BAH GOT YOU STUCK? HOW TO SURVIVE THE 2025 HOUSING SQUEEZE ON AND OFF BASE

By Natalie Oliverio

Rising rents. Long waitlists. Stagnant BAH. The 2025 housing crunch is hitting troops hard.

If you’re an active duty service member in 2025, you’ve likely felt the pinch: your Basic Allowance for Housing (BAH) just doesn’t stretch as far as it used to.

Whether you’re stationed in San Diego, Norfolk, Hawaii, or even mid-sized towns like Fayetteville or Killeen, the story is the same—rents are up, home prices are up, and BAH hasn’t kept pace. The result?

Many military families are stuck making hard financial choices between settling for subpar housing, dipping into savings, or racking up credit card debt just to stay afloat.

Let’s break down the current gap between BAH and real-world housing costs, to better understand the systemic issues fueling the housing crisis for military families, and offer practical solutions for those navigating today’s tough housing market.

Part 1: BAH vs. Real-World Rent—The Current Reality

BAH is intended to cover 95% of the average housing costs (rent + utilities) for service members in each zip code. But in 2025, that model is proving to be dangerously out of sync with the market.

Here’s why:

Housing prices have skyrocketed. Over the past 3 years, rents in military-heavy areas have risen 12–30%, far outpacing BAH increases, which have averaged just 4.2% annually.
Military towns aren’t immune. Cities like Colorado Springs, Jacksonville, and Honolulu have seen double-digit rent hikes, making it nearly impossible for junior enlisted and even some NCOs to afford housing without going out of pocket.
Utilities are rising too. Power, water, and internet bills have all increased across the board, yet are not always fully factored into BAH calculations.
Off-base rentals are scarce. With more remote workers and investors flooding into mid-tier cities, affordable rentals are drying up—particularly near base gates.

Example:

At Naval Base San Diego (ZIP 92136), BAH for an E-5 with dependents is $3,066/month in 2025. But the average rent for a modest 3-bedroom home within commuting distance is $3,550+, not including rising utility costs.

That’s a shortfall of $500 or more each month.

Part 2: On-Base Housing Isn’t Always the Answer

Some assume living on base solves the problem—but it’s not that simple.

Waitlists are long. In many high-demand installations, waitlists for on-base housing exceed 6–12 months, forcing families to seek temporary housing off-base—often at a loss.
Privatized housing issues persist. Despite Congressional scrutiny, some base housing contractors continue to fall short in terms of safety, quality, and responsiveness.
No pocketing of BAH. When you live on base, 100% of your BAH is automatically redirected to the housing contractor—regardless of the unit’s actual condition or market rate.

Part 3: Why BAH Isn’t Keeping Up

The BAH calculation process, managed by DoD and contractors like Runzheimer, relies on annual market surveys. But this approach lags behind real-time market shifts.

Here’s what’s wrong:

Outdated data: Market data used to adjust BAH is based on prior-year trends, which makes it nearly impossible to keep pace in hot markets.
Zip code limitations: BAH is based on zip code averages, which may not reflect the actual neighborhoods service members are forced to rent in.
BAH covers only 95% by design: Since 2015, Congress removed the 100% coverage guarantee, forcing service members to cover the remaining 5%—which in today’s market, can equal hundreds of dollars.

Part 4: Real Impact on Military Families

The mismatch between BAH and real housing costs isn’t just a budget issue—it affects morale, retention, and readiness.

Military spouses are re-entering the workforce out of necessity, not choice—despite childcare challenges and underemployment.
Junior enlisted families are going into debt or relying on food pantries.
PCS moves are becoming financial burdens, especially when arriving in high-cost markets with no housing options secured.

Part 5: What You Can Do—Practical Solutions and Resources

1. Understand your BAH rights and appeal process.

You can submit a BAH rate protection request or appeal through your command if you’ve experienced financial hardship or if there’s a clear mismatch in your housing costs. Keep documentation.

2. Use DoD resources wisely.

Military Housing Offices (MHO) can help you find vetted listings and negotiate leases.
Automated Housing Referral Network (AHRN) connects you with available rentals near base.
Military OneSource provides free financial counseling and PCS planning tools.

3. Explore shared housing or roommate options.

This isn’t just for single service members. Some dual-income families are creatively sharing larger homes to offset high rents.

4. Support systemic change.

Service members and spouses can:

Contact elected representatives to support BAH reform legislation.
Join base-level housing advisory councils to elevate concerns.
Engage with military advocacy groups like Blue Star Families or Military Officers Association of America (MOAA) who are actively lobbying for better housing policies.

5. Buy wisely.

For those stationed in one location long enough, using the VA home loan benefit to purchase a home may provide stability and tax advantages—but beware of inflated home prices and ensure you aren’t buying at the peak.

Your Voice Matters

Housing is more than just a cost—it’s the foundation of your family’s wellbeing and your ability to focus on mission success. While the BAH system is broken in many ways, awareness is growing—and change is possible.

But in the meantime, military families are left to navigate a tight, expensive market with limited support.

By staying informed, using available resources, and advocating for reform, you can take control of your situation and help drive the changes our community desperately needs.

BAH vs. Average Rent in 2025

Stay Informed on the Pay You Deserve

Military compensation—including BAH—is always evolving. Don’t miss out on updates that affect your bottom line.

Download the latest BAH group breakdown to see where you stand and what you should be receiving.

Click below to see the latest BAH rates:

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