The average Basic Allowance for Housing (BAH) rates have actually dropped a bit for most (about 1.5%) for calendar year 2011. However, most servicemembers will not see the decrease. Under the current law, if rates go up, all military members will see the increase, but if rates go down, military members will receive the old (higher) rates until they receive an assignment to a new location.
Note: BAH amounts are determined by location, rank, and whether or not the member has dependents.
Between ranks, amounts differ because the higher the rank, the better the housing a member is authorized. Here are the charts that show what type of dwellings are used to determine BAH amounts for each rank.
There are specific rules which determine whether the military member is paid the housing rate for the location of his/her assignment, or the location of his/her dependents. This chart displays those basic rules.
BAH is an allowance, and is therefore not subject to income taxes.
2011 BAH rates for Military Members: