BAH Calculator 2026 - Basic Allowance for Housing Rates
Calculate your 2026 Basic Allowance for Housing (BAH) based on duty station location, pay grade, and dependency status. Official DoD rates with a 4.2% increase for 2026. Essential tool for active duty military personnel, reservists, and National Guard members.
🎖️ 2026 BAH Rate Increase: 4.2%
The Department of Defense announced a 4.2% national average increase in BAH rates for 2026, effective January 1, 2026. This adjustment reflects rising housing costs across military housing markets. Total BAH spending estimated at $29.9 billion for approximately 1 million service members in 2026.
📍 What is BAH?
Basic Allowance for Housing (BAH) is a tax-free monthly stipend provided to U.S. military service members to offset housing costs when government quarters are not provided. BAH varies by three factors:
• Duty Station Location: Geographic area and local housing market costs
• Pay Grade: Rank from E-1 through O-10
• Dependency Status: With or without dependents
• Tax-Free Benefit: BAH is not subject to federal or state income tax
2026 BAH Calculator
Your 2026 BAH Calculation
What is Basic Allowance for Housing (BAH)?
Basic Allowance for Housing (BAH) is a tax-free monthly stipend paid to U.S. military service members to compensate for housing expenses when government quarters are not provided. Established under Title 37, U.S. Code, Section 403, BAH is designed to provide equitable housing compensation based on local civilian housing market costs within the 50 U.S. states.
BAH is not intended to cover 100% of housing costs but rather offset them, allowing service members freedom to choose housing that fits their budget and lifestyle. If your actual housing costs are less than your BAH rate, you keep the difference tax-free. Conversely, if costs exceed your BAH, you pay the difference out of pocket.
How BAH Rates Are Calculated
The Department of Defense calculates BAH rates annually using a comprehensive methodology that evaluates over 300 Military Housing Areas (MHAs) across the United States. The calculation process involves data collection, analysis, and rate-setting based on multiple factors.
BAH Calculation Components:
Where each component is location-specific
Data Collection Process
Annual BAH Survey Methodology:
• Housing Market Data: DoD collects rental price data from over 300 markets annually
• Median Rent Analysis: Survey captures median prices for different housing types appropriate to pay grade
• Utility Costs: Average utility expenses (electricity, gas, water) for each market
• Renter's Insurance: Typical annual renter's insurance premiums
• Local Verification: Data verified with real estate professionals, military housing offices, and local command
• Out-of-Pocket Cap: DoD policy targets member's out-of-pocket expenses at approximately 5% of basic pay for housing
Three Key Factors Determining Your BAH
1. Duty Station Location (Military Housing Area)
Your duty station ZIP code determines which Military Housing Area (MHA) applies to your BAH calculation. High-cost metropolitan areas like San Francisco, New York, San Diego, and Washington D.C. have significantly higher BAH rates than rural or lower-cost areas. The DoD recognizes that housing markets vary dramatically across the country.
2. Pay Grade (Rank)
Higher-ranking service members receive higher BAH rates because they're expected to maintain housing appropriate to their grade. An O-6 (Colonel/Captain) receives significantly more BAH than an E-3 (Private First Class/Seaman/Airman First Class) in the same location.
Pay Grade Impact on Housing Type:
Housing profiles guide appropriate housing for each pay grade
3. Dependency Status
Service members with dependents receive substantially higher BAH rates than those without, regardless of the number of dependents. A service member with one child receives the same BAH rate as one with five children—the distinction is binary: with or without dependents.
| Dependency Status | Qualifies As | BAH Impact |
|---|---|---|
| With Dependents | Spouse, children, or qualifying dependents | Higher rate (typically 20-40% more) |
| Without Dependents | Single with no qualified dependents | Base rate for pay grade and location |
2026 BAH Rate Changes
National Average BAH Increase: 4.2% for 2026
Effective January 1, 2026, BAH rates increased an average of 4.2% nationally for both service members with and without dependents. This adjustment reflects:
• Rising rental housing costs across most military markets
• Increased utility expenses from inflation
• Regional variations in housing demand
• Continued housing market pressures post-pandemic
Total 2026 BAH Budget: $29.9 billion for approximately 1 million service members
Individual Variation: While the national average is 4.2%, specific locations may see increases ranging from 1% to 8% depending on local market conditions
Sample 2026 BAH Rates by Location
| Location | Pay Grade | Without Deps | With Deps | 2026 Change |
|---|---|---|---|---|
| San Diego, CA | E-4 | $2,595 | $3,075 | +5.1% |
| San Diego, CA | E-7 | $3,111 | $3,636 | +5.0% |
| San Diego, CA | O-3 | $3,357 | $3,942 | +4.9% |
| Norfolk, VA | E-4 | $1,641 | $1,941 | +3.8% |
| Norfolk, VA | E-7 | $1,968 | $2,283 | +3.7% |
| Norfolk, VA | O-3 | $2,127 | $2,469 | +3.6% |
| JBLM, WA | E-4 | $1,959 | $2,313 | +4.5% |
| JBLM, WA | E-7 | $2,349 | $2,730 | +4.4% |
| Fort Liberty, NC | E-4 | $1,299 | $1,536 | +3.2% |
| Fort Liberty, NC | E-7 | $1,557 | $1,806 | +3.1% |
| Pearl Harbor, HI | E-4 | $2,553 | $3,027 | +6.2% |
| Pearl Harbor, HI | O-3 | $3,291 | $3,858 | +6.0% |
Sample rates for illustration. Actual rates vary by specific ZIP code within each military housing area.
BAH Rate Protection
One of the most valuable features of BAH is individual rate protection, which prevents service members from receiving a lower BAH rate than the previous year as long as their eligibility status remains unchanged. This protection ensures members who have signed leases or made financial commitments aren't penalized when local housing costs decrease.
BAH Rate Protection Formula:
You receive the higher of the two rates as long as status is unchanged
When Rate Protection Applies
Rate Protection Continues When:
• You remain at the same duty station with unchanged status
• Local BAH rates decrease but your pay grade and dependency status stay the same
• You receive promotions (you get the higher of protected rate or new rate)
• Annual rate adjustments occur without changes to your situation
When Rate Protection Ends
⚠️ Rate Protection Terminates When:
• PCS (Permanent Change of Station): Moving to a new duty station
• Dependency Status Changes: Marriage, divorce, birth, or loss of dependents
• Pay Grade Decrease: Demotion (rare but possible)
• Voluntary BAH Termination: Moving into government quarters
After any of these changes, you receive the current published BAH rate for your new circumstances.
BAH vs. BAH-DIFF vs. OHA
The military provides different housing allowances depending on your situation and location. Understanding the differences helps ensure you receive the correct entitlement.
| Allowance Type | Who Receives It | Payment Basis | Tax Status |
|---|---|---|---|
| BAH (Basic Allowance for Housing) | Service members in the U.S. without government quarters | Published rates based on location, grade, dependents | Tax-free |
| BAH-DIFF (BAH Differential) | Single members in barracks paying child support | Difference between with/without dependent rates | Tax-free |
| OHA (Overseas Housing Allowance) | Service members stationed overseas (outside U.S.) | Actual rent reimbursement + utilities (with caps) | Tax-free |
| Non-Locality BAH | Members in transit, special duty, deployed | Reduced flat rate not location-specific | Tax-free |
BAH-DIFF Explained
BAH-DIFF (BAH Differential) is a special housing allowance for service members assigned to single-type quarters (barracks/dorms) who pay child support. The member receives the difference between the with-dependents and without-dependents BAH rates, but only if child support payments equal or exceed the BAH-DIFF amount.
BAH-DIFF Calculation:
Only paid if child support ≥ BAH-DIFF amount
Who is Eligible for BAH?
Automatic BAH Eligibility
Service Members Automatically Eligible:
• With Dependents: All service members with authorized dependents receive BAH regardless of quarters availability
• Permanent Duty: Members assigned to permanent duty stations without adequate government quarters
• Privatized Housing Residents: Those living in privatized military housing (BAH paid directly to housing partner)
• Permissive Orders: Members authorized to live off-base by command
• Commissioned Officers: Generally not required to live on base
• Senior Enlisted: E-6 and above typically receive BAH
Conditional BAH Eligibility
May Receive BAH If:
• Junior enlisted (E-1 through E-5 without dependents) when barracks are full
• Assigned to recruiting duty or other special assignments
• Government quarters are inadequate or unavailable
• Granted permission to live off-base by command authorization
• Geographic bachelor status (dependents remain at previous duty station)
Not Eligible for BAH
- Junior enlisted living in available barracks/dorms - Service members occupying government family housing - Members receiving OHA (Overseas Housing Allowance) - During certain training periods - When adequate government quarters are provided and occupiedTax Benefits of BAH
One of the most significant advantages of BAH is its tax-free status. Unlike basic pay, BAH is not subject to federal income tax, state income tax, or Social Security/Medicare taxes (FICA). This tax advantage substantially increases the effective value of your housing allowance.
Effective Value of Tax-Free BAH:
BAH's value increases with your tax bracket
Tax-Free BAH Example:
An E-6 in San Diego receives $3,111/month BAH without dependents ($37,332 annually)
If taxed at 22% federal + 7.65% FICA + 9.3% CA state = 38.95% total:
Taxable equivalent would be: $37,332 / (1 - 0.3895) = $61,154
Tax savings: $61,154 - $37,332 = $23,822 annually
The tax-free status effectively increases BAH value by 64% for this service member!
Using BAH for Home Purchase
Many service members use their BAH to purchase homes rather than rent, building equity and long-term wealth. VA home loans combined with BAH create powerful homeownership opportunities for military families.
Advantages of Buying vs. Renting
Benefits of Buying
• Equity Building: Monthly payments build ownership
• Tax Deductions: Mortgage interest and property taxes
• Long-term Wealth: Property appreciation over time
• VA Loan Benefits: No down payment, no PMI, competitive rates
• Rental Income: Rent out during PCS, keep property as investment
Considerations Before Buying
• PCS Risk: May need to sell or become landlord
• Market Volatility: Housing values can decrease
• Maintenance Costs: Owner responsible for all repairs
• Closing Costs: Upfront expenses even with VA loan
• Time Commitment: Stay 3-5+ years for financial advantage
VA Loan Benefits
VA Home Loan Advantages (2026):
• No Down Payment: 0% down on loans up to conforming limits
• No PMI: No private mortgage insurance required
• Competitive Rates: Typically 0.25%-0.50% below conventional loans
• VA Funding Fee: 2.15% for first-time use (can be financed), waived for disabled veterans
• Lenient Credit: More flexible credit requirements than conventional loans
• Seller Concessions: Seller can pay up to 4% toward closing costs
• No Prepayment Penalty: Pay off early without fees
• Lifetime Benefit: Reusable after selling previous VA loan property
BAH and Military Spouse Employment
Military spouses face unique employment challenges due to frequent relocations. BAH provides housing stability that can support spouse career development and education pursuits.
Military Spouse Employment Support:
• Remote Work: BAH covers housing costs while spouse works remotely
• Licensure Portability: Many states now offer expedited license transfers for military spouses
• My Career Advancement Account (MyCAA): $4,000 education assistance for eligible spouses
• Employment Preference: Federal hiring preference for military spouses
• Entrepreneurship: BAH-covered housing enables home-based businesses
