Defense Department Announces 4.2% Basic Allowance for Housing Rate for 2026
The Department of Defense announced a 4.2 percent average increase for the Basic Allowance for Housing (BAH) rates. This new rate takes effect on January 1, 2026, and is estimated to result in approximately $29.9 billion in housing compensation paid to approximately 1 million service members in 2026.
For college students and future learners, the BAH rate increase matters because it also affects the amount of the Post-9/11 GI Bill housing allowance paid to students in the 2026 school year.
Learn more: Post 9/11 GI Bill Application Guide for Active Duty and Veterans
How the Defense Department Calculates BAH
Defense officials determine the BAH rate based on three criteria: a service member’s pay grade, their dependency status, and their permanent duty location.
The department performs an annual review, analyzing housing costs in 299 military housing areas (MHAs) across the United States. Data collection involves input from various sources, including government statistics, commercial rental databases, and local housing offices. Analysts calculate the median market rent and the average utility cost for six specific housing profiles in each MHA.
Rate Protection and Member Contribution
Historical Comparison of BAH Increases
The 4.2% average increase for 2026 represents a slower growth rate than recent years, following several years of higher BAH adjustments. In 2023, BAH increased by just above 12%.
BAH Calculator
OHA Rate
Save this info for next time, stay up-to-date when changes are made, and calculate and save for multiple locations before your next move.
Learn more: Post 9/11 GI Bill Application Guide for Active Duty and Veterans
About the author
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
