They pull all the BAH for 3 bedroom houses because that's what big Navy says an officer rates 3 bedroom place at a minimum. But, a 2NDLT and myself (prior enlisted) both give up all our BAH to be in the same 3 bedroom layout, even though those amounts are $400 apart. Or a 2NDLT and a Capt both rate the same 3 bedroom and give up all the BAH, even though those are vastly different. But, by accepting a place smaller than what we rate, we pay a market rate. What it comes down to for me is that my BAH is $2070, and I can find a really good 3 bedroom out in town if I'm going to give up my whole BAH, but a 2 bedroom is $995, which is really hard to beat. The difference between my BAH and rent would almost be like getting promoted early, as far as my budget goes.