2025–2026 BAH Rates: How Much Housing Allowance Can You Get?

If you’re on active duty and facing another move, rising housing costs are likely top of mind. Your Basic Allowance for Housing (BAH) exists to ease that financial burden—and, with a little savvy planning, it can do more than just cover rent. In some cases, BAH can even help you build equity in a home of your own.

In this guide, we’ll explore the latest 2025 BAH rates, look ahead to potential 2026 increases, and share tips on effectively leveraging your housing benefit—especially if you’re considering a VA loan.

Key Takeaways

• Tax-Free Housing Benefit: BAH changes annually and is based on ZIP code, rank, and dependent status.
• Use a BAH Calculator: Easily check your current or future allowance before you get orders.
• Buying vs. Renting: Pair your BAH with a VA loan to invest in real estate—and pocket potential savings.
• Projected Increases: After a 5.4% rise in 2025, expect further upward trends in 2026, especially in high-cost areas.

What Is BAH—And Why It Matters

Basic Allowance for Housing (BAH) is a monthly, tax-free stipend designed to offset housing costs for service members living off base. The DoD adjusts BAH each year based on local rental market data.

Quick Facts:

• Location-Dependent: High-cost areas yield higher BAH.
• Pay Grade & Dependents: Both factors can boost your monthly rate.
• Keep the Difference: If rent is below your BAH, you can apply leftover funds to utilities or savings.

Pro Tip: Some service members use the difference between rent and BAH to pay down debt, build an emergency fund—or even supplement a home purchase with zero down using a VA loan.

2025–2026 BAH Rates: What’s New

For 2025, BAH rates rose by an average of 5.4%, reflecting surging rents nationwide. Below are some illustrative examples—and a look at projected 2026 figures:

Note: Official rates update every January. Always verify through the Defense Travel Management Office for the latest numbers.

How to Use a BAH Calculator (Step-by-Step)

1. Visit the Official BAH Calculator: Available on the DoD website.
2. Input Your Duty Station ZIP: Location is critical for accurate results.
3. Select Your Pay Grade: E-4 through O-5, etc.
4. Mark Dependent Status: If you have a spouse or children, you’ll get a higher allowance.
5. Review: Instantly see your monthly entitlement for housing.

Bonus: Check your BAH before receiving orders to better plan your next move or home purchase.

Factors That Affect Your BAH Rate

• ZIP Code: Rental costs fluctuate widely by region.
• Rank: Higher rank generally means a larger allowance.
• Dependency Status: Service members with dependents qualify for a higher rate.
• Rental Market Trends: Adjusted annually based on local averages.

Important: If you relocate mid-year, your BAH reflects the rate set on January 1 of that calendar year.

Why BAH Matters During PCS

A Permanent Change of Station (PCS) can bring enough stress without worrying about unexpected housing expenses. Knowing your BAH well in advance allows you to:

• Budget Wisely: Avoid out-of-pocket rent or mortgage costs.
• Plan for Family Needs: Ensure comfortable living arrangements.
• Decide on Renting vs. Buying: If you’re ready for homeownership, a VA loan can help you convert that BAH into equity.

Homebuying Tip: Platforms like reAlpha offer commission-free home buying, potentially saving you thousands on real estate fees—plus VA loans feature zero down payment.

Smart Ways to Maximize Your BAH

1. Buy Instead of Rent: With a VA loan, your monthly payment can build long-term wealth instead of going to a landlord.
2. Choose Locations Strategically: Compare BAH to local housing costs—opting for an area where your allowance comfortably covers or exceeds rent.
3. Calculate Early: Always run the numbers before you move to determine potential surpluses or shortfalls.
4. Leverage Future Resale: VA loans are assumable, meaning a future buyer can take over your lower-rate mortgage if you relocate.

BAH by Location: 2024 Snapshot (E-5)

Expect these figures to trend upward by 2025–2026, especially for high-cost-of-living regions.

Your Resource Toolkit

• Official BAH Calculator: Quick, accurate rate lookup by ZIP code.
• Be My Neighbor Mortgage: VA loan specialists for smooth military mortgage approvals.
• reAlpha: Commission-free platform leveraging AI to match you with suitable homes.
• VA Handbook 26-7: The ultimate guide for VA qualification details.

Final Thoughts: Don’t Leave Money on the Table

You serve, and you’ve earned these benefits. By understanding your Basic Allowance for Housing, you can plan moves more confidently, keep more of your paycheck, and potentially invest in a property that sets you up for financial success—both now and after your service.

Need assistance figuring out your next step?

• Be My Neighbor Mortgage, LLC (NMLS #1743790): VA loan experts.
• reAlpha: Helps you buy real estate commission-free and fast.

FAQ: Quick Answers on BAH

What is BAH Type 2?

Often called BAH-Diff, it’s for members who pay child support but don’t qualify for regular BAH based on dependent status.

Does BAH Cover Utilities?

Not specifically. BAH is designed to cover rent or mortgage payments, but any leftover can go toward utilities if your housing cost is low.

How Often Does BAH Change?

New rates release annually each January, based on local rent data.

Be My Neighbor Mortgage, LLC (NMLS #1743790) | Equal Housing Lender
This is not a commitment to lend. All loans subject to credit and underwriting approval. Rates and terms may change.