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Basic Allowance for Housing for Military Families

The Department of Defense’s Basic Allowance for Housing (BAH) is designed to help those in the military handle the extra expenses of living off base.

Intended to provide service members compensation based on local civilian housing costs, the BAH is available to most pay grades at most locations. Payment rates are passed on geographic location, pay grade, and dependency status. BAH is also tax free.

Before you purchase off-base real estate, consult a military tax advisor for details on tax benefits and restrictions of the BAH. For more details, visit the Department of Defense website’s Defense Finance and Account Service page.