WASHINGTON, D.C. (WWTI) — The basic housing allowance is set to increase at the start of the new year, according to a press release from the Department of Defense.

Officials confirmed that BAH rates will increase by an average of 12.1% for 2023.

The DoD said that specific amounts vary by grade and dependency status. Increases range from an additional $82 to $184 per month.

According to the DoD, this increase was expected as Secretary of Defense Lloyd J. Austin III announced new rates in September. Specifically, in a memorandum that listed ways to support married servicemembers, their families and single service members.

This addressed the over 20% spike in rental housing costs over previous BAH rates. An automatic increase to BAH took place in October 2022, which was directed by Secretary Austin.

However, this increase will expire on December 30, 2022. The DoD said that those who received the temporary rate increases will switch to the new BAH rates in the new year.

BAH rates are based on the median current market rent and average utilities, including electricity, heat, water and sewer.

Specific rates are then calculated for each pay grade, both with and without dependents based on the housing choices of civilians with comparable incomes.