Military Pay
2025 Military Pay Charts
Military members saw a 4.5% increase in 2025, with junior enlisted members seeing an additional 10% boost in the spring to bring the raise to roughly 14.5%.
Most servicemembers are familiar with the differences in BAH (Basic Allowance for Housing) rates based on various geographic regions and grades, but what is less commonly known is why the increase (or decrease) percentages vary by grade within the same zip code or housing area.
‘Not knowing why or how the BAH rates increase or decrease can lead to confusion when calculating your BAH into your monthly budget.
See 2026 Basic Allowance for Housing (BAH) rates here.
To put it simply, BAH rates are determined by three components sourced from experts and statistical data:
- Median current market rent (BAH is based on rental properties, not home ownership costs)
- Average utilities (including electricity, heat, and water/sewer)
- Average renter’s insurance.
Rental costs are collected on 6 BAH Standard Housing Profiles and applied to a grade:
| BAH Six Standard Housing Profiles | ||
| Profile | Grade With Dependents | Grade Without Dependents |
| 1 Bedroom Apartment | E-1, E-2, E-3, E-4 | |
| 2 Bedroom Apartment | O-1 | |
| 2 Bedroom Townhouse | E-5 | O-1E |
| 3 Bedroom Townhouse | E-6 | O-3E |
| 3 Bedroom Single Family Detached House | W-3 | O-6 |
| 4 Bedroom Single Family Detached House | O-5 |
BAH Doesn’t Cover All Housing Costs
BAH is designed to cover 95% of a service member’s housing costs. Changes to the BAH rules over time have resulted in coverage ranging from as low as 80% to as high as 100% BAH coverage.
The latest change was the Fiscal Year 2015 National Defense Authorization Act, which reduced BAH rates in two ways:
- 5% Removed from BAH – Reduced housing rates on average by one percent for service members.
- Renter’s Insurance – Contributed an average of one percent to rates, and was eliminated
The actual out‐of‐pocket expense for a service member may be higher or lower, based on his/her actual choice of housing. For example, if a service member chooses a larger or more expensive residence than the median, he or she will have larger out-of-pocket expenses. The opposite is true if a service member chooses to occupy a smaller or less costly residence.
BAH Individual Rate Protection
A service member’s BAH Rate cannot be less than the previous year, provided that the service member’s duty location, rank, and dependency status stay the same. This ensures that members who have made long-term commitments, such as through a lease or contract, are not penalized if the area’s housing costs decrease.
Rate protection continues unless the status of a service member changes due to:
- Permanent Change of Station (PCS)
- Reduction in pay grade
- Change in dependent status
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Jon Rehagan is a 2-time Emmy Award-winning journalist who covers financial topics and military news for the veteran community. With 16 years in broadcast media (including roles in radio and television) Jon has spent his career writing, shooting, editing, and producing everything from long-form investigative specials to daily news broadcasts and digital content. His work has been recognized by the Kansas Association of Broadcasters, and he brings that same commitment to accurate, accessible reporting to helping service members, veterans, and military families navigate complex benefits and financial decisions.
