How Basic Allowance For Housing (BAH) Works
BAH is given to active military members so they may provide themselves with housing. BAH is provided when the member and their dependents do not occupy government housing, and is Non Taxable money that is paid on a monthly basis.
There are three factors that determine the amount of BAH a member is provided:
1. Pay Grade
This is essentially synonymous with rank. The higher the grade, the higher the BAH.
BAH is intended to match the average monthly rent in the area where the member is stationed, thus more expensive regions (by zip codes) to live allocate more BAH. Depending on the status of the assignment (such as temporary duty, or an unaccompanied assignment) the BAH may be calculated where the dependents actually reside.
There are 2 types or BAH, with dependents and without dependents. The rationale behind this is that a single person doesn’t need as much room as a couple or a family.
One of the complaints regarding how BAH is calculated is that the number of dependents doesn’t increase your BAH.
Use Your BAH With a VA Home Loan
Contact a VA Loan Specialist now and learn about using your Basic Allowance for Housing (BAH) towards owning a home!
Call Intercap Lending Toll Free (888) 643-2133 and a VA Loan Specialist will help you (there is no cost or obligation).