Military households will receive an average 4.2% increase in their Basic Allowance for Housing in 2026.
The Pentagon provided the annual update to Military.com. The new housing allowance rates will take effect Jan. 1.
About a million service members a year receive BAH, either directly, to obtain their own housing, or indirectly as a payment to their installation's privatized housing operator. The Pentagon estimates that it will pay $29.9 billion in BAH payments in 2026, according to an announcement provided with the rates, up from the 2025 estimate of $29.2 billion.
The 2026 average increase of 4.2% is lower than the two consecutive average increases of 5.4% in 2025 and 2024. In 2023, military households received a 12.1% average increase after costs had skyrocketed the prior year.
The 2026 BAH increase comes at the same time as a likely pay raise for service members. As of Dec. 11, the House of Representatives had approved the 3.8% increase in basic pay. The proposed pay raise now requires the Senate's approval and President Joe Biden's signature.
Read next: 2026 Proposed Military Pay Raise
Any given household's BAH increase may not add up to the full 4.2% average. It may be higher, depending on geographic differences in housing markets, and the rates in some areas might even go down -- but in that instance, service members already living there get to keep their existing rates.
The 2026 National Defense Authorization Act passed by House Republicans calls for “a study to improve the calculation of Basic Allowance for Housing to ensure it keeps up with rising rental costs,” according to the Republicans’ legislative summary.
To try to base the rates on "high-quality, accurate, current-year housing cost data," the Pentagon compiles information from government departments, commercial subscription services that maintain databases of rates, publicly available websites, and installation managers such as housing officials.
The rates apply to 299 military housing areas in the continental U.S., Alaska and Hawaii. The factors evaluated to determine a rate for each rank in a given area include the rents of certain housing types and sizes, utility costs, and "the housing choices of civilians with comparable incomes," according to the announcement.
The calculation aims for the U.S. government to pay for 95% of service members' housing and for troops to make up the remaining 5%, amounting to about $93 to $212 per month out of pocket in 2026, depending on rank and whether the service member has dependents.
Related: Here Are Your 2026 BAH Rates
