Eligibility factors

Basic allowance for housing is given to members so that they can provide housing for themselves and their dependents (usually spouse and children).^[3] BAH is given when the member or their dependents do not occupy government quarters or barracks.

BAH is non-taxable money paid on a monthly basis. There are 3 factors for determining the amount of BAH:

1. Marital status^[4] – In Britain, this allowance used to be called "marriage allowance" in the 1930s.^[5] In the United States, as of 2018, the U.S. military required its members to produce marriage documentation.^[6]
2. Pay grade – This is essentially synonymous with rank, the higher the grade, the higher the BAH.
3. Location in the United States – BAH is intended to match the average monthly rent in the area where the member is stationed, thus more expensive regions (they are indexed 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.
4. Dependents – 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.

The following do not affect the amount of BAH:

• The number of dependents (a member with a spouse and no children and a spouse and one or several children receive the same amount of BAH).
• The actual amount paid for rent.
• The size of the unit (unlike other calculations like HUD's FMR)

Reservists who are activated, even if they are housed by the military during their mobilization, are still paid BAH on the assumption that a reservist 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.

A service member who is married makes substantially more allowance money than a single member.^[7][8] Reports of soldiers marrying for the extra pay are not uncommon.^[9]

Determining allowances

Robert D. Niehaus, Inc. (RDN), a private firm based in California is contracted to provide the data used to calculate BAH allowances.^[10]