BAH Rate Protection: What Happens When Rates Drop?

Every December, the DoD releases new BAH rates. Sometimes they go up, but sometimes—due to market corrections—they go down. If you see the rate for your zip code drop by $100, do you lose that money?

The Good News: Individual Rate Protection

Thanks to federal law, **your BAH will not decrease** as long as you maintain your eligibility. This is known as "Individual Rate Protection" or "grandfathering."

This ensures that service members who have already signed leases based on a higher rate are not suddenly unable to afford their rent.

Eligibility for Protection

You keep your higher rate as long as:

• You remain assigned to the same duty station.
• You do not have a reduction in pay grade (demotion).
• Your dependency status does not change (e.g., from With-Dependents to Without-Dependents).

When Do You Get the New Rate?

You will switch to the new (lower) rate ONLY if:

1. You PCS to a new location.
2. You accept a demotion.
3. Your status changes (e.g., divorce).

Conversely: If rates GO UP, you ALWAYS get the raise. Rate protection only stops your allowance from going down. It's a win-win safety net for your finances.