The Department of Defense (DoD) evaluates specific criteria when determining it’s Basic Housing Allowance (BAH), also known as the Monthly Housing Allowance (MHA) for VA purposes. The allowance is set based on geographic duty location, pay grade, and dependent status. The DoD and the Services designed the BAH program to provide accurate housing allowances based on the market price of rental housing rather than member‐reported rents.
The BAH program measures rental‐housing costs in the civilian market rather than measuring how much members spend on housing, ensuring a more accurate correlation between allowance payments and rental prices. See additional information on housing rates.