2025 BAH Rates in Rhode Island – Military Housing by ZIP Code
The 2025 Basic Allowance for Housing (BAH) rates in Rhode Island are now live. These monthly, tax-free housing payments help active-duty military members cover off-base living expenses. Whether you’re stationed at Naval Station Newport, serving in Providence, or assigned to a nearby installation in New England, your housing allowance is based on ZIP code, rank, and dependency status.
In 2025, BAH increased in high-cost coastal areas and suburban ZIPs near Boston. For broader comparisons, visit our national BAH update hub, or check the Rhode Island VA loan guide to see how to convert your BAH into a home purchase.
Check how far your BAH goes in Rhode Island
View BAH Rates in:
What Is BAH and How Does It Work in Rhode Island?
The Basic Allowance for Housing (BAH) is a monthly, tax-free payment provided to military members who live off base. In Rhode Island, this includes personnel assigned to Naval Station Newport, as well as reservists and recruiters working in Providence, Warwick, and surrounding towns.
How Are BAH Rates Set in Rhode Island?
- ZIP Code: BAH rates are calculated based on local rental costs — including areas like 02841 (Newport), 02903 (Providence), and 02886 (Warwick).
- Pay Grade: Higher ranks receive more BAH to reflect larger housing needs.
- Dependents: Members with dependents are eligible for a higher BAH amount to support family housing expenses.
How to Read the 2025 BAH Chart
- Locate your base ZIP code or MHA
- Select your military rank (e.g., E-6, O-2)
- Compare monthly rates for with vs. without dependents
How to Use Your BAH to Buy a Home in Rhode Island
Many Rhode Island service members turn their BAH into equity by using a VA loan to purchase a home. With housing demand remaining steady in coastal towns like Portsmouth, Middletown, and Tiverton, BAH may fully cover your mortgage — especially with no down payment required under VA loan rules.
Benefits of VA Loans in Rhode Island:
- $0 down payment for qualified borrowers
- No PMI (Private Mortgage Insurance)
- Flexible credit score minimums and manual underwriting
- Access to competitive VA loan rates
Buying instead of renting with your BAH can be a smart move in Rhode Island’s stable but competitive market.
Rhode Island Housing Costs & BAH Impact
Rhode Island’s coastal communities tend to have higher rental costs than inland ZIPs, especially in areas like Newport, Middletown, and Providence. BAH adjustments in 2025 reflect rising rents along the shoreline and surrounding areas impacted by New England’s broader housing market. For most enlisted service members, BAH covers rent in suburban ZIPs — but in downtown Newport or Providence, additional out-of-pocket expenses may apply.
View Rhode Island BAH Rate FAQs
Newport, RI BAH Rates
| Grade | With Dependents | Without Dependents |
|---|---|---|
| E01 | $2,586 | $1,980 |
| E02 | $2,586 | $1,980 |
| E03 | $2,586 | $1,980 |
| E04 | $2,586 | $1,980 |
| E05 | $2,790 | $2,238 |
| E06 | $3,408 | $2,556 |
| E07 | $3,597 | $2,697 |
| E08 | $3,795 | $2,916 |
| E09 | $4,014 | $3,099 |
| W01 | $3,432 | $2,574 |
| W02 | $3,678 | $2,913 |
| W03 | $3,924 | $3,120 |
| W04 | $4,050 | $3,450 |
| W05 | $4,203 | $3,642 |
| O01E | $3,630 | $2,787 |
| O02E | $3,891 | $3,057 |
| O03E | $4,071 | $3,402 |
| O01 | $2,868 | $2,379 |
| O02 | $3,402 | $2,727 |
| O03 | $3,915 | $3,183 |
| O04 | $4,251 | $3,606 |
| O05 | $4,485 | $3,720 |
| O06 | $4,527 | $3,906 |
| O07 | $4,563 | $3,978 |
BAH for Newport, RI includes the following zip codes: 02840, 02841, 02842.
Providence, RI BAH Rates
| Grade | With Dependents | Without Dependents |
|---|---|---|
| E01 | $2,784 | $2,088 |
| E02 | $2,784 | $2,088 |
| E03 | $2,784 | $2,088 |
| E04 | $2,784 | $2,088 |
| E05 | $2,931 | $2,442 |
| E06 | $3,144 | $2,646 |
| E07 | $3,309 | $2,787 |
| E08 | $3,486 | $2,979 |
| E09 | $3,720 | $3,030 |
| W01 | $3,162 | $2,745 |
| W02 | $3,381 | $2,976 |
| W03 | $3,603 | $3,042 |
| W04 | $3,768 | $3,174 |
| W05 | $3,963 | $3,348 |
| O01E | $3,339 | $2,928 |
| O02E | $3,573 | $3,018 |
| O03E | $3,795 | $3,132 |
| O01 | $2,964 | $2,634 |
| O02 | $3,141 | $2,886 |
| O03 | $3,597 | $3,063 |
| O04 | $4,032 | $3,315 |
| O05 | $4,335 | $3,417 |
| O06 | $4,374 | $3,585 |
| O07 | $4,410 | $3,651 |
BAH for Providence, RI includes the following zip codes: 02901, 02902, 02903, 02904, 02905, 02906, 02907, 02908, 02909, 02910, 02911, 02912, 02918, 02919, 02940.
2025 BAH FAQs for Rhode Island
How much did BAH increase in Rhode Island for 2025?
Statewide, BAH rose by approximately 4.7%, with the most significant increases in ZIPs around Newport and Providence.
Where is BAH highest in Rhode Island?
ZIP code 02841 (Naval Station Newport) and areas near downtown Providence offer the highest BAH due to elevated rent costs.
What is the BAH for an E-5 with dependents at Naval Station Newport?
In 2025, an E-5 with dependents at NAVSTA Newport receives approximately $2,763/month.
Does BAH fully cover rent in Rhode Island?
In most cases, yes. BAH typically covers rent in suburban and inland ZIPs, though coastal neighborhoods may exceed the allowance.
Is BAH taxed in Rhode Island?
No. BAH is completely tax-free and not included in federal or state income reporting.
Can I use BAH to qualify for a mortgage?
Yes. Lenders treat BAH as stable income when determining VA home loan eligibility.
What ZIP applies to Naval Station Newport?
ZIP 02841 is used for BAH purposes at NAVSTA Newport and reflects Newport’s local rental market.
When are BAH rates updated?
The Department of Defense updates BAH every January based on rental trends across each ZIP code.
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