Pentagon Announces Cost of Living, Housing Allowance

January 14, 2026
DOD/Pentagon | On Base | Quality of Life

The Pentagon has announced the cost-of-living allowances for service members in 2026, increasing the number of service members receiving the payments by 66,000, up to 127,000 total, Air & Space Forces Magazine reported. The increase will nearly double the cost of the program, spending $99 million compared to $51 million in 2025. 

The Pentagon also announced 2026’s Basic Housing Allowance rates, which has an average increase of 4.2%, below last year’s 5.4%. The allowance varies by location, pay grade and dependents, and can be calculated using the Defense Department’s BAH calculator. 

Army photo by Scott Sturkol 

January 14, 2026
DOD/Pentagon | On Base | Quality of Life

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