The allowance math · Interactive
Two numbers a lender will hand you. Only one of them pays for itself.
Your approval is the largest loan a bank will make. Your housing allowance is the largest payment that covers itself. Shop off the second number, decide on purpose how far past it you will go, and the first payment will never surprise you.
By Maren Holt · Estimates only · Not affiliated with the Department of Defense
How to read it
01
The full payment includes taxes, insurance, and HOA. Lenders often quote principal and interest alone. The difference is real money every month.
02
Being over your allowance is fine when it is a plan: a second income with a confirmed start date, a long hold, a neighborhood worth the stretch. The accidental version is the one that squeezes for two years.
03
Your next set of orders is part of the math. Ask what this house rents for before you buy it, in case the exit plan becomes renting it out.
At that price the full monthly payment, taxes and insurance included, equals your allowance of $2,450.
Estimates only. Not a preapproval, not a rate quote, not financial advice. Not affiliated with the Department of Defense. Verify your allowance at the official DoD BAH calculator and confirm loan terms with your lender.
Every $25,000 above that adds about $182 a month beyond your allowance.
Estimates only. Not a preapproval, not a rate quote, not financial advice. Not affiliated with the Department of Defense. Verify your allowance at the official DoD BAH calculator and confirm loan terms with your lender.