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FY 2003 Basic Allowance for Housing
Rates for Commissioned Officers with Dependents
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Below are the rates of tax-free housing allowance (Basic Allowance for Housing, or BAH) that are provided to commissioned officers (with dependents) who are authorized to reside off base at government expense.

For Fiscal Year 2003, housing rates increased by an average of 8 percent over 2002 rates. As a National Survey has shown that rental rates around military bases have risen an average of 4.2 percent during the past year, the average out-of-pocket housing expenses for military members will drop from 11.3 percent to 7.5 percent. This is part of a DOD plan to reduce average out-of-pocket expenses to zero by the year 2005. In 2000, average out-of-pocket costs were 20 percent, reduced to 15 percent with the raise for 2001, and 11.3 percent in 2002. Housing allowance rates are based upon rank, location, and whether or not a member has dependents.

The Department of Defense (DOD) employs Runzheimer International to collect the nation-wide housing cost data that they use to compute BAH. Additionally, DOD obtains current data from multiple sources, employing a "checks and balances" approach to ensure reliability and accuracy. Current residential vacancies, identified in local newspapers and real estate rental listings, are an important source of data. Vacancies are selected at random, and subjected to a screening process. Telephone interviews establish the availability and exact location of each unit sampled. DOD has designed the sample to obtain a statistical confidence level of 95% or higher. DOD also contacts apartment and real estate management companies to identify units for rental pricing. It is not uncommon for DOD to consult real estate professionals in a locality to obtain confirmation and additional sources of data. Where available, DOD contacts fort/post/base housing referral offices, to tap local military expertise and gain insights into the local concerns of military. Finally, DoD and the Services conduct on-site evaluations at various locations to confirm and ensure reliability and accuracy of the cost data.

Arizona
Location O-1E O-2E O-3E O-1 O-2 O-3 O-4 O-5 O-6 O-7
PHOENIX, AZ 1042 1113 1166 928 990 1121 1239 1332 1343 1359
FORT HUACHUCA, AZ 896 923 972 806 871 926 1029 1101 1110 1123
DAVIS-MONTHAN AFB, AZ 1077 1123 1202 905 1034 1127 1292 1408 1420 1436
YUMA, AZ 1041 1098 1145 855 987 1104 1193 1255 1265 1280

Data courtesy of Department of Defense
For locations not listed above, visit the DOD BAH Interactive Database

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