How does DoD develop BAH?
The purpose of the Basic Allowance for Housing (BAH) program is to provide fair housing allowances to service members. There are several types of BAH to satisfy various housing situations that occur among military members. In general, the amount of BAH a service member receives depends on location, pay grade, and whether he/she has dependents. BAH allowances are based on the market price of rental housing within a reasonable commuting distance. Under most circumstances, a service member will receive BAH for the location where they are assigned.
