2025 Bah Rate Increase News. The department of defense has officially released the 2025 basic allowance for housing (bah) rates, which will take effect on january 1, 2025. Department of defense (dod) as part of the annual defense budget.

Starting january 1, the 5.4% average bah rate increase works toward offsetting the high inflation seen over the past year. The department of defense recently announced a significant update for 2025, with bah rates set to increase by 5.4%.