DOD announces 5.4% increase in Basic Allowance for Housing for 2025

The Department of Defense has announced a 5.4% increase in Basic Allowance for Housing (BAH) rates for 2025, effective January 1. This change will provide about $29.2 billion to nearly one million service members, reflecting rental market trends. In 2024, BAH rates ranged from $85 to $194 per month, depending on rank and dependency status. For 2025, rates will increase to between $90 and $202 monthly, based on the same factors. The DOD calculates BAH using data from 299 military housing areas, considering local rental costs and utility expenses. The program includes protections to ensure service members do not see rate decreases if they remain eligible in their locations.