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Joint Base Andrews-Naval Air Facility Washington

Cost of Living

Cost of Living in the National Capital Region is considerably higher than the U.S. average, particularly in terms of housing costs.

The FY-2022 National Defense Authorization Act was signed in December 2022 supporting the National Defense Strategy. One of the lines of effort from the 2022 NDAA that was implemented in January 2023 is to pay eligible service members with dependents a Basic Needs Allowance, a supplemental allowance to ensure they are not earning less than 130% of the poverty line based on their location and household size. If a household contains multiple service members eligible to receive BNA, only one allowance may be received, and the household service members must jointly elect which service member will receive the allowance.

DoDI 1341.15 Change 3 became effective on May 12, 2025. The federal poverty guidelines threshold was raised to 200% from 150% under previous policy to be in accordance with law changes brought forth by the 2023 NDAA.

The FY-2025 NDAA also:

  • Expanded eligibility for the Basic Needs Allowance to military households that earn up to 200% of the federal poverty guidelines
  • Authorized funding to support a 4.5% pay raise for military members and a 2% pay raise for Department of War civilian employees
  • Authorized a 10% pay raise for junior enlisted servicemembers in the grades of E1 through E-4, in addition to the 4.5% force-wide pay raise.

Average Cost of Living

It’s not surprising that Washington is such an attractive place to live. It almost goes without saying.

According to data from the U.S. Bureau of Economic Analysis, Washington, D.C. is low on the affordability scale. As of 2024, it ranks 49th on the list with a cost of living index score of 141.9. Only Hawaii, Massachusetts and California are more expensive.

Here’s how that breaks down for categories and their average annual per-capita cost in Washington, D.C.:

  • Housing and Utilities – $16, 481
  • Health Care – $13, 239
  • Food and Beverages (non-restaurant) – $7,500
  • Natural Gas and Energy Goods – $1532
  • All Other Personal Expenditures – $53,285

Average Housing Costs

  • $1,643 to $3,137 per month

Housing is often the highest single cost in people’s monthly budgets, and you definitely want to prepare for that expense if you’re going to live in the DMV. The typical home price in the D.C. metro area is $690,000, which is significantly higher than the median single-family existing-home sale price of $446,638.

Even for renters, the costs are pretty intense. Here’s how the median cost of housing breaks down on a monthly basis:

  • Mortgage cost: $3,062
  • Studio rent: $1,643
  • One-bedroom rent: $1,935
  • Two-bedroom rent: $1,966
  • Three-bedroom rent: $2,630
  • Four-bedroom rent: $2,884
  • Five-bedroom (or more) rent: $3,137
  • Gross rent: $1,904