37 U.S.C. § 403: Basic allowance for housing

Except as otherwise provided by law, a member of a uniformed service who is entitled to basic pay is entitled to a basic allowance for housing at the monthly rates prescribed under this section or another provision of law with regard to the applicable component of the basic allowance for housing. The amount of the basic allowance for housing for a member will vary according to the pay grade in which the member is assigned or distributed for basic pay purposes, the dependency status of the member, and the geographic location of the member. The basic allowance for housing may be paid in advance. A member of a uniformed service with dependents is not entitled to a basic allowance for housing as a member with dependents unless the member makes a certification to the Secretary concerned indicating the status of each dependent of the member. The certification shall be made in accordance with regulations prescribed by the Secretary of Defense. The Secretary of Defense shall prescribe the rates of the basic allowance for housing that are applicable for the various military housing areas in the United States. The rates for an area shall be based on the costs of adequate housing determined for the area under paragraph (2). The Secretary of Defense shall determine the costs of adequate housing in a military housing area in the United States for all members of the uniformed services entitled to a basic allowance for housing in that area. The Secretary shall base the determination upon the costs of adequate housing for civilians with comparable income levels in the same area. After June 30, 2001 , the Secretary may not differentiate between members with dependents in pay grades E–1 through E–4 in determining what constitutes adequate housing for members. the amount of the monthly cost of adequate housing in that area, as determined by the Secretary of Defense, for members of the uniformed services serving in the same pay grade and with the same dependency status as the member; and the amount equal to a specified percentage (determined under subparagraph (B)) of the national average monthly cost of adequate housing in the United States, as determined by the Secretary, for members of the uniformed services serving in the same pay grade and with the same dependency status as the member. One percent for months occurring during 2015. Two percent for months occurring during 2016. Three percent for months occurring during 2017. Four percent for months occurring during 2018. Five percent for months occurring after 2018. An adjustment in the rates of the basic allowance for housing under this subsection as a result of the Secretary’s redetermination of housing costs in an area shall take effect on the same date as the effective date of the next increase in basic pay under section 1009 of this title or other provision of law. On and after July 1, 2001 , the Secretary of Defense shall establish a single monthly rate for members of the uniformed services with dependents in pay grades E–1 through E–4 in the same military housing area. The rate shall be consistent with the rates paid to members in pay grades other than pay grades E–1 through E–4. So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing within an area of the United States, the monthly amount of the allowance for the member may not be reduced as a result of changes in housing costs in the area or the promotion of the member. is located in an area covered by a declaration by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) that a major disaster exists; or contains one or more military installations that are experiencing a sudden increase in the number of members of the armed forces assigned to the installation. The Secretary of Defense shall base the amount of the increase to be made in the rates of basic allowance for housing for an area on a determination by the Secretary of the amount by which the costs of adequate housing for civilians have increased in the area by reason of the disaster or the influx of military personnel, except that the increase may not exceed the amount equal to 20 percent of the rate of basic allowance for housing otherwise prescribed for the area. A member may be paid a basic allowance for housing at a rate increased under this paragraph only if the member certifies to the Secretary concerned that the member has incurred increased housing costs in the area by reason of the disaster or the influx of military personnel. Subject to subparagraph (E), an increase in the rates of basic allowance for housing in an area under this paragraph shall remain in effect until the effective date of the first adjustment in rates of basic allowance for housing made for the area pursuant to a redetermination of housing costs in the area under this subsection that occurs after the date of the increase under this paragraph. An increase in the rates of basic allowance for housing for an area may not be prescribed under this paragraph or continue after December 31, 2026 . The Secretary of Defense may prescribe a temporary adjustment in the current rates of basic allowance for housing for a military housing area or a portion thereof (in this paragraph, “BAH rates”) if the Secretary determines that the actual costs of adequate housing for civilians in that military housing area or portion thereof differs from the current BAH rates by more than 20 percent. Any temporary adjustment in BAH rates under this paragraph shall remain in effect only until the effective date of the first adjustment of BAH rates for the affected military housing area that occurs after the date of the adjustment under this paragraph. This paragraph shall cease to be effective on December 31, 2026 . The Secretary of Defense may prescribe an overseas basic allowance for housing for a member of a uniformed service who is on duty outside of the United States. The Secretary shall establish the basic allowance for housing under this subsection on the basis of housing costs in the overseas area in which the member is assigned. So long as a member of a uniformed service retains uninterrupted eligibility to receive a basic allowance for housing in an overseas area and the actual monthly cost of housing for the member is not reduced, the monthly amount of the allowance in an area outside the United States may not be reduced as a result of changes in housing costs in the area or the promotion of the member. The monthly amount of the allowance may be adjusted to reflect changes in currency rates. incurred by the member in occupying private housing outside of the United States; and authorized or approved under regulations prescribed by the Secretary concerned. Expenses for which a member may be reimbursed under this paragraph may include losses relating to housing that are sustained by the member as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located. The Secretary concerned shall recoup the full amount of any deposit or advance rent payments made by the Secretary under subparagraph (A), including any gain resulting from currency fluctuations between the time of payment and the time of recoupment. A member of a uniformed service with dependents who is on permanent duty at a location described in paragraph (2) may be paid a family separation basic allowance for housing under this subsection at a monthly rate equal to the rate of the basic allowance for housing established under subsection (b) or the overseas basic allowance for housing established under subsection (c), whichever applies to that location, for members in the same grade at that location without dependents. to which the movement of the member’s dependents is not authorized at the expense of the United States under section 452 of this title , and the member’s dependents do not reside at or near the location; and at which quarters of the United States are not available for assignment to the member. If the member’s assignment to duty in that area, or the circumstances of that assignment, require the member’s dependents to reside in a different area, as determined by the Secretary concerned, the amount of the basic allowance for housing for the member shall be based on the area in which the dependents reside or the member’s last duty station, whichever the Secretary concerned determines to be most equitable. If the member’s assignment to duty in that area is under the conditions of a low-cost or no-cost permanent change of station or permanent change of assignment, the amount of the basic allowance for housing for the member shall be based on the member’s last duty station if the Secretary concerned determines that it would be inequitable to base the allowance on the cost of housing in the area to which the member is reassigned. The area of the duty station to which the member is reassigned. The area in which the dependents reside, but only if the dependents reside in that area when the member departs for the duty station to which the member is reassigned and only for the period during which the dependents reside in that area. The area of the former duty station of the member, if different than the area in which the dependents reside. A family separation basic allowance for housing paid to a member under this subsection is in addition to any other allowance or per diem that the member receives under this title. A member may receive a basic allowance for housing under both paragraphs (1) and (3). Except as otherwise provided by law, a member of a uniformed service who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service appropriate to the grade, rank, or rating of the member and adequate for the member and dependents of the member, if with dependents, is not entitled to a basic allowance for housing. A member without dependents who is in a pay grade above pay grade E–6 and who is assigned to quarters in the United States or a housing facility under the jurisdiction of a uniformed service, appropriate to the grade or rank of the member and adequate for the member, may elect not to occupy those quarters and instead to receive the basic allowance for housing prescribed for the member’s pay grade by this section. A member without dependents who is in pay grade E–6 and who is assigned to quarters of the United States that do not meet the minimum adequacy standards established by the Secretary of Defense for members in such pay grade, or to a housing facility under the jurisdiction of a uniformed service that does not meet such standards, may elect not to occupy such quarters or facility and instead to receive the basic allowance for housing prescribed for the member’s pay grade under this section. The Secretary concerned may deny the right to make an election under paragraph (2) or (3) if the Secretary determines that the exercise of such an election would adversely affect a training mission, military discipline, or military readiness. A member with dependents who is assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service may be paid the basic allowance for housing if, because of orders of competent authority, the dependents are prevented from occupying those quarters. A member of a uniformed service without dependents who makes a permanent change of station for assignment to a unit conducting field operations is not entitled to a basic allowance for housing while on that initial field duty unless the commanding officer of the member certifies that the member was necessarily required to procure quarters at the member’s expense. Except as provided in subparagraphs (B) and (C), a member of a uniformed service without dependents who is in a pay grade below pay grade E–6 is not entitled to a basic allowance for housing while the member is on sea duty. Under regulations prescribed by the Secretary concerned, the Secretary may authorize the payment of a basic allowance for housing to a member of a uniformed service without dependents who is serving in a pay grade below E–6 and is assigned to sea duty. In prescribing regulations under this subparagraph, the Secretary concerned shall consider the availability of quarters. Notwithstanding section 421 of this title , a member of a uniformed service in a pay grade below pay grade E–6 who is assigned to sea duty and is married to another member of a uniformed service is entitled to a basic allowance for housing subject to the limitations of subsection (e). The Secretary of Defense, and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, shall prescribe regulations defining the terms “field duty” and “sea duty” for purposes of this section. which is maintained as the primary residence of the member at the time of the call or order; and which is owned by the member or for which the member is responsible for rental payments. The Secretary concerned may provide a basic allowance for housing to a member described in paragraph (1) at a monthly rate equal to the rate of the basic allowance for housing established under subsection (b) or the overseas basic allowance for housing established under subsection (c), whichever applies to the location at which the member is serving, for members in the same grade at that location without dependents. The member may receive both a basic allowance for housing under paragraph (1) and under this paragraph for the same month, but may not receive the portion of the allowance authorized under section 452 of this title , if any, for lodging expenses if a basic allowance for housing is provided under this paragraph. Except in the case of a member of a reserve component without dependents who is called or ordered to active duty to attend training for at least 140 days but fewer than 365 days, paragraphs (1) and (2) shall not apply if the member is authorized transportation of household goods under section 453(c) of this title as part of the call or order to active duty described in such paragraph. A member who is called or ordered to active duty for a period of more than 30 days. A member who is called or ordered to active duty for a period of 30 days or less in support of a contingency operation. The Secretary of Defense shall establish a rate of basic allowance for housing to be paid to a member of a reserve component while the member serves on active duty under a call or order to active duty specifying a period of 30 days or less, unless the call or order to active duty is in support of a contingency operation. This paragraph applies with respect to a member of a reserve component who performs active Guard and Reserve duty (as defined in section 101(d)(6) of title 10 ). The rate of basic allowance for housing to be paid to a member described in subparagraph (A) shall be based on the member’s permanent duty station, even during instances in which the member is mobilized for service on active duty other than active Guard and Reserve duty. During transitions in service status from active Guard and Reserve duty to other active duty and back to active Guard and Reserve duty, or following the start of new periods of service resulting from a change in orders, a member described in subparagraph (A) shall be considered as retaining uninterrupted eligibility to receive a basic allowance for housing in an area as provided for under subsections (b)(6) and (c)(2) so long as the member remains on active duty without a break in service. Clause (i) does not apply if the member’s permanent duty station changes as a result of orders directing a permanent change in station with the authority for the movement of household goods. For purposes of clause (i), a break in active service occurs when one or more calendar days between active service periods do not qualify as active service. Subsections (d)(3) and ( o ) also apply to a member described in subparagraph (A). Notwithstanding any other law (including those restricting the occupancy of housing facilities under the jurisdiction of a department or agency of the United States by members, and their dependents, of the armed forces above specified grades, or by members, and their dependents, of the National Oceanic and Atmospheric Administration and the Public Health Service), a member of a uniformed service, and the dependents of the member, may be accepted as tenants in, and may occupy on a rental basis, any of those housing facilities, other than public quarters constructed or designated for assignment to an occupancy without charge by such a member and the dependents of the member, if any. Such a member may not, because of occupancy under this subsection, be deprived of any money allowance to which the member is otherwise entitled for the rental of quarters. A member of a uniformed service is entitled to a temporary basic allowance for housing (at a rate determined by the Secretary of Defense) while the member is in a travel or leave status between permanent duty stations, including time granted as delay en route or proceed time, when the member is not assigned to quarters of the United States. The eligibility of an aviation cadet of the Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for housing shall be determined as if the aviation cadet were a member of the uniformed services in pay grade E–4. The Secretary of Defense shall prescribe regulations for the administration of this section. The Secretary concerned may make such determinations as may be necessary to administer this section, including determinations of dependency and relationship. When warranted by the circumstances, the Secretary concerned may reconsider and change or modify any such determination. The authority of the Secretary concerned under this subsection may be delegated. Any determination made under this section with regard to a member of the uniformed services is final and is not subject to review by any accounting officer of the United States or a court, unless there is fraud or gross negligence. Parking facilities (including utility connections) provided members of the uniformed services for house trailers and mobile homes not owned by the Government shall not be considered to be quarters for the purposes of this section or any other provision of law. Any fees established by the Government for the use of such a facility shall be established in an amount sufficient to cover the cost of maintenance, services, and utilities and to amortize the cost of construction of the facility over the 25-year period beginning with the completion of such construction. The Secretary of Defense, or the Secretary of Homeland Security in the case of the Coast Guard when not operating as a service in the Navy, may allow the dependents of a member of the armed forces who dies on active duty and whose dependents are occupying family housing provided by the Department of Defense, or by the Department of Homeland Security in the case of the Coast Guard, other than on a rental basis on the date of the member’s death to continue to occupy such housing without charge for a period of 365 days. are not occupying a housing facility under the jurisdiction of a uniformed service on the date of the member’s death; are occupying such housing on a rental basis on such date; or vacate such housing sooner than 365 days after the date of the member’s death. An allowance may be paid under paragraph (2) to the spouse of the deceased member even though the spouse is also a member of the uniformed services. The allowance paid under such paragraph is in addition to any other pay and allowances to which the spouse is entitled as a member. The payment of the allowance under paragraph (2) shall terminate 365 days after the date of the member’s death. while the member is on active duty; and while residing with the member, unless separated by the necessity of military service or to receive institutional care as a result of disability or incapacitation or under such other circumstances as the Secretary concerned may by regulation prescribe; and the member is not occupying a housing facility under the jurisdiction of the Secretary concerned on the date of the death of the sole dependent. The day that is one year after the date of the death of the sole dependent. The permanent change of station, or permanent change of assignment with movement of personal property and household goods under section 453(c) of this title , of the member. the member is assigned to a housing facility under the jurisdiction of a uniformed service; or the member is assigned to sea duty, and elects not to occupy assigned quarters for unaccompanied personnel, unless the member is in a pay grade above E–3. A member of a uniformed service assigned to quarters of the United States or a housing facility under the jurisdiction of a uniformed service who is not otherwise authorized a basic allowance for housing and who pays child support is entitled to the basic allowance for housing differential, except for months for which the amount payable for the child support is less than the rate of the differential. Payment of a basic allowance for housing differential does not affect any entitlement of the member to a partial allowance for quarters under subsection (n). the rate of the basic allowance for quarters (with dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997 , under this section (as in effect on that date); and the rate of the basic allowance for quarters (without dependents) for the member’s pay grade, as such rate was in effect on December 31, 1997 , under this section (as in effect on that date). Whenever the rates of basic pay for members of the uniformed services are increased, the monthly amount of the basic allowance for housing differential computed under paragraph (3) shall be increased by the average percentage increase in the rates of basic pay. The effective date of the increase shall be the same date as the effective date of the increase in the rates of basic pay. In the case of two members, who have one or more common dependents (and no others), who are not married to each other, and one of whom pays child support to the other, the amount of the basic allowance for housing paid to each member under this section shall be reduced in accordance with regulations prescribed by the Secretary of Defense. The total amount of the basic allowances for housing paid to the two members may not exceed the sum of the amounts of the allowance to which each member would be otherwise entitled under this section. A member of a uniformed service without dependents who is not entitled to receive a basic allowance for housing under subsection (b), (c), or (d) is entitled to a partial basic allowance for housing at a rate determined by the Secretary of Defense under paragraph (2). The rate of the partial basic allowance for housing is the partial rate of the basic allowance for quarters for the member’s pay grade as such partial rate was in effect on December 31, 1997 , under section 1009(c)(2) of this title (as such section was in effect on such date). In the case of a member who is assigned to duty at a location or under circumstances that make it necessary for the member to be reassigned under the conditions of low-cost or no-cost permanent change of station or permanent change of assignment, the member may be treated for the purposes of this section as if the member were not reassigned if the Secretary concerned determines that it would be inequitable to base the member’s entitlement to, and amount of, a basic allowance for housing on the cost of housing in the area to which the member is reassigned. waive the requirement to base the member’s entitlement to, and amount of, a basic allowance for housing on the new home port or permanent duty station member; and treat that member for the purposes of this section as if the unit to which the member is assigned did not undergo such a change. The Secretary concerned may grant a waiver under subparagraph (A) to not more than 100 members in a calendar year. the number of members granted a waiver under subparagraph (A) during that year; and the grade of the member; the home port or permanent duty station of the unit to which the member is assigned before the change described in subparagraph (A); and the new home port or permanent duty station of that unit. This paragraph shall cease to be effective on December 31, 2027 . when such member first receives such basic allowance for housing; and each time such member receives a permanent change of station. The amendments made by subsection (a) [amending this section] shall take effect on October 1, 2006 . After October 1, 2006 , the Secretary of Defense, and the Secretary of Homeland Security in the case of the Coast Guard, may pay the allowance authorized by section 403( l )(2) of title 37, United States Code, to a member of the uniformed services who is the spouse of a member who died on active duty during the one-year period ending on that date, except that the payment of the allowance must terminate within 365 days after the date of the member’s death.” The amendments made by this section [amending this section and provisions set out as a note below] shall take effect on October 1, 2000 . In the case of the amendment made by subsection (c)(2) [amending this section], the amendment shall apply with respect to pay periods beginning on and after October 1, 2000 , for a member of the uniformed services covered by the provision of law so amended regardless of the date on which the member was first reassigned to duty under the conditions of a low-cost or no-cost permanent change of station or permanent change of assignment. In the case of the amendment made by subsection (d) [amending this section], the amendment shall apply with respect to pay periods beginning on and after October 1, 2000 , for a member of the uniformed services covered by the provision of law so amended regardless of the date on which the member was first assigned to duty in an area that is different from the area in which the member’s dependents reside.” The amendments made by paragraphs (1) and (2) of subsection (a) [amending this section] shall take effect on October 1, 1985 . The amendment made by paragraph (3) of subsection (a) [amending this section] shall take effect on January 1, 1986 .” Except as provided in paragraph (2), the amendments made by this section [enacting section 403a of this title , amending this section, section 405 of this title , section 7572 of Title 10 , Armed Forces, and provisions set out as a note under this section, and enacting provisions set out as a note under this section] shall take effect on January 1, 1985 . is assigned to a permanent duty station in Alaska or Hawaii; and is entitled to payment of a temporary lodging allowance or a station housing allowance under section 475 [now 405] of such title. the date on which the member changes residence in conjunction with a permanent change of duty station; or the expiration of the four-year period beginning on the date of the enactment of the Department of Defense Authorization Act, 1986 [ Nov. 8, 1985 ]. A member who is entitled to a station housing allowance by reason of subparagraph (A) shall not be entitled to a variable housing allowance, except that such a member serving an unaccompanied tour of duty in Alaska or Hawaii may be paid a variable housing allowance based on the residence of the member’s dependents in another State. For the period beginning on January 1, 1985 , and ending on September 30, 1985 , the limitation applicable under subsection (d)(1) of section 403a of title 37 , United States Code (as added by subsection (d)), on the total amount that may be paid during a fiscal year for the variable housing allowance authorized members of the uniformed services by that section shall be 15 percent of the median annual costs of housing in the United States for members of the uniformed services as measured during fiscal year 1984. In determining for the purposes of clause (A) of such subsection the total amount authorized to be paid for such allowance for fiscal year 1985, such amount shall be determined as if the amendments made by this section took effect on October 1, 1984 .” reviewed and updated not less frequently than annually and as rates and calculation methods change; and made available on a publicly accessible internet website and distributed across all relevant components of the Department of Defense; and the information included in the document developed under paragraph (1); and an explanation of the type of rental housing the rate of BAH received by such members is intended to support in each locality. assesses the adequacy of the current BAH for MHAs selected under paragraph (3), including a review of the commuting times and distances of members of the Armed Forces and the overall affordability of housing in such MHAs; reviews existing methods of calculating BAH and proposes methods of calculating BAH described in paragraph (2) for MHAs selected under paragraph (3) that are more efficient and accurate than such existing methods, as appropriate; and evaluates the feasibility and advisability of using machine learning and artificial intelligence in the calculation of BAH and, if feasible and advisable, incorporates machine learning and artificial intelligence into the proposed methods described in clause (i). During the study conducted in accordance with subparagraph (A), the Secretary shall pay BAH in MHAs selected under paragraph (3) at rates prescribed under section 403 of title 37 , United States Code. accurately reflects housing prices in the MHA subject to such rate; and is sufficient for military families who reside in such MHA to procure adequate and affordable housing. Variety of geographic location. The ranks of members who reside in an MHA. Whether members who reside in an MHA have dependents. Economic factors including inflation, cost of living, and the cost of private mortgage insurance. An agreement entered into under paragraph (1)(A) shall require the study conducted under such agreement to be completed not later than the date that is three years after the date on which the Secretary and the covered entity enter into such agreement. Not later than 180 days after the date of the enactment of this Act [ Dec. 18, 2025 ], and on an annual basis thereafter until the completion of the study conducted in accordance with paragraph (1), the Secretary shall provide to the Committees on Armed Services of the Senate and the House of Representatives a briefing on the status of the study under this section. an evaluation by the Secretary of the proposed methods of calculating BAH by a covered entity pursuant to an agreement under paragraph (1); and any recommendations of the Secretary for legislation to improve the methods of calculating BAH based on the study. The term ‘BAH’ means the basic allowance for housing for members of the uniformed services under section 403 of title 37 , United States Code. with combined expertise in data analysis and machine learning and access to relevant data on local rental rates in real estate markets in the MHAs selected under subsection (b)(3); and that has not participated in anticompetitive price-fixing in a real estate market. The term ‘MHA’ means military housing area.” The basic allowance for housing paid to a member of a reserve component described in subparagraph (A) of paragraph (6) of section 403(g) of title 37 , United States Code, as added by subsection (a), who on January 2, 2013 , is being paid basic allowance for housing at a rate that is based on a housing area other than the member’s permanent duty station, shall be paid at that current rate until the member is assigned to perform duty at the member’s permanent duty station, at which time the member shall be paid basic allowance for housing at the prevailing permanent duty station housing area rate or at the permanent duty station housing rate for which the member has qualified under such paragraph (6). The Secretary of a military department, with the approval of the Secretary of Defense, may pay a member covered by paragraph (1) and under the jurisdiction of that Secretary a basic allowance for housing at a rate higher than the rate provided under such paragraph to ensure that the member is treated fairly and equitably or to serve the best interests of the United States.” During the period beginning on January 1, 2000 , and ending on September 30, 2001 (or such earlier date as the Secretary of Defense considers appropriate), a member of the uniformed services entitled to a basic allowance for housing for a military housing area in the United States shall be paid the allowance at a monthly rate not less than the rate in effect on December 31, 1999 , in that area for members serving in the same pay grade and with the same dependency status as the member. In light of the rates for the basic allowance for housing authorized by subsection (a), the Secretary of Defense may exceed the limitation on the total amount paid during fiscal year 2000 and 2001 for the basic allowance for housing in the United States otherwise applicable under section 403(b)(3) of title 37 , United States Code.”