BAH rates are reset every January 1, and in some housing areas the new rate is lower than the old one. When that happens, members already stationed there do not take a cut. This is called individual rate protection, and it is the reason two people of the same rank on the same base can receive different BAH.
How it works
If the new rate for your housing area, grade and dependency status is lower than what you were receiving on December 31, you keep the higher amount. If the new rate is higher, you get the new rate. In other words, your BAH can go up in January but it cannot go down, as long as nothing else about your situation changes.
Protection lasts for as long as you stay eligible. If your area’s rate falls in 2027 and rises above your protected amount in 2029, you move up to the new rate from then on.
What keeps it
- Staying at the same permanent duty station.
- Keeping the same dependency status, with or without dependents.
- Not being reduced in grade.
A promotion does not cost you protection. When you are promoted, you receive whichever is higher: the protected amount or the current rate for your new grade.
What ends it
- A permanent change of station. At the new base you get that area’s current rate. See what happens to BAH when you PCS.
- A change in dependency status. Getting married, or losing your last dependent through divorce or a child aging out, moves you to the current rate for your new status.
- A reduction in grade, for example through non-judicial punishment.
If your protected amount ends, you move to the current published rate for your grade, status and duty station.
Why it exists
BAH follows local rents, and rents can fall as well as rise. Without protection, a member who signed a lease based on one year’s rate could find their allowance cut the next January while their rent stayed the same. Rate protection gives members a stable allowance for as long as they stay put.
Two people, two rates
Because of protection, a member who arrived at a base before a rate decrease can be paid more than someone of the same grade who arrived after it. The newer arrival is paid the current rate. This is normal and not a pay error.
Check your rate
The 2027 rates are expected in mid-December. When they are published, every BAH page on this site will show the new rates. If the 2027 rate for your area is lower than your current BAH, your Leave and Earnings Statement should continue to show the higher amount after January 1.