The Department of War is releasing the 2026 basic allowance for housing rates today.
The basic allowance for housing rates will increase by an average of 4.2 percent, and an estimated $29.9 billion will be paid to approximately one million service members. The new rates will take effect January 1, 2026.
The Department collects rental housing cost data annually for 299 military housing areas in the United States, including Alaska and Hawaii. The basic allowance for housing rate-setting process relies on a wide variety of data sources to obtain high-quality, accurate, current-year housing cost data. Data sources include U.S. Census Bureau survey data, the Bureau of Labor Statistics Consumer Price Index, commercial subscription rental cost databases, industry-leading online rental listing websites, and input from the services and local military installation housing offices. While average basic allowance for housing rates increased, various rental markets may experience different market trends, and the 2026 rates reflect those geographic market condition differences.
Median market rents and utilities such as electricity, heat, and water/sewer are included in the basic allowance for housing computation for each military housing area. The total housing costs are determined for six housing profiles based on dwelling type and number of bedrooms in each military housing area. Basic allowance for housing rates are then calculated for each pay grade, both with and without dependents, based on the housing choices of civilians with comparable incomes to each service member pay grade grouping.
The 2026 rates are part of a robust military compensation package and continue the member cost-sharing element at five percent of the national average housing cost by pay grade. These amounts vary by grade and dependency status and range from $93 to $212 monthly.
An integral part of the basic allowance for housing program is the provision of individual rate protection to all members. No matter what happens to housing costs – including the out-of-pocket expense adjustment – an individual service member who maintains uninterrupted basic allowance for housing eligibility at a given location will not see a rate decrease. This ensures that service members who have made long-term commitments in the form of a lease or contract are not penalized if the area's housing costs decrease.
