Basic Allowance for Housing (BAH) rates increased an average of 0.7
percent when the new rates took effect on January 1, 2018.  An
estimated $21 billion will be paid to approximately one million Service
members.  

Continuing to balance the growth in compensation costs, the 2018
Basic Allowance for Housing program expands the member cost-
sharing element (out-of-pocket expense).  Based on the authority
provided in the FY 2016 National Defense Authorization Act, the cost-
sharing element has increased to four percent for 2018 which means a
typical member will absorb four percent of the national average housing
cost by pay grade.  Even with the increase in cost sharing, on average,
BAH rates will increase approximately $10 per month.  A typical mid-
grade enlisted member with dependents, for example, will find his/her
BAH about $19 per month higher than last year, while a typical junior
officer without dependents will find his/her BAH about $16 higher than
last year.

Housing cost data are collected annually for over 300 Military Housing
Areas in the United States, including Alaska and Hawaii.  An important
part of the Basic Allowance for Housing process is the cooperation from
the Services and local military housing offices in the data collection
effort.  Input from local commands is used to determine in what
neighborhoods data is collected and to direct the data collection effort
towards adequate apartment complexes and individual housing units.

Median current market rent and average utilities (including electricity,
heat, and water/sewer) comprise the total housing cost for each military
housing area and are included in the Basic Allowance for Housing
computation. Total housing costs are developed for six housing profiles
(based on dwelling type and number of bedrooms) in each military
housing area. Basic Allowance for Housing rates are then calculated
for each pay grade, both with and without dependents.

An integral part of the Basic Allowance for Housing program is the
provision of individual rate protection to all members.  No matter what
happens to measured housing costs – including the out-of-pocket cost-
sharing adjustment, an individual member who maintains uninterrupted
Basic Allowance for Housing eligibility in a given location will not see
his/her Basic Allowance for Housing rate decrease.  This ensures that
members who have made long-term commitments in the form of a lease
or contract are not penalized if the area’s housing costs decrease.

The Department is committed to the preservation of a compensation
and benefit structure that provides members with a suitable and secure
standard of living to sustain a trained, experienced, and ready force now
and in the future..

See 2018 BAH Rates by LocationNew 2018 Military Pay Charts ->