· Updated
BAH Rates 2026: Complete Guide by ZIP Code
The Department of Defense updated Basic Allowance for Housing (BAH) rates effective January 1, 2026. Here's everything you need to know about the new rates and how they affect your military pay.
What Are BAH Rates?
Basic Allowance for Housing (BAH) is a U.S. military allowance designed to cover housing costs for service members who don't live in government-provided quarters. Rates are determined by your pay grade, dependency status, and the Military Housing Area (MHA) where you're stationed.
How Are 2026 BAH Rates Calculated?
The DoD surveys rental housing costs in each Military Housing Area annually. Rates are set to cover approximately 95% of average housing costs, with service members paying the remaining 5% out of pocket. The 2026 rates reflect current rental market data collected in 2025.
Key Changes for 2026
- Average BAH increase of approximately 4.2% across all pay grades
- Significant increases in high-cost areas like San Francisco, New York, and Honolulu
- Some areas saw modest decreases due to declining rental markets
- Rate protection ensures no service member sees a decrease if they remain at the same duty station
Find Your 2026 BAH Rate
Use our BAH Calculator to instantly look up your 2026 BAH rate by ZIP code. Simply enter your duty station ZIP code, pay grade, and dependency status to see your exact rate.
BAH Rate Examples by City (2026)
| City | E-5 w/Dependents | O-3 w/Dependents |
|---|---|---|
| San Francisco, CA | $4,215 | $5,142 |
| New York City, NY | $3,891 | $4,753 |
| Washington, DC | $2,967 | $3,624 |
| San Diego, CA | $3,234 | $3,950 |
| Fort Bragg, NC | $1,587 | $1,938 |
Frequently Asked Questions
Is BAH taxable?
No, BAH is not taxable income. It is a tax-free allowance, meaning you don't pay federal or state income tax on BAH payments. This makes BAH one of the most valuable components of military compensation.
Do BAH rates change mid-year?
BAH rates are updated annually, effective January 1. However, if you move to a new duty station during the year, your BAH will change to reflect the new MHA. Rate protection ensures your BAH won't decrease if rates drop at your current station.
How does BAH affect my GI Bill housing allowance?
The Post-9/11 GI Bill Monthly Housing Allowance (MHA) is based on the BAH rate for an E-5 with dependents at your school's ZIP code. Use our GI Bill Calculator to estimate your education benefits.