The Department of War on Thursday released the 2026 Basic Allowance for Housing rates, confirming that service members will see an average 4.2% increase beginning Jan. 1. The boost represents one of the largest housing-allowance expenditures in recent years, with roughly $29.9 billion slated to go to about one million troops nationwide in 2026.
While the Pentagon announced the average increase, the actual monthly adjustment for individual service members will range from $93 to $212, depending on pay grade, dependency status, and the cost of housing in each area. Alaska, home to Joint Base Elmendorf–Richardson, Eielson Air Force Base, Fort Wainwright, and other strategic Arctic installations, is included in the department’s annual review of all 299 military housing areas across the United States.
Alaska is home to about 20,000 active-duty US military members.
The BAH calculation process is built from a wide set of data sources that capture current-year rental patterns: US Census Bureau surveys, Consumer Price Index data, commercial rental databases, major online listing platforms, and local input from installation housing offices. These figures help determine median rents and utilities, including heat, electricity, water, and sewer, for six standardized housing profiles, ranging from a one-bedroom apartment for an E-4 to a four-bedroom single-family home for an O-5 with dependents.
BAH is structured to cover about 95% of typical housing costs based on what civilians of comparable income pay in the same region. The remaining 5% is the built-in “member cost-sharing” element the Defense Department maintains across pay grades.
The department stressed the importance of rate protection: Service members who remain in the same duty location with uninterrupted eligibility will not see their BAH decrease. The protection ensures troops are not penalized for signing long-term leases in areas where prices later fall.
The adjustment comes at a time when many rental markets, including Anchorage and Fairbanks, are still experiencing tight inventory and high utility costs. Alaska’s inclusion in the review is particularly relevant as the US military continues shifting strategic focus to the Arctic, where troop stationing, training tempo, and family housing stability are all considered readiness factors.
The Pentagon noted that while the national average rose, not all regions will see the same trend, since local rental conditions vary widely. The 2026 rates reflect those differences.
More information, including area-specific rates and BAH calculators, is available at:
– 2026 BAH rates: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/
– BAH rate lookup tool: https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/
