Basic Allowance for Housing (BAH) is adjusted in a number of different ways in order to accommodate the various housing situations that service members find themselves in. Generally, the allowance you receive is based on your location (that’s where you are assigned; not where you live), your pay grade, and whether or not you have dependents. You may also obtain some BAH if you have dependents not living with you, in instances such as unaccompanied overseas tours or children living with a former spouse. Since the rules concerning BAH vary according to specific scenarios, it is best to contact your Finance Officer to properly understand what amount you are entitled to.
One type of benefit is the BAH Reserve Component/Transit (BAH RC/T). It is a non-locality housing allowance that does not vary based on geographic location. It's for service members in particular situations. For instance, reservists who are on active duty for 30 days, or fewer, are entitled to this type of allowance. BAH RC/T also applies if they are in transit from selected areas where no prior BAH rate exists (such as overseas). BAH RC/T is set based on the previous Basic Allowance for Quarters (BAQ), which was based on the national average for housing. New rates are published annually and determined by increasing the previous year's rates by the national average percentage growth of housing costs.
The BAH rates change depending on whether you’re a service member "with dependents" or "without dependents."The BAH-Differential (BAH-Diff) depends solely on a member’s payment of child support. This housing allowance amount is for service members living in single-type, government housing, and is only awarded if the monthly rate of child support is more than the BAH-Diff amount. This amount—updated and published annually—is determined by the Secretary of Defense by increasing the previous year's rates by the percentage growth of military basic pay.