The Department of Defense recently announced the 2025 Basic Housing Allowance (BAH) rates. Some military service members feel a sense of relief, while others sense they might've grabbed the slightly shorter end of the stick. Regardless of which military housing area you’re stationed in, the BAH budget, as a whole, is increasing slightly.
How BAH Is Changing from 2024 to 2025
Following the BAH increases in 2022 and 2023, the 2025 BAH rates are increasing by 5.4% on average. This growth totals approximately $29.2 billion across the military branches. It's about 1.3 billion more than last year’s increase.
Communities online are quick to share how much their BAH went up, but others point out that some locations noticed a dip in the BAH. A 5.4% increase on average means that 96% of military housing areas will rise while 4% will observe a decrease.
To find your current BAH rate, see our BAH calculator.
How BAH Is Calculated
The government determines BAH (Basic Allowance for Housing) based on the average cost of living in 299 Military Housing Areas (MHAs). They pay close attention to factors like home size, home type (e.g., apartments vs. single-family homes), military rank, and family size.
Given these variables, they calculate a rate designed to cover 95% of your housing costs, not 100%. Unfortunately, that remaining 5% feels more substantial with increasing costs of nearly everything.
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BAH Frequently Asked Questions
1. What do I do if my BAH rate is decreasing in 2025?
If you’re in a region where your 2025 BAH rate is lower than 2024, you're grandfathered into the previous year’s rate.
2. When do the new 2025 BAH rates take effect?
The 2025 BAH rates will take effect on January 1, 2025.
3. Is BAH based on rentals or homes for sale prices?
BAH is determined using rental housing cost data and does not factor in the home purchase market.
4. Am I eligible for CONUS COLA?
While CONUS COLA can help offset high-cost-of-living areas, few military installations within the continental U.S. qualify. To learn more and see if you’re eligible, see the next section.
Outlook on CONUS COLA
For high-cost-of-living areas, there are a handful of locations across the continental U.S. where service members may receive a Cost-of-Living Allowance (COLA).
“An area is considered high cost if the non-housing cost of living for that area exceeds a threshold of 107%. Therefore, only members assigned to duty stations where the non-housing cost of living is at least eight percent above the national average are eligible for CONUS COLA.” -Defense Travel Management Office
These locations typically include specific duty stations in California, Colorado, New York, Oregon, and Virginia. The rates usually range from $38 to $61/month for members with dependents.
Use the DoD’s CONUS COLA Rate Lookup for details on your location.
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Other Military Allowances That Are Changing in 2025
While BAH and CONUS COLA are the most substantial military stipends, there are a handful of additional allowances that make a difference.
Basic Allowance for Subsistence
The 2025 Basic Allowance for Subsistence is increasing from 2024:
- Enlisted: $465.77 per month (a $5.52 increase from 2024)
- Officer: $320.78 per month (a $3.8 increase from 2024)
BAS is given to offset the cost of meals for service members. Unlike BAH, this allowance does not account for family members.
Cost of Living Adjustments
Cost of Living Adjustments (COLA) are given to help keep living expenses proportionate to income. Beneficiaries will observe a 2.5% increase from 2024.
COLA Beneficiaries:
- Retired Military Veterans
- Disabled Veterans
- Veterans’ Pension Benefits
- Survivor Benefit Annuitants
- Surviving Families of Veterans
- Social Security Recipients
- Federal Civilian Retirees
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- Eligibility for Medicare Extra Help and Medicaid
- Federal & State Food and Housing Assistance Programs
With these budget changes in mind, you can start the new year with an appropriate budget destined for success. For more information on BAH budgets, check out Tips for Living Within Your BAH.
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