Service members will see a 4.2% average increase in their basic allowance for housing in 2026 — a smaller boost than the 5.4% increase they received in 2024 and 2025. 

But the actual increases military households will receive will vary depending largely on where they are stationed and their pay grades. While the increase is higher in some areas, the rates decrease in several areas, including Phoenix, Arizona, and Brownsville, Texas. Service members stationed in areas where rates go down are protected and get to keep their existing BAH. 

Look up your 2026 BAH rate here.

The Defense Department calculates the annual rates based on surveys of rental costs and utilities in each market. Data sources include Census Bureau surveys, the Bureau of Labor Statistics’ Consumer Price Index, commercial subscription rental cost databases, major online rental listing websites, and input from the services and local installation housing offices.

The calculation of the allowance is built to cover approximately 95% of average costs for an off-base housing and utilities, leaving roughly a 5% out-of-pocket expense for service members. In 2026, these amounts range from $93 to $212. 

Since the annual rates are based on 2025 data, they may not fully reflect rapid increases in actual rental costs.

The new housing allowance rates will take effect Jan. 1, 2026.

The department estimates it will pay $29.9 billion in housing allowances to approximately one million service members in 2026.

Basic Allowance for Housing is one of the largest components of cash compensation for service members, second only to basic pay. The fiscal 2026 defense policy bill, passed by the House on Wednesday, requires the Defense Department to “conduct a study to improve the calculation of BAH to ensure it keeps up with rising rental costs.” The bill also extends the Defense Department’s authority to issue temporary increases to BAH for one more year in areas hit by disasters or where housing costs differ from current rates by more than 20%.

The 2026 BAH increase comes as service members are also poised to receive a pay raise — the legislation approved a 3.8% increase in basic pay for service members. The must-pass legislation now heads to the Senate. The bill will then go to President Donald Trump for his signature. 

In 2023, BAH rates went up an average of 12.1% after housing costs had spiked the previous year.

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