BAH Rates by State 2026: Complete Analysis

Basic Allowance for Housing is one of the most significant components of military compensation, and it varies dramatically depending on where you are stationed. An E-5 with dependents in San Francisco receives $5,127 per month in BAH, while the same E-5 at Fort McClellan in Alabama gets $1,185. That is a $3,942 monthly difference for the exact same rank and time in service.

This guide breaks down 2026 BAH rates across all 50 states and the District of Columbia. Whether you are PCSing and want to compare locations, negotiating an assignment, or just curious how your BAH stacks up nationally, you will find the data here.

All rates shown below are for an E-5 with dependents. For other ranks and dependency statuses, use the BAH Calculator or browse rates by location on the 2026 BAH Rates page.

Top 10 Highest BAH States in 2026

The highest BAH rates correspond to the most expensive housing markets in the country. Coastal metropolitan areas dominate this list, with California and the Northeast taking the top spots.

San Francisco's $5,127 monthly BAH rate reflects the extreme housing costs in the Bay Area. Even at this level, service members often find that BAH does not fully cover a family-sized rental in prime neighborhoods. However, it is still a significant tax-free benefit—equivalent to roughly $6,500 to $7,000 in pre-tax civilian income.

Note that some states appear on this list because of one extreme location. Florida, for example, ranks high because of the Keys, but most Florida military installations have BAH rates in the $1,800 to $2,400 range.

Top 10 Lowest BAH States in 2026

Lower BAH rates generally correspond to areas with lower cost of living, which can actually work in your favor. If your BAH is $1,200 per month but local rents are $900, you pocket the difference tax-free.

Service members stationed in these areas often find that their BAH goes further relative to local housing costs. In places like Enid, Oklahoma or Monroe, Louisiana, it is entirely possible to find quality housing below the BAH rate and keep the difference. That surplus is still tax-free and can be directed toward savings, debt payoff, or TSP contributions.

BAH Rate Ranges by State: All 50 States + DC

The table below shows the full range of E-5 with dependents BAH rates for every state. The "Highest Location" column shows the most expensive Military Housing Area in that state, and "Lowest Location" shows the least expensive. States with only one MHA show the same rate for both.

The variation within a single state can be striking. California ranges from $5,127 in San Francisco down to $1,563 at China Lake—a spread of over $3,500. New York spans from $5,070 in NYC to $1,665 at Fort Drum. If you have any choice in your assignment, these differences are worth factoring into your financial planning.

For detailed rates at specific locations within each state, visit the BAH rates by state directory.

How BAH Is Calculated

The Department of Defense determines BAH rates using a standardized methodology that accounts for local housing market conditions. Here is how the process works:

1. Housing cost surveys: Each year, the DoD contracts with a private firm to survey rental costs in every Military Housing Area. They collect data on median rental prices for apartments, townhouses, and single-family homes sized appropriately for each pay grade.
2. Housing profiles by grade: Different ranks get different housing types. A junior enlisted member (E-1 to E-3) is benchmarked against a one-bedroom apartment or townhouse. A mid-grade NCO gets a two-bedroom townhouse. Senior NCOs and officers are benchmarked against larger homes. This means higher-ranking members have higher BAH rates even in the same location.
3. Utilities included: BAH rates include an estimated cost for utilities (electric, gas, water, sewer) and renter's insurance on top of the rent amount.
4. 95% coverage target: As of recent policy, BAH is designed to cover approximately 95% of local housing costs. Service members are expected to cover the remaining 5% out of pocket. This "cost share" was reintroduced in 2015.
5. Individual Rate Protection: If rates decrease in your area from one year to the next, your individual BAH rate is protected as long as you remain at that duty station with the same dependency status. This protection ensures you never see a BAH decrease mid-assignment.

The whole process runs on an annual cycle, with new rates taking effect on January 1 each year. The survey data is typically collected in the spring and summer of the prior year.

BAH vs. Actual Housing Costs

One of the most common questions service members have is whether BAH actually covers their rent. The answer depends heavily on where you live and your housing expectations.

In most areas, BAH closely tracks local rental costs for the type of housing associated with your rank. An E-5 with dependents in a mid-cost area receiving $2,100 per month can typically find a suitable two-bedroom townhouse or apartment within that budget. In some lower-cost locations, BAH may exceed what you actually spend, and you pocket the tax-free difference.

However, in high-cost areas, the gap between BAH and actual housing costs can be significant. An E-5 receiving $5,127 in San Francisco BAH may still struggle to find family housing at that price point in desirable neighborhoods. Many service members in these areas choose to live further from the base, share housing with another service member, or accept smaller living spaces to stay within their BAH budget.

Here are some strategies for making BAH work in any market:

• Live below your BAH: In lower-cost markets, pocket the difference. An E-5 in Oklahoma earning $1,644 BAH who rents for $1,100 keeps $544 per month tax-free.
• Consider the commute: Living 20 to 30 minutes from base often dramatically reduces housing costs while still keeping commute times reasonable.
• Factor in the tax advantage: BAH is tax-free, so $2,000 in BAH has the purchasing power of roughly $2,500 to $2,700 in civilian salary. Keep this in mind when comparing housing affordability.
• Check your rate before PCSing: Use the BAH Calculator to compare rates at potential duty stations before you move.

When evaluating your total compensation, BAH is a major factor. Combined with your base pay (boosted by the 2026 3.8% pay raise) and BAS, your housing allowance represents a substantial portion of your take-home income. Use the Military Pay Calculator to see the full picture.

Frequently Asked Questions

Which state has the highest BAH rate in 2026?

California has the highest BAH rate in 2026. The San Francisco MHA pays an E-5 with dependents $5,127 per month, making it the most expensive Military Housing Area in the country. New York City is close behind at $5,070 per month.

Which state has the lowest BAH rate in 2026?

Alabama has the lowest BAH rate in 2026. The Anniston/Fort McClellan area pays an E-5 with dependents just $1,185 per month. Other low-BAH locations include Youngstown, OH ($1,191), Monroe, LA ($1,194), and Vance AFB/Enid, OK ($1,200).

How is BAH calculated by the Department of Defense?

The DoD calculates BAH using annual housing cost surveys in each Military Housing Area. They collect data on median rental prices for housing appropriate to each pay grade. The rate is set to cover approximately 95% of local housing costs and includes utilities and renter's insurance. Rates are calculated separately for members with and without dependents.

Can my BAH rate decrease if I stay at the same duty station?

No. Under the Individual Rate Protection policy, your BAH rate cannot decrease as long as you remain at the same duty station with the same dependency status. If the following year's survey shows lower housing costs, you keep your current higher rate. Your rate only resets when you PCS to a new location.

Is BAH taxable income?

No, BAH is completely tax-free. It is not subject to federal income tax, state income tax, or FICA. This makes BAH significantly more valuable than an equivalent amount of taxable civilian income. An E-5 receiving $2,500 in monthly BAH would need roughly $3,200 to $3,500 in pre-tax civilian salary to match the same take-home value.