Military members will receive an average 5.4% increase in their basic housing allowance in 2025, defense officials announced Friday. The new tariffs come into force on January 1st.

The average increase, which is the same percentage increase as the 2024 version, does not mean that everyone will see the same amount of money in their account.

For example, an E-5 with dependents in the Copperas Cove area near Fort Cavazos, Texas will see a 12.8% increase in BAH, which is $180 per month more than in 2024. An E-5 without dependents, on the other hand, will see a 9.8% increase, which is $129 more per month than last year.

On the other hand, in any areas where the BAH is reduced, troops that remain stationed in these areas will not be penalized and will instead continue to receive the same amount spent in 2024.

Troops can view the new 2025 BAH rates by entering their zip code and rank into the Department of Defense’s BAH tool.

For military personnel living in privatized apartments, the rent remains the same BAH, so privatized apartment landlords receive the additional money.

Defense officials said an estimated $29.2 billion will be paid in housing benefits for about a million military personnel in 2025.

The rising cost of housing in recent years has hit many military personnel hard. In 2023, defense officials increased BAH rates by an average of 12.1%, representing the largest year-over-year BAH increase in at least 15 years.

BAH rates are determined based on rental cost data for various housing types collected each year for 299 military housing areas across the United States, including Alaska and Hawaii.

Setting BAH rates requires data and input from the U.S. Census Bureau, the Bureau of Labor Statistics Consumer Price Index, commercial subscription rental markets, industry-leading online rental listing websites, military services, and local housing authorities for military installations.

The BAH calculations include the median current market rent and average utility costs for six different housing types in each of the residential areas. BAH rates are also calculated for each grade, both with and without dependents, based on the housing choices of civilians with comparable income to troops in those grades.

The Government Accountability Office has reported that the Pentagon needs to improve the way it calculates troops’ housing costs. Defense officials are in the process of reviewing these procedures.