The Basic Allowance for Housing (BAH) rate will increase an average of $41 per month nationwide Jan. 1, even as the calculation used to determine it shrinks the amount of housing costs it is designed to cover. BAH is recalculated annually using a snapshot of housing costs in each region. For 2017, the rate is designed to cover only 97 percent of troops' housing costs — a one percent drop from last year and the third step in a congressional plan to reduce rates by five percent over five years. The rate also is no longer designed to cover the cost of rental insurance, a change that started in 2015. For more details, See this Military.com news article and this Military Advantage post. To see the new rates, see the Military.com BAH section.