Does The GI Bill Pay For Housing? A Complete Guide

The GI Bill is one of the most valuable benefits available to military servicemembers and veterans pursuing higher education or job training. A major component of the GI Bill is the monthly housing allowance, which helps recipients cover housing costs while going to school. In this comprehensive guide, we’ll explain exactly how the housing allowance works, who qualifies for it, and how much you can expect to receive.

What is the GI Bill Housing Allowance?

The housing allowance is a monthly payment made to GI Bill users to help cover housing expenses like rent, mortgage payments, and utilities. It is intended to help veterans and servicemembers focus on their education instead of worrying about how they will pay for a place to live.

The amount of the housing allowance is determined based on the Basic Allowance for Housing (BAH) rates for an E-5 with dependents in the zip code of your school. The BAH rates are set annually by the Department of Defense to reflect average housing costs in each area.

The GI Bill housing allowance is not paid automatically to every recipient. Specific eligibility requirements must be met, which we’ll cover next.

Who Qualifies for the GI Bill Housing Allowance?

To receive the monthly housing payment, you must meet all of the following criteria:

• Using Post-9/11 GI Bill benefits at the 50% rate or higher
• Attending in-person classes, not exclusively online
• Attending school at greater than half-time enrollment
• Not on active duty
• Not using transferred benefits (from a spouse on active duty)

In other words, the housing allowance is for veterans and servicemembers attending brick-and-mortar schools as their primary form of education. It is not paid for online-only programs.

The amount of housing allowance you receive also depends on your rate of pursuit – meaning how many credits you are enrolled in We’ll explain more about pursuit rates next

GI Bill Housing Allowance Rates Based on Enrollment

The monthly housing payment is prorated based on your enrollment level at school. The basic pursuit rate levels are:

• Full time – Receives 100% of the housing allowance
• 3/4 time – Receives 75% of the housing allowance
• 1/2 time – Receives 50% of the housing allowance
• Less than 1/2 time – Not eligible for housing allowance

To determine your enrollment percentage divide your credits or hours by the minimum full-time standard at your school. For example, if full-time is 12 credits and you’re taking 9 credits, your rate of pursuit would be 75% (9/12 credits).

In addition to these standard pursuit levels, there are a few other potential rates:

• Tuition and Fees Only – If you’re enrolled at less than half time, you can receive money for tuition and fees but no housing allowance.

• Active Duty Rate – If you are on active duty and using GI Bill benefits, you are not eligible for the housing allowance because your military salary covers housing costs.

• Transferred Benefits Rate – If you are using transferred GI Bill benefits from a spouse, you will not receive the housing allowance because their active duty salary already covers housing.

How Much is the GI Bill Housing Allowance?

The amount of housing allowance you can receive varies depending on two main factors:

1. The BAH rates in your area
2. Your rate of pursuit (enrollment level)

To calculate your potential payment, first look up the BAH rates for an E-5 with dependents in your zip code. You can use the Defense Department BAH Calculator for this.

For example, if you live in Phoenix, AZ, the 2023 BAH rate for an E-5 is $2,079.

Then multiply this rate by your enrollment percentage. For example:

• Full time student would receive 100% of $2,079 = $2,079
• 3/4 time student would get 75% of $2,079 = $1,559
• 1/2 time student would get 50% of $2,079 = $1,040

The Post-9/11 GI Bill will pay this housing allowance directly to the student at the end of each month for the previous month’s enrollment.

Keep in mind the housing allowance is prorated by days in a month. So if your semester starts or ends in the middle of a month, that month’s payment will be lower.

Additional Housing Allowance Situations

A few other unique housing allowance situations include:

• Active Duty Spouse – If you are using transferred GI Bill benefits while your spouse is on active duty, you are not eligible for the monthly housing payment. This avoids ‘double-dipping’ on housing allowances.

• Overseas Schools – If you attend school outside the United States, your housing allowance is based on the national average BAH instead of an individual zip code rate.

• Online Schools – For online programs, your housing allowance is equal to 50% of the national average BAH. So attending online limits the housing payment.

• Study Abroad – If you are enrolled in a study abroad program through an approved school for a semester, you can receive a housing allowance based on the BAH rate for that foreign location.

• In-State Tuition – Students using the GI Bill can qualify for in-state tuition at public colleges and universities without meeting normal residency requirements. This can result in huge cost savings on top of the housing allowance.

Applying for GI Bill Housing Allowance

You do not have to apply separately for the housing allowance. It will automatically be paid by the VA based on your GI Bill enrollment status and the programs you are attending.

However, you should still apply for your GI Bill benefits in advance through the Vets.gov website or by completing VA Form 22-1990.

The school you are attending will also need to submit enrollment information to the VA through a process called VA Form 22-1999.

As long as you maintain at least half-time enrollment, submit schedule changes, and meet the eligibility criteria, the Post-9/11 GI Bill housing allowance should be paid seamlessly each month you are in school.

Finding Housing and Budgeting with BAH

The housing allowance gives you flexibility in finding housing that meets your needs, whether that is on-campus, off-campus, or shared living.

You can use the BAH rate in your area to budget and determine how much you can afford to pay for rent and utilities. As an E-5 with dependents BAH allowance, you should have a sizable budget to find good housing near campus.

Off-campus housing can often save money compared to expensive on-campus room and board fees. And being able to apply in-state tuition rates plus the MHA provides great value.

Having the housing allowance removes much of the financial stress of attending college as a veteran or military family. You can focus on your education knowing that a big chunk of your living expenses are covered.

How Long is The Housing Allowance Paid?

The GI Bill provides 36 months of benefits, including housing allowances. This is generally enough time to complete an undergraduate bachelor’s degree.

Your months may go quicker if you are attending school year-round or transfer schools and repeat classes. Try to maximize your earned credits at each school.

If your benefits will run out before you complete your degree, you may be able to extend through the VET TEC program or Vocational Rehabilitation.

The housing allowance is only paid during months when you are enrolled in school and during scheduled school breaks. If you take a semester off, payments will stop until classes resume.

Impact on Other Benefits and Taxes

The GI Bill housing allowance does not impact most other military or VA benefits. However, it is considered taxable income.

You do not have to pay Social Security or Medicare taxes on the allowance, but federal and state income tax will apply. Be sure to factor this in when budgeting and making housing payments.

The housing allowance will also be used to calculate income levels for programs like SNAP food assistance and HUD housing programs. The allowance may make you ineligible for other income-based benefits.

Finding a Place to Live

As a student veteran with a steady housing allowance income, you should be an attractive tenant for rental properties. Be sure to have copies of your VA documentation and GI Bill paperwork ready to show income verification.

Some tips for using your housing allowance to find good, affordable rentals include:

• Check out listings near campus so you can walk or bike to class
• Search for