Military Housing Allowances to Rise by Over 5% in 2025, Defense Officials Announce

The 5.4% average increase observed in 2024 will be replicated in the 2025 BAH rates, as announced by defense officials on Friday. Nevertheless, the actual increases will differ depending on the dependent status, location, and classification.

For instance, an E-5 with dependents stationed in Copperas Cove near Fort Cavazos, Texas, will experience a 12.8% increase in salary, which translates to an additional $180 per month. Conversely, an E-5 without dependents in the same region will incur a 9.8% increase, which equates to an extra $129 per month.

The 2024 rates will continue to be received by troops in areas that are subject to BAH decreases, and they will not be penalized. The updated BAH rates will be used to match the rent of individuals residing in privatized military housing, which will be advantageous for landlords.

In 2025, the Defense Department will allocate $29.2 billion for BAH. In 2023, the average BAH increased by 12.1%, the most significant increase in 15 years, in response to the increasing cost of housing.

BAH rates are annually established by analyzing rental cost data from 299 military housing areas in the United States, which includes Alaska and Hawaii. The calculations take into account median rents, utility costs, and input from various agencies, such as the Bureau of Labor Statistics and the Census Bureau.

Defense officials are currently evaluating the methods of calculating BAH in response to a report from the Government Accountability Office that recommends improved methods. The Defense Department's BAH utility enables troops to access 2025 rates.

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