If you are stationed at Fort Hood, your Basic Allowance for Housing (BAH) is likely one of the largest parts of your monthly pay. Many service members spend all of it on rent without checking what it could do toward owning a home.
I am Scott Carlin, a 20-year Air Force veteran and the broker behind TrueVet Mortgage. Here is how BAH works for the Fort Hood area in 2026, what sets your rate, and how it counts when you use your VA home loan benefit.
Which military housing area covers Fort Hood?
BAH is set by Military Housing Area, or MHA. The Department of Defense lists the Fort Hood area as MHA TX286.
Your rate is based on the ZIP code of your permanent duty station, not the ZIP code where you live. That has a practical result. Whether you rent a duplex in Killeen or buy a house in Harker Heights, Copperas Cove, or Belton, your allowance stays the same. Your housing costs are what change. The gap between the two is where buying can start to make sense.
How to find your 2026 BAH rate at Fort Hood
The 2026 BAH rates took effect January 1, 2026. Across the force, rates rose by an average of 4.2 percent for 2026, and local markets moved by different amounts.
Your exact rate depends on your pay grade and whether you have dependents. Look it up on the official Department of Defense BAH Rate Lookup at travel.dod.mil, using your duty station ZIP code. You can also use our BAH calculator for a quick estimate. When you apply for a loan, your lender will verify the amount you actually receive.
What determines your BAH
Three things:
- Your duty station ZIP code, which sets your MHA.
- Your pay grade.
- Whether you have dependents. This is a yes-or-no question, not a headcount. BAH does not go up as the number of dependents goes up.
Your BAH is not adjusted for your actual rent or for the home you choose. The Department of Defense sets rates so that service members pay about 5 percent of the national average housing cost for their pay grade out of pocket.
Two more points. BAH is not taxable income. And if rates in your area go down in a future year, rate protection means your allowance does not drop as long as you stay eligible at the same location. A PCS move, a reduction in pay grade, or a change in dependency status ends that protection.
How BAH helps you buy instead of rent
BAH counts as income for a VA loan. The VA Lenders Handbook allows a lender to include your housing allowance in effective income when it is properly verified. That is monthly income a civilian buyer with the same base pay does not have. Keep in mind that the amount changes from one duty station to another, and lenders look closely at income if you are within 12 months of leaving active duty.
You may not need a down payment. A VA loan can require no down payment as long as the sales price is not higher than the appraised value. There is also no monthly mortgage insurance on a VA loan, which is a real monthly savings compared with a low-down-payment conventional or FHA loan. A one-time VA funding fee may apply. VA rates are also often lower than conventional rates.
Run the numbers for your tour. For a two-year or three-year assignment, it is worth comparing renting and buying side by side instead of assuming renting is simpler.
Buying is not always the right choice. If you are near the end of a tour, expecting a fast PCS move, or not sure you want to be a long-distance landlord, renting may still be the better option. Make that decision with the numbers in front of you. Our Killeen VA loan page covers the local picture, and the VA loan process page shows what the timeline looks like.
Texas property tax exemptions to ask about
Texas has no state income tax, but property taxes are a large part of a Texas monthly payment through escrow. Two exemptions matter a great deal.
The residence homestead exemption. Texas school districts must provide a $140,000 exemption on a residence homestead. You apply with the appraisal district in the county where the home is located. The general filing deadline is before May 1.
The disabled veteran exemption. If the VA has rated you 100 percent disabled or individually unemployable and awarded 100 percent disability compensation, your Texas residence homestead is fully exempt from property tax. A surviving spouse who has not remarried may keep the exemption on the same home. Veterans with lower ratings can get a partial exemption on one property, and the amount depends on the rating. This can lower the property tax part of your monthly payment a great deal.
A payment estimate that leaves out the exemptions you qualify for will not match what you actually pay. Ask about them up front.
What to do before you PCS in
- Get your Certificate of Eligibility early. It shows your lender that you qualify for the VA benefit. See how to get your COE.
- Get pre-approved early if you can. House hunting during a short window before you report is easier when your financing is already in place.
- Know your entitlement status. If you used a VA loan before and still own that home, you may still have remaining entitlement to buy another home. See using your VA loan more than once.
- Check the basics. The VA loan requirements page covers service, credit, and income in plain language.
Frequently asked questions
What is the 2026 BAH at Fort Hood?
It depends on your pay grade and whether you have dependents. Use the official Department of Defense BAH Rate Lookup at travel.dod.mil with your duty station ZIP code, or our BAH calculator. The 2026 rates took effect January 1, 2026.
Do soldiers living in Copperas Cove or Belton get a different BAH than those in Killeen?
No. BAH is based on the ZIP code of your duty station, not where you live. Where you live changes what you get for the money, not the allowance.
Can I use my BAH to qualify for a mortgage?
Yes. On a VA loan, a lender can count your BAH as income once it is verified. That is one reason a service member can often qualify for more home than a civilian with the same base pay.
Does BAH change every year?
Yes. Rates are reset each year to follow local housing costs, so they can rise or fall. Rate protection keeps your allowance from dropping while you stay eligible at the same location.
Is BAH taxable?
No. The IRS treats BAH as a qualified military benefit that is excluded from income.
What if I get orders out of Fort Hood after buying?
You have options. You can sell, rent the home out, or let a qualified veteran assume the loan and substitute their entitlement for yours. If you keep the home, you may still have remaining entitlement to buy at your next duty station. Plan for this before you buy. If your next stop is San Antonio or Abilene, we lend there too.
Talk to a veteran-owned team
I know what a PCS timeline does to a home search, and I know how Texas escrow works. As a broker, I shop your file across multiple lenders instead of offering one bank’s products.
If you are heading to Fort Hood or already there and want to know whether your BAH could go toward a home of your own, we will run your actual numbers. See all of our Texas VA loan markets.
Call or text 321-364-4461, or send us a message.
See all of our VA loan guides.