The Department of War announced on Thursday that the basic housing allowance for U.S. military members will increase by an average of 4.2 percent in 2026.
In a Thursday press release, the Department of War said, “The basic allowance for housing rates will increase by an average of 4.2 percent, and an estimated $29.9 billion will be paid to approximately one million service members. The new rates will take effect January 1, 2026.”
The Department of War explained that rental housing cost information is collected annually for 299 different military housing areas across the United States. The department noted that the basic allowance is determined by a “wide variety of data sources,” such as the Bureau of Labor Statistics Consumer Price Index, the U.S. Census Bureau, rental listing websites, and military installation housing offices, which results in “high-quality, accurate, current-year housing cost data.”
“The 2026 rates are part of a robust military compensation package and continue the member cost-sharing element at five percent of the national average housing cost by pay grade,” the Department of War stated. “These amounts vary by grade and dependency status and range from $93 to $212 monthly.”
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The Department of War added that part of the military’s basic allowance housing program is ensuring that military members with uninterrupted basic housing allowance for a particular area do not experience a housing allowance rate decrease.
“This ensures that service members who have made long-term commitments in the form of a lease or contract are not penalized if the area’s housing costs decrease,” the Department of War said.
According to Military.com, the increase in basic housing allowance for U.S. military members comes amid a likely pay increase for military members. The outlet noted that the U.S. House of Representatives has approved a 3.8% increase in basic pay and that the pay increase now requires approval by the U.S. Senate before President Donald Trump can sign it into law.
Military.com reported that the 4.2 percent increase in the average basic housing allowance for U.S. military members is slightly lower than the 5.4% increases military members received in 2024 and 2025 and is far lower than the 12.1 percent increase average military households received in 2023 to address skyrocketing costs.
