2026 BAH rates went into effect January 1, with an average increase of 4.2% across all military housing areas. For active-duty service members and military families considering homeownership, this increase means more purchasing power when qualifying for a VA loan.
Your BAH is tax-free income, and it counts toward your mortgage qualification — which gives you a significant advantage over civilian borrowers earning the same amount in taxable wages. Understanding your 2026 BAH rate and how it applies to a VA loan is one of the most important steps in the homebuying process.
Use our BAH Calculator to look up your 2026 rate by ZIP code and pay grade.
What Changed in 2026 BAH Rates
The Department of Defense released the 2026 BAH rates on December 11, 2025. The national average increase was 4.2%, following consecutive 5.4% increases in 2024 and 2025. The DoD estimates it will pay approximately $29.9 billion in BAH to roughly one million service members in 2026.
BAH rates are calculated based on local rental costs, utility expenses, and the housing choices of civilians with comparable incomes in each military housing area. The DoD evaluates data from over 300 housing markets annually to set rates for 299 military housing areas across the continental U.S., Alaska, and Hawaii.
Individual rate changes vary by location. Some areas saw increases above 4.2%, while others saw smaller increases or even slight decreases. However, the DoD’s rate protection policy ensures that service members already stationed in an area will not see their BAH decrease as long as their pay grade and dependency status remain the same.
How BAH Helps You Qualify for a VA Loan
This is where BAH becomes a powerful homebuying tool. When you apply for a VA loan, your lender calculates your qualifying income to determine how much home you can afford. Your BAH counts as qualifying income — and because it is tax-free, it carries more weight than the same dollar amount in taxable wages.
Here is an example: An E-6 with dependents stationed at Fort Hood receives $1,692 per month in BAH for 2026. Because that income is tax-free, a lender effectively treats it as equivalent to a higher taxable income. Combined with base pay and any other allowances, this significantly increases your purchasing power.
Many service members are surprised to learn how much home they can actually afford once BAH is factored into the equation. A free pre-approval with TrueVet Mortgage will show you exactly what you qualify for based on your total income, including BAH.
2026 BAH Rates for Major Military Bases in Florida
Here are sample 2026 BAH rates (with dependents) for major Florida military installations. Rates vary by pay grade — use our BAH Calculator for your exact rate.
Patrick Space Force Base (Palm Bay / Melbourne area) — BAH rates on the Space Coast reflect the growing housing market in Brevard County. Service members at Patrick SFB benefit from relatively affordable housing compared to South Florida.
NAS Jacksonville / NS Mayport — Jacksonville’s BAH rates support homebuying in one of Florida’s most affordable major metros. The area offers a wide range of housing options within easy commuting distance of both installations.
Eglin AFB / Hurlburt Field (Fort Walton Beach area) — The Florida Panhandle offers moderate BAH rates with affordable housing in communities like Crestview, Niceville, and Navarre.
MacDill AFB (Tampa) — Tampa Bay BAH rates reflect the area’s growing housing market. South Tampa offers proximity to MacDill’s main gate, while Brandon and Riverview provide more affordable options.
NAS Pensacola — Pensacola’s BAH rates are among the most affordable in Florida, making it an excellent market for first-time VA loan homebuyers.
Look up your exact rate with our BAH Calculator, or visit our Florida VA Loans page for more information.
2026 BAH Rates for Major Military Bases in Texas
Texas is one of the best states for military homebuyers thanks to no state income tax, affordable housing, and strong BAH rates. Here are highlights for major Texas installations.
Fort Hood (Killeen) — Fort Hood BAH rates combined with Killeen’s affordable housing market make this one of the best locations in the country for military families to buy with a VA loan. Many service members can cover their entire mortgage payment with BAH alone.
Joint Base San Antonio (Lackland, Randolph, Fort Sam Houston) — San Antonio’s BAH rates support homebuying across a wide range of neighborhoods, from affordable suburbs like Schertz and Cibolo to communities closer to downtown.
Fort Bliss (El Paso) — El Paso offers some of the most affordable housing in Texas, and BAH rates here often exceed what is needed for a mortgage payment on a typical home.
Sheppard AFB (Wichita Falls) — Wichita Falls has very affordable housing, and service members at Sheppard often find that their BAH covers their full VA loan payment with room to spare.
Dyess AFB (Abilene) — Similar to Wichita Falls, Abilene’s affordable housing market means BAH can cover most or all of a monthly mortgage payment for many pay grades.
NAS Corpus Christi — Corpus Christi offers affordable coastal living with BAH rates that support comfortable homebuying in the area.
Look up your exact rate with our BAH Calculator, or visit our Texas VA Loans page for more information.
BAH and VA Loan Benefits: A Powerful Combination
When you combine your tax-free BAH with the benefits of a VA loan, the math works strongly in your favor:
Zero down payment — Unlike conventional loans that require 3% to 20% down, VA loans require nothing out of pocket. Your BAH goes directly toward your monthly mortgage payment instead of saving for a down payment.
No monthly mortgage insurance — Conventional and FHA loans charge monthly mortgage insurance that adds hundreds to your payment. VA loans do not, which means more of your BAH covers actual principal and interest.
Competitive interest rates — VA loan rates are typically 0.25% to 0.50% lower than conventional rates, further reducing your monthly payment.
Tax-free qualification — Because BAH is not taxed, lenders treat it as a higher effective income. This means you qualify for more home than a civilian earning the same gross pay.
For many military families, especially at affordable duty stations like Killeen, El Paso, Wichita Falls, and Pensacola, it is possible to cover your entire VA loan payment with BAH alone.
What Happens to BAH When You PCS or Separate
If you PCS to a new duty station, your BAH adjusts to the rate for your new location. If you already own a home, your mortgage payment stays the same — but your BAH may go up or down depending on where you move. This is an important factor to consider when choosing how much home to buy.
If you separate or retire from the military, BAH stops. However, your VA loan remains in place and your payment does not change. Many veterans plan their home purchase around their expected post-military income to ensure they can comfortably afford the payment after BAH ends.
Scott Carlin at TrueVet Mortgage helps military families think through these scenarios during the pre-approval process, so you buy a home you can afford both during and after service.
Frequently Asked Questions About BAH and VA Loans
Is BAH considered income for a VA loan?
Yes. BAH is tax-free qualifying income for a VA loan. Because it is not taxed, it effectively carries more weight than the same amount in taxable wages.
Do I get BAH if I live on base?
If you live in privatized on-base housing, your BAH is typically paid directly to the housing management company. If you live in government quarters, you generally do not receive BAH.
Can my BAH cover my entire mortgage payment?
In many affordable markets like Killeen, El Paso, Wichita Falls, Pensacola, and Panama City, it is possible for your BAH to cover your full VA loan payment depending on your pay grade and the purchase price.
What happens to my BAH if rates go down next year?
The DoD’s rate protection policy ensures that your BAH will not decrease as long as you remain at the same duty station with the same pay grade and dependency status.
Can I use BAH to qualify for a VA loan if I am about to PCS?
Yes. Scott works with military families remotely and can use your BAH at your new duty station to pre-approve you before you arrive.
How do I find my 2026 BAH rate?
Use our free BAH Calculator to look up your rate by ZIP code, duty station, or military base name.
Ready to See How Your BAH Can Help You Buy a Home? Call Scott Carlin at 321-364-4461 or visit our Schedule a Call page to book a free VA loan consultation.
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