What Is BAH and How Does It Work? A Quick Answer For Men & Women In Uniform and Veterans! BAH explained: rates, eligibility, and how it's calculated in plain terms — Basic Allowance for Housing (BAH) is a tax-free monthly payment the Department of Defense gives eligible service members to help cover civilian housing costs when government quarters aren't provided. Here's … [Read more...] about BAH Explained: Rates, Eligibility & How It’s Calculated (2026)