BAH Went Up in 2025 but It Still Doesn’t Cover the House You Want

BAH increases help, but if you’ve started your home search near Fallon, Bridgeport, or Reno, you’ve probably noticed, they’re still not enough.

BAH increased in 2025, but is It Enough?

Orders drop. You open the apps, circle a few three-bed homes that would actually fit your life, and the numbers don’t add up. You’re not imagining it. BAH did rise again for 2025, 5.4% on average across the country, with local bumps around Northern Nevada and Bridgeport roughly at +7.5% for Fallon NAS, +2.0% for Reno/Carson City, and +6.2% for Bridgeport (E-5 with dependents as the yardstick). It helps, but it hasn’t erased the gap many families feel the first weekend they start looking.

Here’s the straight reason in one breath: BAH is based on HUD housing “anchors” that are usually apartments or townhomes, plus an assumed slice for utilities. In tight markets like Fallon and Bridgeport, where the thing you actually need is a clean three-bed single-family home near the station, the anchor doesn’t match the reality. Inventory is thin, asking rents move faster than the median, and on-base housing can involve a wait. That combination is why the math still feels off even after an increase.

So what’s the plan if you’re coming here this year and the allowance isn’t covering the house you pictured? Start by deciding whether you’re renting or buying and tailor the strategy to that choice.

If you’re buying, is a stretch town worth the drive?

Stretch towns trade a modest commute for better pricing, more inventory, and a stronger appreciation, which is a strong factor to consider when you PCS again. Around Fallon NAS that often means Fernley; around the Reno/Carson MHA it’s Dayton or Stagecoach; for Bridgeport it’s usually Gardnerville or Minden. The move is simple: pair the duty-station BAH you’ll actually receive with a nearby market where your monthly budget fits a three-bed today and the long-term path makes sense; solid demand, reasonable maintenance, and a rent you could live with if you turned the home into an investment later. If you’re going to add miles, make them count toward equity and future rental viability, not just survival.

If you’re single, could househacking bridge the gap?

Househacking, renting out a room or a unit while you live in the property, can make BAH go further without sacrificing location. For renters, that might look like a two-bed apartment with a vetted roommate. For buyers, it can be a townhome with a rentable bedroom or, when eligible, a small multi-unit where you live in one unit and offset the payment with the others. You could even take this a step further investment-wise with Joint VA loans supporting two like-minded servicemembers with a long-term goal in mind. The key is to stay inside the lines: confirm lease terms, local rules, and lender/occupancy requirements first, then run the numbers against realistic utility costs so you aren’t counting every dollar of BAH as “rent.”

The bottom line is that the increase is real and so is the squeeze. When the anchor doesn’t match the market, the fix is strategy, not stress: use the BAH you’re paid from, be honest about utilities, widen the search to stretch towns if you’re buying, or use smart househacking if you’re single or even an investment driven family. That’s how you get a home that works today and a plan that still works at your next set of orders.

Check your current BAH by duty station and rank here:

https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/

Want more ideas on where your housing allowance goes furthest?

Read: Maximizing your BAH in Northern Nevada's Housing Market