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Basic Allowance for Housing rates for 2019 are released; will increase an average of 2.55 percent

House with an American flag. (Pexels/Released)
December 17, 2018
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Calculate your 2019 BAH rate here.

Basic Allowance for Housing rates will increase an average of 2.55 percent beginning on January 1, 2019, the Department of Defense announced late Friday afternoon.

“The 2019 BAH program expands the member cost-sharing element (out-of-pocket expense) while continuing to balance the growth in compensation costs,” according to a press release. “Based on the authority provided in the FY 2016 National Defense Authorization Act, the cost-sharing element was increased to five percent.  For 2019, a typical member will need to absorb five percent of the national average housing cost by pay grade. The out-of-pocket amounts incorporated in the 2019 BAH rates vary by grade and dependency status and range from $66 to $149 monthly.”

The release also notes that “Median current market rent and average utilities (including electricity, heat, and water/sewer) comprise the total housing cost for each military housing area and are included in the BAH computation. Total housing costs are developed for six housing profiles (based on dwelling type and number of bedrooms) in each military housing area. Basic Allowance for Housing rates are then calculated for each pay grade, both with and without dependents.”

More information on Basic Allowance for Housing, including the 2019 rates and 2019 rate component breakdown, can be found here.

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