The boost will cut to zero the amount of money a typical service member has to pay out-of-pocket for housing, based on average housing costs. In 2000, service members who had to live off base paid about 20 percent of their housing costs out of pocket.

The new housing allowance considers median current market rent, average utilities and average renters insurance for six kinds of housing profiles -- apartment or house, with various numbers of bedrooms -- in each military housing area.

Officials said the new rates are calculated for each service member based on pay grade and considers whether that service member has dependents. The Pentagon estimates it will pay 910,000 service members who live off base a total of $12.3 billion for housing.

Troops who live on base are provided housing.

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