2025 BAH Rates in Vermont – Military Housing by ZIP Code
Vermont’s 2025 Basic Allowance for Housing (BAH) rates are now active. These monthly, tax-free payments help active-duty military members cover the cost of off-base housing. Whether you serve in the Vermont National Guard, are stationed with the Coast Guard in Burlington, or are assigned to a nearby New England installation, your BAH rate is based on ZIP code, pay grade, and dependent status.
BAH increases in 2025 reflect modest rental growth in areas like South Burlington and Barre. To explore broader trends, view our BAH rate tracker or check out your local options in the Vermont VA loan guide.
What Is BAH and How Does It Work in Vermont?
The Basic Allowance for Housing (BAH) is a tax-free monthly payment to military members living off base. In Vermont, this includes those serving in the Vermont National Guard, Coast Guard units in Burlington, and recruiters working in areas like Rutland and Montpelier.
How Vermont BAH Rates Are Determined
- ZIP Code: BAH is based on rental costs in ZIPs like 05403 (South Burlington), 05602 (Montpelier), and 05701 (Rutland).
- Pay Grade: Higher-ranking service members receive higher housing allowances.
- Dependents: BAH is higher for those with dependents to account for family housing needs.
Using the 2025 BAH Chart
- Find your duty ZIP code or nearest installation
- Select your rank/pay grade
- Compare rates for “with” vs. “without” dependents
In this Article
How to Use Your BAH to Buy a Home in Vermont
Military members in Vermont can use their BAH to purchase a home with a VA loan. With stable prices in towns like Barre, Essex, and Middlebury, your BAH may be enough to fully cover your mortgage — and VA loans require no down payment.
VA Loan Advantages in Vermont:
- No down payment required in most cases
- No PMI or mortgage insurance fees
- Manual underwriting available for lower credit scores
- Competitive interest rates on VA-backed mortgages
In a quiet, stable housing market like Vermont’s, using BAH for homeownership may be a smart long-term option for military families.
Vermont Housing Costs & BAH Impact
Vermont has one of the smaller military footprints in the U.S., but housing near Burlington, Barre, and Montpelier still sees regional rental pressure. In 2025, BAH increases were modest, primarily driven by rent inflation in ZIPs near the University of Vermont and growing suburbs. For most service members in rural Vermont, BAH fully covers rent and basic utilities.
BAH Rate Charts for Vermont in 2025
| Grade | With Dependents | Without Dependents |
|---|---|---|
| E01 | $2,715 | $2,073 |
| E02 | $2,715 | $2,073 |
| E03 | $2,715 | $2,073 |
| E04 | $2,715 | $2,073 |
| E05 | $2,967 | $2,322 |
| E06 | $3,606 | $2,706 |
| E07 | $3,771 | $2,829 |
| E08 | $3,945 | $3,099 |
| E09 | $4,164 | $3,288 |
| W01 | $3,630 | $2,724 |
| W02 | $3,843 | $3,096 |
| W03 | $4,059 | $3,309 |
| W04 | $4,206 | $3,642 |
| W05 | $4,380 | $3,810 |
| O01E | $3,801 | $2,964 |
| O02E | $4,029 | $3,246 |
| O03E | $4,230 | $3,600 |
| O01 | $3,048 | $2,460 |
| O02 | $3,600 | $2,886 |
| O03 | $4,053 | $3,375 |
| O04 | $4,440 | $3,780 |
| O05 | $4,713 | $3,876 |
| O06 | $4,755 | $4,041 |
| O07 | $4,794 | $4,116 |
Zip codes for Burlington, VT: 05401, 05402, 05403, 05404, 05405, 05406, 05407, 05408, 05445, 05446, 05449, 05452, 05453, 05454, 05455, 05456, 05457, 05458, 05459, 05461, 05462, 05463, 05464, 05465, 05466, 05468, 05469, 05470, 05471, 05472, 05473, 05474, 05476, 05477, 05478, 05479, 05481, 05482, 05483, 05485, 05486, 05487, 05488, 05489, 05490, 05491, 05492, 05494, 05495.
2025 BAH FAQs for Vermont
How much did BAH increase in Vermont for 2025?
BAH increased by about 3.2% statewide in 2025, with the biggest adjustments around South Burlington and Montpelier ZIPs.
Where is BAH highest in Vermont?
ZIP 05403 (South Burlington) typically offers the highest BAH due to its proximity to Burlington and regional rental demand.
What is the BAH for an E-5 with dependents in South Burlington?
An E-5 with dependents in ZIP 05403 receives approximately $2,268/month in 2025.
Can BAH fully cover rent in Vermont?
Yes. In most rural and suburban ZIPs, BAH fully covers rent and utilities. In college towns or near Burlington, prices may vary slightly.
Is BAH taxable in Vermont?
No. BAH is tax-exempt and is not included in state or federal income reporting.
Can I use BAH to qualify for a VA mortgage?
Yes. VA-approved lenders accept BAH as monthly income when evaluating home loan eligibility.
What ZIP code applies to Coast Guard Burlington?
ZIP 05401 (Burlington) is typically used for housing allowances connected to Coast Guard and support units in that region.
When do BAH rates update?
BAH rates are revised annually and take effect every January based on current rental market data.
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