BAH Calculator

1. Select your Military Housing Area (MHA) — this is determined by your duty station's zip code. We've included 21 of the largest MHAs covering most major US bases.
2. Select your paygrade. BAH is based on your paygrade as of the rate effective date (typically January 1), not your current grade if you were promoted mid-year.
3. Choose dependent status. "With dependents" includes a legal spouse or qualifying child. The dependent rate is roughly 33% higher than the without-dependent rate.
4. Read your monthly tax-free housing allowance. BAH is paid monthly with your regular paycheck. It is exempt from federal income tax and most state income taxes.

BAH is not a formula — it's a published lookup table. The Department of Defense sets BAH rates each January based on local rental market surveys conducted by a contracted research firm.

BAH = lookup(MHA zip code, paygrade, with/without dependents)

Where MHA rates are set by DoD using:
- Local rental cost survey (anchor + 95th percentile)
- Utility cost (electric, gas, water, sewer, trash)
- Renters insurance baseline

The DoD methodology covers 95% of rental costs for the housing tier matched to each paygrade. Members are expected to pay roughly 5% out of pocket, on average. Senior enlisted (E-7 and above) and officers (O-3+) are matched to larger housing units (3 or 4 bedrooms vs. 1-2 for junior enlisted).

BAH is the second-largest piece of military compensation after basic pay, and it's tax-free. Smart strategy around BAH can add tens of thousands of dollars to your career earnings.

Three important rules: (1) BAH is tax-free, so $2,500/month BAH equals roughly $3,300/month of taxable income for a typical service member. (2) BAH rate protection means if rates drop at your station, you keep the higher rate until you PCS or get promoted. (3) BAH does not count toward your retirement calculation — only base pay does — so don't over-prioritize HCOL bases if it costs you specialty pay or promotion timing.

If you're considering buying a house with your VA loan, calculate your mortgage payment (using our mortgage calculator) and aim for a total housing cost at or under your BAH rate. That preserves the tax-free advantage entirely.