The U.S. Department of War has announced new basic allowance for housing (BAH) rates for the year 2026. The updated rates reflect an average increase of 4.2 percent, set to benefit nearly one million service members. Effective January 1, 2026, these changes aim to address the rising housing costs faced by military personnel.
Key Changes in the 2026 BAH Rates
The total BAH allocation is projected to be approximately $29.9 billion. This funding will assist service members in managing their housing expenses across various regions.
Data Collection Processes
To determine the new housing rates, the Department of War gathers extensive rental cost data from 299 military housing areas throughout the United States, including Alaska and Hawaii. The housing rate-setting process utilizes diverse data sources, including:
- U.S. Census Bureau survey data
- Bureau of Labor Statistics Consumer Price Index
- Commercial rental cost databases
- Online rental listing platforms
- Inputs from local military housing offices
Regional Adjustments and Profiles
While the average BAH rates are increasing, local rental markets may vary. The 2026 rates reflect these geographic market conditions. The calculation for housing costs accounts for:
- Median market rents
- Utilities such as electricity, heat, water, and sewer
Costs are computed for six housing profiles based on dwelling type and number of bedrooms within each military area. Additionally, BAH rates are tailored for each pay grade, considering whether service members have dependents or not.
Member Cost-Sharing and Rate Protection
The 2026 rates continue a cost-sharing element, maintaining a five percent contribution toward the national average housing cost by pay grade. Service members can expect monthly amounts ranging from $93 to $212, depending on their specific situation.
An important feature of the BAH program is individual rate protection. This means that despite any fluctuations in local housing costs, service members who fulfill eligibility criteria at a location will not see a decrease in their housing allowance. This policy protects those with long-term leases or contracts from potential financial penalties.
For further details on the 2026 basic allowance for housing rates, including a breakdown of rates and components, visit El-Balad’s resources or utilize the BAH calculator for precise estimations.
