July 31, 2025
5 minutes
Welcome to your go-to 2025 BAH Update Hub. Whether stationed stateside or overseas, preparing for a PCS, or planning a home purchase with your VA loan, this page informs you on Basic Allowance for Housing (BAH).
What Is BAH?
BAH is a monthly, tax-free stipend offered to active-duty military personnel to offset housing costs when living off base. It adjusts annually to reflect the real-time rental market and utility costs around military installations.
2025 BAH Overview
Average National Increase: +5.4%
Top Gaining Markets:
- San Diego, CA
- Fort Liberty, NC
- Joint Base Lewis-McChord, WA
- Honolulu, HI
- Norfolk, VA
Rate Protection: Locked-in rates for those who stay at the same duty station
Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
Key Facts About BAH
- Based on the duty station ZIP code, not where you live
- Components: Median rent + utilities (water, sewer, electricity, trash)
- Eligibility: Active-duty, off-base, Title 10 orders over 30 days
- Dual-Military Households: Each member gets BAH, but only one at the with-dependents rate
BAH as a Homeownership Tool
You can use your BAH toward:
- Monthly rent
- VA home loan mortgage payments
- Shared housing expenses
VA Loan Benefits Include:
- $0 down payment
- No private mortgage insurance (PMI)
- Competitive interest rates
Pro Tip: Use your excess BAH (if rent/mortgage is lower) to cover maintenance, save for upgrades, or pay down your loan faster.
Renting vs. Buying in 2025
| Renting Advantages | Buying Advantages |
|---|---|
| Flexibility for PCS | Build equity over time |
| Low upfront cost | Stabilize monthly housing cost |
| Minimal maintenance | Leverage VA loan power |
Helpful Tools
- reAlpha Mortgage offers personalized consultations to help you maximize your BAH and buy smarter with exclusive buyer rebates. NMLS #1743790 | Equal Housing Lender
- reAlpha helps military families find homes - a powerful edge in today’s market.
Veterans Can Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together
FAQs
What if my BAH decreased in 2025?
If you haven’t moved or changed ranks, you’re protected under BAH Rate Protection.
Can I use BAH to buy a home?
Yes, your BAH is counted as qualifying income for VA loans.
Does BAH cover utilities and HOA fees?
BAH includes an estimate of utilities but not HOA fees or mortgage interest.
Can dual-military couples both receive BAH?
Yes, but only one can receive the higher with-dependent rate.
Am I eligible for BAH?
If you're on active duty for 30+ days, living off base, and not in government housing, you likely qualify.
Final Notes
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Ready to buy smart and save big? Explore your rebate now with reAlpha Mortgage.
Disclosures:
- reAlpha Mortgage, LLC | NMLS #1743790 | Equal Housing Lender
- BAH rates are set by the Department of Defense and may vary annually.
- All housing information is for educational purposes and not financial or legal advice.
- reAlpha reAlpha is not a lender or broker and does not issue credit decisions.
- Verify your BAH eligibility and VA loan status with VA.gov or your military housing office.
Get the latest market trends, homebuying tips, and insider updates—straight to your inbox. No fluff, just the good stuff.
Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.