The short answer
For 2026, the monthly housing allowance for an E-5 with dependents ranges from $1,185 to $5,127 across DoD's 299 military housing areas, with a median area of $2,118 (our calculation from DoD's rate files). DoD sets rates from median local rents plus utilities and says 2026 rates rose 4.2% on average. Members choose where to live, and their actual housing costs can be higher or lower than the allowance.
Key takeaways
The key numbers
The Basic Allowance for Housing, or BAH, is a monthly allowance for service members assigned to permanent duty in the 50 states who are not provided government housing. DoD says the 2026 rates rose by an average of 4.2% and will total about $29.9 billion for about one million members.
Across the 299 military housing areas, the rate for an E-5 with dependents ranges from $1,185 to $5,127 a month, more than four times as much at the top as at the bottom. Medians and ranges here are our calculations from DoD's rate files, treating each area equally.
| Measure | Value | Source |
|---|---|---|
| Military housing areas | 299 | DoD |
| Average increase, 2025 to 2026 | 4.2% | DoD |
| E-5 with dependents, median area | $2,118 | Ours, from DTMO rates |
| E-5 with dependents, middle 80% of areas | $1,501 to $3,399 | Ours, from DTMO rates |
| E-5 with dependents, lowest and highest area | $1,185 to $5,127 | Ours, from DTMO rates |
| E-5 without dependents, median area | $1,713 | Ours, from DTMO rates |
| Member cost-sharing built into rates | $93 to $212 | DoD |
| Rates took effect | January 1, 2026 | DoD |
How is BAH set?
Each year DoD prices median rent and utilities for 6 housing profiles, set by home type and bedroom count, in every military housing area. It draws on Census and Consumer Price Index data, commercial rental data and listings, and input from installation housing offices.
Each pay grade, with and without dependents, is matched to the housing that civilians with similar incomes tend to choose. The 2026 rates keep a member cost-sharing amount equal to 5% of the national average housing cost for each grade, which DoD puts at $93 to $212 a month.
BAH follows the member's assigned duty location, pay grade and dependency status, even if the member chooses to live somewhere else. DoD says BAH is not meant to cover every housing cost, and members decide how to spend it, so what a member actually pays in rent can be higher or lower than the allowance.
How much does BAH vary by location?
For an E-5 with dependents, the median area pays $2,118 a month, and the middle 80% of areas fall between $1,501 and $3,399. Of the 299 areas, 181 (61%) pay between $1,500 and $2,499, and 10 pay $4,000 or more.
The highest rates are in San Francisco, CA ($5,127) and New York City, NY ($5,070). The lowest is Anniston/Fort McClellan, AL ($1,185); the ten lowest areas are in Alabama, Ohio, Louisiana, Oklahoma, Arkansas and Mississippi.
DoD's rate file also lists 39 county cost groups, which cover locations outside the named housing areas; for an E-5 with dependents those range from $1,329 to $3,156 and are not counted in the medians above.
| Military housing area | With dependents | Without dependents |
|---|---|---|
| San Francisco, CA | $5,127 | $4,086 |
| New York City, NY | $5,070 | $4,980 |
| Boston, MA | $4,791 | $3,615 |
| Northern New Jersey, NJ | $4,749 | $3,561 |
| Santa Clara County, CA | $4,659 | $3,798 |
| Westchester County, NY | $4,479 | $3,606 |
| Long Island, NY | $4,425 | $3,600 |
| Nantucket, MA | $4,344 | $3,798 |
| Maui County, HI | $4,329 | $3,246 |
| Hanscom AFB, MA | $4,188 | $3,516 |
Where is BAH lowest?
These ten areas have the lowest 2026 rates for an E-5 with dependents. Rates without dependents are lower in every area shown.
| Military housing area | With dependents | Without dependents |
|---|---|---|
| Anniston/Fort McClellan, AL | $1,185 | $1,119 |
| Youngstown, OH | $1,191 | $1,017 |
| Monroe, LA | $1,194 | $1,023 |
| Vance AFB/Enid, OK | $1,200 | $1,065 |
| Fort Polk, LA | $1,218 | $1,128 |
| Fort Sill/Lawton, OK | $1,233 | $1,092 |
| Altus AFB, OK | $1,254 | $1,032 |
| Fort Chaffee/Fort Smith, AR | $1,263 | $996 |
| Meridian, MS | $1,290 | $1,062 |
| Alexandria, LA | $1,290 | $1,161 |
How does BAH differ by pay grade?
BAH rises with rank. In the median area, an E-5 with dependents receives $2,118 a month and an O-3 with dependents $2,601. E-1 through E-4 share one rate within each area, and the median O-1 rate sits between the E-5 and E-6 rates.
Rates without dependents are lower. For an E-5, the without-dependents rate is a median of about 82% of the with-dependents rate across areas (our calculation).
| Pay grade | With dependents | Without dependents |
|---|---|---|
| E-1 to E-4 | $1,947 | $1,557 |
| E-5 | $2,118 | $1,713 |
| E-6 | $2,418 | $1,878 |
| E-7 | $2,493 | $1,989 |
| O-1 | $2,160 | $1,797 |
| O-3 | $2,601 | $2,298 |
| O-5 | $3,099 | $2,520 |
How much did BAH change for 2026?
DoD reports an average increase of 4.2%. By our calculation, the E-5 with-dependents rate rose in 253 of the 299 areas, with a median change of 3.7%, stayed the same in 3 and fell in 43. Our median treats each area equally, so it differs from DoD's average.
A lower area rate does not cut pay for members already there. Under individual rate protection, a member who keeps uninterrupted eligibility at the same location does not see a rate decrease.
The largest rise was in Abilene/Dyess AFB, Texas, where DoD temporarily raised 2026 rates from May 16, 2026, by about 24% on average. The E-5 with-dependents rate there is now $1,872 (up 26% from $1,485 in 2025). These temporary rates expire December 31, 2026.
Source: U.S. Department of War (Department of Defense)Source: Defense Travel Management Office, U.S. Department of DefenseSource: Defense Travel Management Office, U.S. Department of DefenseSource: Defense Travel Management Office, U.S. Department of DefenseSource: Military Compensation and Financial Readiness, Office of the Under Secretary of Defense for Personnel and Readiness
How does BAH compare with local rents?
BAH is built from median rents and utilities in each area, so it tracks the local market by design, but it is not a rent quote for any one unit. Each rate reflects a specific housing profile for a pay grade, includes utilities, and nets out the 5% cost-sharing amount.
HUD's Fair Market Rents measure something different: HUD's estimates of 40th percentile gross rents for standard-quality units in a metropolitan area or nonmetropolitan county, used to set Housing Choice Voucher payment standards and in other HUD programs. Military housing areas and HUD's areas are drawn differently, so the two figures are not directly comparable.
To see the rate for a specific location and grade, use the official BAH calculator, which looks rates up by ZIP code.
What this means for landlords
These are considerations, not legal or financial advice.
- Use BAH as context, not a price. It reflects what DoD estimates housing costs for a grade in an area, and members may spend more or less of it on rent.
- Expect rates to reset each January. DoD usually announces new rates in mid-December. A member's rate also changes with a new duty station, a change in pay grade or a change in dependency status.
- Apply the same written screening criteria to every applicant. Whether military or veteran status is a protected characteristic varies by state and locality, so check the rules where your property is.
- Apply your written income standard the same way to every applicant. BAH is a non-taxable allowance rather than basic pay, so make sure the standard states clearly how allowances and other non-wage income are counted.
Methodology
We used the Defense Travel Management Office's 2026 and 2025 rate files for all locations and pay grades. The 2026 file includes the Abilene/Dyess AFB temporary rates effective May 16, 2026; it also contains the earlier Abilene rates, which we did not use. DoD's servers refuse scripted downloads, so the files were downloaded and unzipped in a browser, and file hashes are recorded with the page's working files.
We confirmed which column holds each pay grade by matching the file against DoD's online calculator for E-5 and O-3 in Abilene. National medians, percentiles, rankings and the 2025 to 2026 change treat each of the 299 named military housing areas equally; they are not weighted by how many members live in each area, which DoD does not publish in these files. The 39 county cost groups are reported separately.
Program descriptions come from DoD's December 11, 2025 release and DoD's BAH pages. We plan to refresh this page when DoD releases 2027 rates, usually in mid-December.
Source: Defense Travel Management Office, U.S. Department of DefenseSource: Defense Travel Management Office, U.S. Department of DefenseSource: Defense Travel Management Office, U.S. Department of DefenseSource: U.S. Department of War (Department of Defense)Source: Defense Travel Management Office, U.S. Department of Defense
Limitations
Keep these limits in mind.
- Our medians count each area once, so a small rural area counts as much as a large metro. They are not the typical rate a service member receives.
- BAH rates are DoD's estimates for set housing profiles, including utilities and after cost-sharing; they are not a measure of what any member pays or of rent for a particular unit.
- Individual rate protection means some members are paid more than the published 2026 rate for their area.
- The Abilene/Dyess AFB rates are temporary and expire December 31, 2026.
- This page does not forecast 2027 rates.
Number of military housing areas by 2026 monthly BAH for an E-5 with dependents, in $500 bands. Source: Defense Travel Management Office, 2026 BAH rates.
Median 2026 monthly BAH across 299 military housing areas, by pay grade, with and without dependents. Source: Defense Travel Management Office, 2026 BAH rates.
Questions that come up
Is BAH taxable?
No. DoD says BAH is an allowance rather than pay, and service members are not taxed on it.
Does a service member have to spend all of BAH on rent?
No. DoD says members decide how to use the allowance, and their actual housing costs can be higher or lower than the rate.
When do BAH rates change?
Usually once a year, though DoD can adjust an area mid-year, as it did for Abilene/Dyess AFB from May 16, 2026. DoD usually releases new rates in mid-December, and they take effect January 1. A member's rate also changes with a new duty station, a change in pay grade or a change in dependency status.
Does this page say how much rent to charge a service member?
No. It reports DoD's allowance rates. Set rent the same way for every applicant, from your market and your written policies.
Sources and references
Follow each source to check the underlying claim. Access checks and professional review are different steps.