Rent has Cooled in San Diego County, But Navy Housing Allowance will Increase in 2025

Although the cost of rent is down in San Diego County, U.S. Navy sailors stationed in San Diego will see an average $124 monthly increase in their housing allowances next year, the Department of Defense announced.

The Navy’s Basic Allowance for Housing (BAH) will increase by an average of 5.4% nationwide, the DOD said. The allowance is calculated based on housing costs for civilians of comparable incomes, based on median rental and utility costs.

Meanwhile, the average rent in San Diego dropped by about 3%, from $2,266 in spring 2023 to $2,189 in spring 2024, according to the Southern California Rental Housing Association.

The highest increase, at $183 per month, was given to officers with dependents ranking O6 and above. That same amount was granted to O1 officers without dependents.

The lowest increase came to junior sailors ranked E1-E4 without dependents, whose housing allowance will increase by $64 per month. However, those sailors would generally live in barracks housing and therefore would not receive BAH. Junior sailors with dependents (a spouse or children) are eligible to leave the barracks and receive housing allowance.

Last year, junior sailors were the only to see a decrease in BAH, and for those with dependents, this increase still leaves E1-E4 sailors at $9 below their 2023 BAH rates.

The government will pay an estimated $29.2 billion in BAH to approximately one million service members in 2025.

Navy personnel can opt to live in military housing, which is privately operated by Liberty Military Housing. Most – but not all – communities operated by LMH take full BAH in exchange for rent and utilities, and the company has communities throughout San Diego County for enlisted sailors and officers of all ranks.

Financially, living in base housing can be a better deal. For example, to live in Silver Strand II, a community of 2- and 3-bedroom duplexes for E1 to E6 sailors, a service member would forego his or her entire housing allowance in exchange for rent and utilities. But the median rent for a 3-bedroom unit in Coronado is $6,000.

Coronado is an expensive city, and therefore, is a bit of an anomaly: A more fair example, perhaps, is that a 3-bedroom unit in La Mesa Park, a community for E1 to E6 sailors, also takes full BAH. Rent for a comparable unit in the same area costs an average of $3700, and electric bills alone in San Diego County average $210 for a 3-bedroom unit. So, an E5 sailor would likely be saving money by living in military housing.

However, some military personnel have complained that the housing is poorly maintained, although LMH says they respond to all maintenance requests and that their housing is a good deal for most service members compared to renting in the economy.

Housing costs have been a chief concern in San Diego County, but have cooled in recent months. California’s Tenant Protection Act restricts how much landlords can increase their existing tenants’ rent each year, capping it at 5% plus the cost of living (or 10% maximum, whichever is lowest). In August, the U.S. Bureau of Labor Statistics released a cost of living adjustment that capped rent increases in San Diego at 8.6%, a decrease from the 10% max the year prior.

The Navy’s 2025 BAH rates, for sailors with and without dependents, are outlined below.

BAH With Dependents

BAH Without Dependents

Megan Kitt is married to an active duty service member.