Madison BAH Rates - Your Comprehensive Guide to BAH

For active duty military, life often entails frequent moves, with changes in homes, schools, and even Basic Allowance for Housing (BAH) rates. For Air National Guard and Army National Guard members you get BAH if you are on AGR orders or are on AT orders over 30 days.  For WIANG your BAH changes similar to your active duty counterparts. To navigate the complexities of the Permanent Change of Station (PCS) rollercoaster, it's crucial to ask the right questions before accepting a postion at another base (Example Madison to Volk Field). In this article, we'll provide answers to common queries about BAH rates and how they impact military service members.

Q1. What is the Basic Allowance for Housing?

The Basic Allowance for Housing (BAH) is a monetary allowance provided to military service members to assist with housing costs when not residing in government-provided housing or on a military installation. Factors influencing BAH rates include duty location, rank, and whether the service member has dependents. Rates are subject to annual changes based on the defense budget, with updates released in December for implementation on January 1 of the following year.  BAH is tax free, you do not pay state or federal tax on it.

Q2. How is military BAH calculated?

The Defense Travel Management Office (DTMO) oversees BAH calculations for the Department of Defense. DTMO collects housing cost data, including rent and utilities, from military housing areas across the United States. This data is then linked to pay grades and dependency statuses, resulting in the six standard housing profiles.

Q3. Where can I look up my rates?

You can easily find your BAH rate by zip code using the DTMO website. The BAH rates for the 115th Fighter Wing (Madison, Wisconsin) are below.

Q4. Why is BAH not covering full housing costs?

Originally designed to cover 80% of housing costs, BAH increased to 100% in 2005. However, changes introduced in the 2015 and 2016 Defense Authorization Acts, including the exclusion of renters insurance from calculations and a cost-sharing element, brought the coverage down to 95%.

Q5. Is military BAH designed to offset costs of renting or purchasing a home?

While service members can use BAH as they choose, it is designed to cover the median cost of renting locally, not homeowner expenses.

Q6. Does family size make a difference in BAH rates?

No, BAH rates do not increase with multiple dependents. The with-dependent rate is based on average family size among civilians.

Q7. Why is BAH based on duty location and not residence location?

BAH is based on duty station to ensure compensation for typical housing costs near the installation. This prevents incentivizing living in certain areas solely for financial gain.

Q8. I am divorced with children, what is my BAH?

Service members with primary or sole custody of their children receive the with-dependent BAH rate; otherwise, they receive the without-dependent rate.

Q9. What is BAH for dual-military couples?

For dual-military couples, BAH depends on whether they have children. With children, one member receives with-dependent BAH, and the other without; without children, both receive the without-dependent rate.

Q10. What happens when military BAH rates change?

If BAH rates increase in your area, your benefits increase, while decreasing rates do not affect your benefits due to BAH rate protection. Changes only occur with PCS, a reduction in pay grade, or a change in dependency status.

* Data obtained by Defense Travel Managmeent Office