For military service members stationed at Fort Bragg, NC, Basic Allowance for Housing (BAH) is a critical factor in determining where to live. Whether you’re considering on-post housing or looking for off-post rental or homeownership options, understanding how BAH works and how to budget appropriately can help you make informed decisions.
This guide will break down what BAH covers, compare on-post and off-post housing options, and provide a calculation method to determine a realistic price range for housing based on your BAH.
1. What is BAH and How Does It Work?
Basic Allowance for Housing (BAH) is a monthly housing stipend provided to service members who live off base. The amount varies based on three factors:
Rank (Pay Grade) – Higher ranks receive more BAH.
Dependent Status – Soldiers with dependents receive a higher BAH rate than those without.
Duty Station Location – BAH rates adjust annually based on the local housing market.
For the most up-to-date BAH rates, service members can visit the Defense Travel Management Office (DTMO) BAH Calculator at www.defensetravel.dod.mil.
What Does BAH Cover?
BAH is designed to cover the cost of:
Rent or mortgage payments
Utilities (electricity, water, trash)
Internet & basic home expenses
However, the actual cost of living may vary, and some service members find that BAH does not fully cover all housing-related costs, especially when factoring in security deposits, pet fees, or high utility bills. That’s why proper budgeting is essential before choosing a home.
2. On-Post vs. Off-Post Housing: Which is Right for You?
One of the biggest decisions Fort Bragg service members face is whether to live on-post or off-post. Here’s how BAH applies to both options:
On-Post Housing: Pros and Cons
On-post housing is managed by The Corvias Group, which operates the military housing at Fort Bragg. Service members who choose on-post housing forfeit their full BAH, meaning it goes directly to Corvias to cover rent and utilities.
Pros of On-Post Housing:
Close to work, reducing commute time
No need to worry about separate utility bills
Community atmosphere with other military families
Security and base amenities nearby
Cons of On-Post Housing:
Limited availability; long waitlists for certain home sizes
Less control over housing choice and style
You don’t pocket any leftover BAH savings
Off-Post Housing: Pros and Cons
Service members who choose to live off base receive their full BAH directly and can use it toward rent or a mortgage.
Pros of Off-Post Housing:
More flexibility in choosing where to live
Potential to save money if rent/mortgage is lower than BAH
More privacy and access to off-base amenities
Cons of Off-Post Housing:
May require additional budgeting for utilities and home maintenance
Commute times can vary depending on location
Higher upfront costs, such as security deposits or home down payments
Common Off-Base Living Areas Near Fort Bragg:
- Fayetteville, NC – The closest city with many rental and home-buying options.
- Spring Lake, NC – Smaller town just north of Fort Bragg with affordable housing.
- Raeford, NC – Suburban area with newer housing developments.
- Hope Mills, NC – Popular among families due to good schools and community feel.
3. How to Determine Your Housing Budget Using BAH
Before committing to a lease or home purchase, it’s important to break down your BAH and ensure your housing choice fits within your budget.
Step 1: Calculate How Much You Can Spend on Rent or a Mortgage
A good rule of thumb is that your housing cost should not exceed 30-40% of your gross income, which includes your BAH. However, since service members often receive other benefits (such as BAS for food), they may dedicate a higher percentage of BAH to housing.
Example BAH Calculation for a Soldier at Fort Bragg
- Assume a mid-rank E-5 with dependents receives $3,350/month in salary and $1,800/month in BAH (check the latest rates online). Total income $5,150.00.
- Target Rent/Mortgage Range:
- Conservative Budget (30%) → $5,150 x 0.30 = $1,545/month
- Standard Budget (40%) → $5,150 x 0.40 = $2,060/month
- Max Comfortable Budget (50%) → $1,800 x 0.50 = $2,575/month
Conclusion: An E-5 at Fort Bragg should ideally look for rentals in the $1,200–$1,600 range to account for other costs while staying within budget.
Step 2: Factor in Additional Expenses
When choosing a home, BAH doesn’t just cover rent—it also needs to account for:
- Utilities – Electricity, water, gas, trash, and internet ($150–$300/month)
- Renter’s or Homeowner’s Insurance – Highly recommended ($20–$60/month)
- Security Deposit & Move-In Fees – Many landlords require one month’s rent as a deposit
- Home Maintenance (if buying) – HOA fees, property taxes, repairs
Pro Tip: If renting, ask if utilities are included in the rent to better gauge affordability.
Step 3: Decide Between Renting or Buying
If you’re planning to stay at Fort Bragg for 3+ years, homeownership could be a smart investment, allowing you to build equity instead of paying rent.
Renting vs. Buying Considerations:
- Renting = More flexibility if your PCS orders change
- Buying = Potential long-term savings and VA Loan benefits
VA Loan Benefits for Homebuyers:
$0 Down Payment with VA Loan
No private mortgage insurance (PMI) required
Competitive interest rates
If you’re considering buying a home, work with a realtor experienced in military home purchases to explore your options.
Conclusion: Plan Ahead for Your Housing Needs
Finding housing at Fort Bragg starts with understanding your BAH and how to budget wisely for either on-post or off-post living. While on-post housing offers convenience, off-post options provide flexibility and potential cost savings. By factoring in additional expenses such as utilities and insurance, service members can make informed choices that align with their financial goals.
Call to Action: Need Help Finding a Home?
At The Barge Group, we specialize in helping service members and military families navigate housing at Fort Bragg. Whether you’re looking to rent, buy, or understand your BAH options better, our team is here to guide you. Contact us today for expert real estate advice and personalized housing assistance!