It’s the most wonderful time of the year. The Christmas trees are glowing and the hot chocolate’s flowing, but for military families, it’s not only visions of sugar plums (whatever those are) dancing through their heads. Every year, this season leaves every military homebuyer wondering the same thing: When will new military BAH rates be released?
BAH Rates Explained
For active duty, few numbers matter more than Basic Allowance for Housing (BAH). This tax-free housing stipend is available for uniformed service members who choose to live off base at duty stations located within the 50 U.S. states. But this benefit didn’t always exist.
In the post-World War II era, all service members were expected to live on base. While convenient, this setup quickly led to housing shortages. So, the government developed a benefit called Basic Allowance for Quarters (BAQ) to provide a small, standard stipend for off-base housing. There was a big problem, though. Because BAQ didn’t take local housing costs into consideration, many service members in high-cost areas were left to pay steep out-of-pocket housing expenses.
In the 1990s, Congress stepped in to save the day. Their plan involved a complete BAQ overhaul, creating a system based on data markers instead of standard rates. In 1998, their hard work came to fruition with BAH completely replacing BAQ. For all you history enthusiasts, we delve more into the history and evolution of BAH here. But thanks to the modernization of this system, standard housing rates are—well—history, and the amount of BAH a service member receives is now determined by three factors:
1. Pay Grade
Military BAH increases along with your time in service. So, a newly-commissioned officer completing their first year in the military won’t have the same allocation as someone with 20 years of service—even if they’re stationed at the same base.
2. Geographic Location
BAH rates are based on the local rental market rates and average cost of utilities at each duty station. Every person stationed in San Diego is grateful for this.
3. Dependents
BAH is different for single active-duty military and those with a family in tow. Sadly, furchildren and high-maintenance houseplants don’t count as dependents (yet).
Each year, the DoD analyzes data to track closely with the real cost of living at each duty station. In other words, when markets shift, BAH follows. The new rates then go into effect on January 1st every year.
And don’t worry, military personnel serving overseas still have access to housing benefits with some minor changes. Instead of BAH, overseas active duty receive Overseas Housing Allowance, or OHA, which also includes a move-in housing allowance.
Military BAH has come a long way since the early days, and now allows service members to cover about 95% of their housing costs. Additionally, protections like Individual Rate Protection were added to ensure members never receive less BAH than the previous year as long as their duty station and dependency status are the same. Though not perfect, BAH has been instrumental in transforming military housing support from an add-on benefit to a foundational component of financial health and future stability for military families.
How BAH Impacts PCS Buying Power
As touched on earlier, BAH is based on rental markets, which draws from the assumption that those who use it will be renting at their duty station. But, BAH can also be an invaluable tool to leverage for homeownership—particularly when paired with the VA loan.
New to the VA Loan? Check out our free VA Loan Masterclass here!
For PCS planning, BAH works as your baseline housing budget. So before you start browsing Zillow or asking about neighborhoods in Facebook groups, your expected BAH rate gives you a realistic sense of what’s affordable in that market.
But here’s where BAH really does the heavy lifting: when buying a house, lenders can usually count BAH as qualifying, nontaxable income for VA loans. That means your housing allowance directly affects your debt-to-income ratio, your maximum approved loan amount, and ultimately, the price range of homes you can shop for.
In short, when used strategically (especially at each PCS), BAH doesn’t just cover housing. Instead, it can help set military families up for real wealth. That’s the long game WeVett is building toward: helping families exit the military with a paid for or nearly paid for home.
2026 BAH Rates
Now, the moment you’ve all been waiting for. Though the official BAH rates for 2026 haven’t been released yet, current projections are setting expectations at a jump between 4.5%-5.5% in 2026, tracking rental market trends. This is a similar figure to last year’s 5.4% increase, but only time will tell how the numbers shake out.
But one thing we DO know is when the final numbers drop, you’ll be able to plug your duty station’s zip code into the WeVett’s 2026 Military BAH Calculator to get the most accurate 2026 BAH rates. It covers all military branches and locations that receive BAH, so you can start the new year with a clearer runway for PCS planning—especially if you’re navigating the PCS buy vs. rent decision.
In the meantime, our tools and team are here to help you plan your next chapter. If you’re looking for guidance in understanding how BAH can shape your military homeownership journey, feel free to reach out!