Basic Allowance for Housing Basic Allowance for Housing ( BAH ) is a United States military entitlement given to many military members . It was previously called Basic allowance for quarters ( BAQ ) and is administered by the Defense Travel Management Office ( DTMO ) . How it works . Eligibility Factors . BAH is given to members so that they can provide housing for themselves and their dependents ( usually spouse and children ) . BAH is given when the member and their dependents do not occupy government quarters . BAH is non tax able money paid on a monthly basis . There are 3 factors for determining the amount of BAH : The United States Department of Defense is conducting a study of the pros and cons of removing the differences between with and without dependent BAH , as it is a common complaint of " prejudice " by members without dependents . The following " do not " affect the amount of BAH : Some members look for quarters that charge less than the BAH and are therefore able to keep the extra money ; while others find places that charge more than the BAH , and must make up the difference themselves . Reservists who are activated , even if they are housed by the military during their mobilization , are still paid BAH on the assumption that a reseervist still may have the civilian obligations ( like a mortgage ) that BAH is designed to offset . Lastly , veterans who are full - time students taking advantage of the Post 9 - 11 GI Bill are given an allowance pegged to the BAH with dependents rate for an E - 5 , irrespective of their rank or dependent status . Determining Allowances . Robert D . Niehaus , Inc . ( RDN ) , a private firm based in California is contracted to provide the data used to calculate BAH allowances . Locations . Every location in the U . S . has a BAH , including those without a significant military population . Non - military areas are combined with similar priced rental markets based on U . S . Housing and Urban Development ( HUD ) ' s Fair Market Rent ( FMR ) data , and then use same RDN BAH source data available for similar areas . These comparably priced groups are called " County Cost Groups " ( CCGs ) . There are 39 CCGs in the U . S , consisting of half of all counties ( about 1 , 500 ) containing less than two percent of the uniformed services ' population eligible to receive BAH . Methodology . The following data sources are used to determine BAH : Timing . BAH changes every year , based on data gather during the Summer / Spring active rental seasons . Generally BAH changes 2 - 5 % annually and 5 - 10 % in " hot " markets . OHA . Overseas Housing Allowance , or OHA may be given instead of BAH when a member is stationed outside the United States . Overseas Housing Allowance ( OHA ) which is similar , but has some significant differences . In OHA , each country , and each region in a country have a cap on a per month basis as to what the military will pay for housing . OHA is the exact amount of monthly rent in the local currency ( so the exchange rate is taken into consideration each month as the member is paid in US dollars ) up to the cap . OHA may also be paid in certain circumstances if the dependents are living overseas , for example if a member is deployed , and the dependents stay in a country outside of the US . Frequently a " utility allowance " also accompanies OHA . This is usually a flat rate given to the member to cover the cost of utilities , regardless of the actual amount . 2013 Allowances . U . S . Military Housing Areas ( 350 ) U . S . County Cost Groups ( 39 ) Overseas Housing Allowances