BAH Is More Than a Housing Allowance – It’s a Homebuying Tool

If you’re active-duty and thinking about buying a home in San Antonio, chances are you’re asking some version of the same question I hear all the time:

“Can we actually afford to buy here using our BAH?”

The short answer?
👉 In many cases, yes – but only if you understand how BAH really works and how it’s applied to homeownership.

With the 2026 Basic Allowance for Housing (BAH) rates officially released, now is a great time to break down what BAH is, how lenders view it, and why San Antonio continues to be one of the most BAH-friendly markets for military buyers.

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What Is BAH (and What It Isn’t)?

Basic Allowance for Housing is a non-taxable monthly allowance designed to offset the cost of housing when you’re not living in government quarters.

BAH is based on:

• Duty station (location matters a lot)
• Pay grade
• Dependency status
• Local housing market data

What BAH is not:

• A guarantee of what you should spend on housing
• Automatically equal to your mortgage payment
• A static number that applies everywhere

Understanding that difference is key when buying a home.

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2026 BAH Rates: What Changed

According to the Department of Defense, the 2026 BAH rates increased by an average of 4.2%, with approximately $29.9 billion paid to nearly one million service members.

Key highlights of the 2026 update:

• Rates take effect January 1, 2026
• Housing cost data is collected annually across 299 military housing areas
• Data sources include:
  • U.S. Census Bureau surveys
  • Bureau of Labor Statistics CPI
  • Commercial rental databases
  • Online rental listings
  • Input from local installation housing offices
• Median market rents and utilities (electricity, heat, water/sewer) are included
• Rates are calculated for:
  • Six housing profiles
  • Multiple pay grades
  • With and without dependents

Importantly, the military continues its member cost-sharing model, which means service members generally cover about 5% of national average housing costs, depending on grade and dependency status.

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One of the Most Important (and Overlooked) BAH Protections

Here’s something many buyers don’t realize:

BAH rate protection exists.

If you maintain uninterrupted BAH eligibility at a duty station, your rate will not decrease, even if local housing costs drop.

That protection matters if:

• You sign a lease
• You buy a home
• You make a long-term housing commitment

It ensures service members aren’t penalized for market fluctuations after they’ve already committed.

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How Lenders View BAH When You’re Buying a Home

From a lending standpoint, BAH is typically treated as stable, qualifying income — especially for VA loans.

Most lenders will:

• Use your current LES
• Factor in your BAH as part of gross income
• Consider projected BAH if you’re PCSing (depending on lender and documentation)

What matters most:

• Working with a lender who understands military pay
• Coordinating timing between orders, LES updates, and underwriting

This is where having a PCS-savvy lender and agent working together makes a big difference.

If you’re PCSing and trying to plan ahead before official orders arrive, timing matters more than most buyers realize.
How to Buy a Home Before PCS Orders Drop

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Why San Antonio Is Especially BAH-Friendly

San Antonio stands out for military buyers for several reasons:

• Multiple installations under JBSA (Lackland, Fort Sam Houston, Randolph, Camp Bullis)
• A wide range of housing price points
• Strong resale demand driven by constant military and civilian relocation
• Neighborhoods that align well with typical BAH amounts for many pay grades

In many parts of San Antonio, buyers can:

• Purchase a home with a payment close to (or below) their BAH
• Build equity instead of renting
• Maintain flexibility for future PCS moves

This doesn’t mean every home fits every BAH – but it does mean smart options exist.

San Antonio’s steady, year-round demand – driven in part by military relocation – plays a big role in how BAH stretches here compared to other markets.
See the latest San Antonio market update.

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Common BAH Mistakes I See Military Buyers Make

Even strong buyers can run into trouble if BAH isn’t used strategically.

Common pitfalls include:

• Treating BAH as the maximum they should spend
• Forgetting about property taxes and insurance (especially in Texas)
• Not planning for utilities and maintenance
• Assuming BAH will automatically cover every expense
• Waiting too long to talk to a lender

BAH should support your housing plan – not stretch it to the breaking point.

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How to Check Your 2026 BAH Rate

For the most accurate, up-to-date numbers, use the official Department of Defense calculator:

👉 BAH Rate Lookup Tool:
https://www.travel.dod.mil/Allowances/Basic-Allowance-for-Housing/BAH-Rate-Lookup/

This tool allows you to:

• Select your pay grade
• Choose with or without dependents
• View rates specific to your duty station

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The Bottom Line

BAH can be a powerful tool for homeownership, especially in San Antonio, when it’s understood and applied correctly.

With the 2026 rate increases, continued rate protection, and San Antonio’s relatively accessible housing market, many military families find that buying a home here is both realistic and strategic.

The key is aligning:

• Your BAH
• Your long-term goals
• Your PCS timeline
• Your full monthly housing costs

– not just chasing a number on paper.

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If you’re considering buying a home in San Antonio and want to understand what your BAH can realistically support, I’m happy to walk through it with you. Schedule a buyer consultation and let’s build a plan that works for your budget, your timeline, and your next PCS.