Below are the rates of tax-free housing allowance (Basic Allowance for Housing, or BAH) that are provided to officers (without dependents) who are authorized to reside off base at government expense in the state of MINNESOTA , for calendar year 2008.

In calendar year 2004, service members living "on the economy" paid an average of 3.5 percent of the housing costs out-of-pocket. That percentage dropped to zero in calendar year 2005, and has remained at zero ever since.


Housing allowance rates are based upon rank, location, and whether or not a member has dependents.

The Department of Defense (DOD) employs Runzheimer International to collect the nation-wide housing cost data that they use to compute BAH. Additionally, DOD obtains current data from multiple sources, employing a "checks and balances" approach to ensure reliability and accuracy. Current residential vacancies, identified in local newspapers and real estate rental listings, are an important source of data. Vacancies are selected at random, and subjected to a screening process. Telephone interviews establish the availability and exact location of each unit sampled. DOD has designed the sample to obtain a statistical confidence level of 95% or higher. DOD also contacts apartment and real estate management companies to identify units for rental pricing. It is not uncommon for DOD to consult real estate professionals in a locality to obtain confirmation and additional sources of data. Where available, DOD contacts fort/post/base housing referral offices, to tap local military expertise and gain insights into the local concerns of military.

Finally, DoD and the Services conduct on-site evaluations at various locations to confirm and ensure reliability and accuracy of the cost data.

For localities in the state of MINNESOTA not shown on the chart below, see the DOD BAH Database.

2008 MINNESOTA BAH Rates:

2008 BAH

Locality	OE-1	OE-2	OE-3	O-1	O-2	O-3	O-4	O-5	O-6	O-7
DULUTH, MN	1079	1142	1224	821	1030	1172	1295	1338	1403	1431
MINNEAPOLIS/ST PAUL, MN	1393	1481	1594	1062	1318	1522	1618	1632	1654	1687
SAINT CLOUD, MN	899	1037	1088	678	878	1078	1183	1272	1409	1437
ROCHESTER, MN	981	1022	1074	756	942	1041	1177	1245	1333	1360