2025 Military Housing Allowance (BAH) Rate Updates

Welcome to your go-to 2025 BAH Update Hub. Whether stationed stateside or overseas, preparing for a PCS, or planning a home purchase with your VA loan, this page informs you on Basic Allowance for Housing (BAH).

What Is BAH?

BAH is a monthly, tax-free stipend offered to active-duty military personnel to offset housing costs when living off base. It adjusts annually to reflect the real-time rental market and utility costs around military installations.

2025 BAH Overview

Average National Increase: +5.4%

Top Gaining Markets:

• San Diego, CA
• Fort Liberty, NC
• Joint Base Lewis-McChord, WA
• Honolulu, HI
• Norfolk, VA

Rate Protection: Locked-in rates for those who stay at the same duty station

Use the Official BAH Calculator

Key Facts About BAH

• Based on the duty station ZIP code, not where you live
• Components: Median rent + utilities (water, sewer, electricity, trash)
• Eligibility: Active-duty, off-base, Title 10 orders over 30 days
• Dual-Military Households: Each member gets BAH, but only one at the with-dependents rate

BAH as a Homeownership Tool

You can use your BAH toward:

• Monthly rent
• VA home loan mortgage payments
• Shared housing expenses

VA Loan Benefits Include:

• $0 down payment
• No private mortgage insurance (PMI)
• Competitive interest rates

Pro Tip: Use your excess BAH (if rent/mortgage is lower) to cover maintenance, save for upgrades, or pay down your loan faster.

Renting vs. Buying in 2025

Helpful Tools

• Be My Neighbor Mortgage offers free consultations to determine how best to use your BAH, especially if you’re considering buying. Learn More
  NMLS #1743790 | Equal Housing Lender
• reAlpha helps military families find homes commission-free—a serious edge in today’s market. Explore Homes

FAQs

What if my BAH decreased in 2025?

If you haven’t moved or changed ranks, you’re protected under BAH Rate Protection.

Can I use BAH to buy a home?

Yes, your BAH is counted as qualifying income for VA loans.

Does BAH cover utilities and HOA fees?

BAH includes an estimate of utilities but not HOA fees or mortgage interest.

Can dual-military couples both receive BAH?

Yes, but only one can receive the higher with-dependent rate.

Am I eligible for BAH?

If you're on active duty for 30+ days, living off base, and not in government housing, you likely qualify.

Final Notes

Your 2025 BAH is more than just a monthly allowance—it’s a stepping stone toward financial stability and smarter homeownership. For veteran-friendly mortgage guidance, speak with Be My Neighbor Mortgage. If you're ready to search for a home, reAlpha helps you skip commission fees and shop confidently.

Disclosures:

• Be My Neighbor Mortgage, LLC | NMLS #1743790 | Equal Housing Lender
• BAH rates are determined by the DoD and can change yearly.
• Housing advice is educational and not financial or legal counsel.
• reAlpha is not a lender or broker and does not offer credit decisions.
• Confirm BAH eligibility and VA loan status via VA.gov or your branch housing office.