Troops to See Over 5% Boost in Housing Allowance for 2025

Beginning on January 1, 2025, defense officials said service members will get an average 5.4% rise in their Basic Allowance for Housing (BAH). This change is the same as the increase in 2024 and is meant to balance out the rise in living costs across the country.

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The average boost is 5.4%, but it depends on where you are, your rank, and your dependency status. For example, an E-5 stationed near Fort Cavazos, Texas, with children will get $180 more monthly, a 12.8% raise compared to 2024. On the other hand, an E-5 in the same place who doesn't have any dependents will see a 9.8% rise or an extra $129 per month.

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When BAH rates decrease in certain places, service members who are already stationed there will not be punished. As part of a strategy to protect rates, they will keep getting the same 2024 rates.

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In 2025, housing payments worth about $29.2 billion will be given to about 1 million service members. The rent for troops living in privately owned housing will stay the same as their BAH. This way, these residents will not have to pay more out of pocket.

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For 299 military housing places across the US, the Defense Department looks at rent prices, utility bills, and other information to come up with BAH rates. The U.S. Census Bureau, the Bureau of Labor Statistics, and military housing offices all have a say in the process.

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The change in the allowance is helpful, but the Government Accountability Office wants the Pentagon to change how it figures out BAH. The Department of Defense is looking over these steps to help better service members who are having trouble finding affordable housing.

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