diff --git a/salt/modules/ssh.py b/salt/modules/ssh.py
index ac45bd2ca2..1e4a9aae27 100644
--- a/salt/modules/ssh.py
+++ b/salt/modules/ssh.py
@@ -78,6 +78,31 @@ def _format_auth_line(key, enc, comment, options):
     return line
 
 
+def _expand_authorized_keys_path(path, user, home):
+    '''
+    Expand the AuthorizedKeysFile expression. Defined in man sshd_config(5)
+    '''
+    converted_object = []
+    had_escape = False
+    for char in path:
+        if had_escape:
+            had_escape = False
+            if char == '%':
+                converted_object.append('%')
+            elif char == 'u':
+                converted_object.append(user)
+            elif char == 'h':
+                converted_object.append(home)
+            else:
+                raise CommandExecutionError('Unknown token character ' + char)
+            continue
+        if char == '%':
+            had_escape = True
+    if had_escape:
+        raise CommandExecutionError("Last character can't be scape character")
+    return "".join(converted_object)
+
+
 def _get_config_file(user, config):
     '''
     Get absolute path to a user's ssh_config.
@@ -85,8 +110,10 @@ def _get_config_file(user, config):
     uinfo = __salt__['user.info'](user)
     if not uinfo:
         raise CommandExecutionError('User {0!r} does not exist'.format(user))
+    home = uinfo['home']
     if not os.path.isabs(config):
-        config = os.path.join(uinfo['home'], config)
+        config = os.path.join(home, config)
+    config = _expand_authorized_keys_path(config, user, home)
     return config
 
 
diff --git a/salt/states/ssh_auth.py b/salt/states/ssh_auth.py
index 0fa1b4aeef..842149812c 100644
--- a/salt/states/ssh_auth.py
+++ b/salt/states/ssh_auth.py
@@ -29,6 +29,7 @@ to use a YAML 'explicit key', as demonstrated in the second example below.
       ssh_auth.present:
         - user: root
         - source: salt://ssh_keys/thatch.id_rsa.pub
+        - config: %h/.ssh/authorized_keys
 
     sshkeys:
       ssh_auth.present:
@@ -239,7 +240,8 @@ def present(
 
     config
         The location of the authorized keys file relative to the user's home
-        directory, defaults to ".ssh/authorized_keys"
+        directory, defaults to ".ssh/authorized_keys". Token expansion %u and
+        %h for username and home path supported.
     '''
     ret = {'name': name,
            'changes': {},
@@ -382,7 +384,9 @@ def absent(name,
 
     config
         The location of the authorized keys file relative to the user's home
-        directory, defaults to ".ssh/authorized_keys"
+        directory, defaults to ".ssh/authorized_keys". Token expansion %u and
+        %h for username and home path supported.
+
     '''
     ret = {'name': name,
            'changes': {},
diff --git a/tests/unit/modules/ssh_test.py b/tests/unit/modules/ssh_test.py
new file mode 100644
index 0000000000..086f8efd04
--- /dev/null
+++ b/tests/unit/modules/ssh_test.py
@@ -0,0 +1,34 @@
+# -*- coding: utf-8 -*-
+
+# import Python Libs
+from __future__ import absolute_import
+
+# Import Salt Testing Libs
+from salttesting import TestCase
+from salttesting.helpers import ensure_in_syspath
+
+# Import Salt Libs
+ensure_in_syspath('../../')
+from salt.modules import ssh
+
+
+class SSHAuthKeyPathTestCase(TestCase):
+    '''
+    TestCase for salt.modules.ssh module's ssh AuthorizedKeysFile path
+    expansion
+    '''
+    def test_expand_user_token(self):
+        '''
+        Test if the %u token is correctly expanded
+        '''
+        output = ssh._expand_authorized_keys_path('/home/%u', 'user',
+                '/home/user')
+        self.assertEqual(output, '/home/user')
+
+        output = ssh._expand_authorized_keys_path('/home/%h', 'user',
+                '/home/user')
+        self.assertEqual(output, '/home//home/user')
+
+        output = ssh._expand_authorized_keys_path('/srv/%h/aaa/%u%%', 'user', 
+                '/home/user')
+        self.assertEqual(output, '/srv//home/user/aaa/user%')