Service members will see a 4.2% bump, on average, in their monthly Basic Allowance for Housing as of Jan. 1, defense officials announced Thursday.
The average increase for 2026 is lower than the 2025 average of 5.4%. Actual amounts can vary widely by military housing areas, and some service members may see a decrease in their monthly housing allowance. But in areas where there is a decrease, service members won’t be penalized. They’ll continue to receive the same amount they received in 2025 for as long as they are stationed there.
In their announcement, officials said they expect to pay an estimated $29.9 billion in housing allowances for about 1 million service members in 2026.
To set BAH rates each year, the Defense Department collects rental housing cost data for 299 military housing areas in the United States, including Alaska and Hawaii. They calculate rates for each pay grade, both with and without dependents, based on housing choices of civilians with comparable incomes.
In Norfolk, Virginia, for example, according to the DOD BAH calculator, an E-5 with dependents will receive $2,430 a month in BAH, an increase of 4.5%, or $105, over the $2,325 a month received in 2025. An O-1 without dependents in that area would receive $2,022 a month, an increase of $45 a month, or 2.2% , received in 2025.
Troops can use DOD’s BAH rate lookup tool to search for their 2026 rate by their ZIP code and rank.
Setting BAH rates includes collecting information on rental prices and utilities, such as electricity, heat and water/sewer. Officials determine the costs for six housing profiles, based on the type of dwelling and number of bedrooms, in each of those housing areas.
Officials use data from the services and local military installation housing offices, commercial subscription rental cost databases, U.S. Census Bureau survey data, the Bureau of Labor Statistics Consumer Price Index and online rental listing websites.
With questions raised about the calculation of BAH in recent years, Congress has weighed in on the issue, calling for more transparency and a study of alternatives such as using artificial intelligence and machine learning in calculating BAH.
In the proposed fiscal 2026 National Defense Authorization bill passed by the House on Wednesday, and awaiting a vote from the Senate, lawmakers have included a provision requiring DOD to develop a clear, accessible document that explains how BAH rates are determined.
The proposed NDAA also would require DOD to enter into an agreement to study alternative methods of rate calculations, to include reviewing commuting times and distances service members face, and the affordability of housing in at least 15 of the 299 military housing areas. Officials would look at whether the monthly BAH rates accurately reflect housing prices, and whether it’s sufficient for military families to get adequate and affordable housing in those areas. The study would need to be completed no later than three years after DOD enters into the agreement.
Many service members have been hit hard by increased housing costs over the last few years. In 2023, defense officials increased BAH rates by an average of 12.1%, the largest year-over-year jump in BAH in at least the previous 15 years.
The Government Accountability Office has reported that the Pentagon needs to improve the way it calculates troops’ housing allowances. Defense officials have been reviewing those procedures.
Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book “A Battle Plan for Supporting Military Families.” She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga.
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