BAH Explained: How Your Housing Allowance Works During a PCS
BAH is one of your most important military pay entitlements. Here's how it's calculated, when it changes during a PCS, and how to make sure you're getting the right amount.
How BAH Is Calculated BAH is calculated using three factors: your pay grade, your dependency status (with or without dependents), and the ZIP code of your permanent duty station. The Department of Defense surveys local rental markets annually and sets BAH rates intended to cover approximately 95% of median rental costs for your grade and market. Rates are updated every January 1st. BAH is tax-free. A BAH of $2,400/month is worth more than $2,400 in taxable income because you keep the full amount...
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