Service members will see a 4.2% bump, on average, in their monthly Basic Allowance for Housing as of Jan. 1, defense officials announced Thursday.

The average increase for 2026 is lower than the 2025 average of 5.4%. Actual amounts can vary widely by military housing areas, and some service members may see a decrease in their monthly housing allowance. But in areas where there is a decrease, service members won’t be penalized. They’ll continue to receive the same amount they received in 2025 for as long as they are stationed there.

In their announcement, officials said they expect to pay an estimated $29.9 billion in housing allowances for about 1 million service members in 2026.

To set BAH rates each year, the Defense Department collects rental housing cost data for 299 military housin

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