, Ri | $2,790.00 | $2,454.00 | 14% |
| Perth Amboy, Nj | $3,240.00 | $2,856.00 | 13% |
| New Haven/Fairfield, Ct | $3,048.00 | $2,694.00 | 13% |
| Rock Island, Il | $1,650.00 | $1,461.00 | 13% |
Why Do BAH Rates Vary by Location?
Since 2008, BAH rates have been closely tied to rental housing costs in local markets. The rates are determined annually based on the previous year’s average housing costs in each area.
However, if your area’s rates decrease, individual rate protection ensures that your BAH will not go down as long as your personal circumstances remain the same. For service members, this means:
- If your local BAH rate increases on January 1, you’ll receive the increase.
- If it decreases, your rate typically stays the same unless your situation changes.
Scenarios Where BAH Rates Can Decrease
There are only three situations where your BAH rate could drop:
- Permanent Change of Station (PCS):
When you move to a new duty station, your BAH rate will adjust to the current rate for that location as of your report date. - Demotion:
If you’re demoted, your BAH will change to reflect the rate for your lower pay grade. However, if you’re promoted, your BAH will not decrease, even if the higher pay grade has a lower rate. In such cases, you’ll retain the higher rate. - Dependency Status Changes:
If your dependency status changes—such as shifting from “with dependents” to “without dependents” or vice versa—your BAH will adjust to the rate in effect for your new status on the date of the change.
Staying Informed About BAH Rates and Military Benefits
It’s crucial to stay updated on military pay and benefits to maximize what you’ve earned. By keeping track of changes to BAH and other allowances, you can better plan for your housing needs and financial goals. Regular updates from reliable sources ensure you’re always informed about the latest benefits available to you.
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