2026 BAH Rates in Montgomery, Alabama: What Military Families Should Know

by Britt Dowling

If you’re military and planning a move in 2026, your Basic Allowance for Housing (BAH) just got more important.

The Department of Defense released 2026 BAH rates, and for most service members, allowances increased again this year. Nationwide, the average bump is around 4.2%, though the exact number depends on rank, dependency status, and duty station

For families headed to Montgomery, Alabama, that matters—especially with steady demand near Maxwell and Gunter.

What Changed With 2026 BAH?

BAH is updated every year based on real rental and utility data. For 2026:

Most duty stations saw increases
Some areas went up more than others depending on rent trends
Rate protection still applies
If you’re not PCSing, your BAH won’t drop even if local rates soften

That protection gives military families some breathing room when planning housing.

Why BAH Matters So Much in Montgomery

Montgomery is generally more affordable than many military markets, but prices still vary a lot depending on location.

Areas closer to Maxwell Air Force Base, Gunter Annex, Pike Road, and Prattville all come with different price points, commute times, and housing options.

BAH directly affects:

Whether renting or buying makes more sense
How much house you can realistically afford
How far you’ll need to commute
Whether you can stay under budget without stretching monthly costs

Even a small change in allowance can shift what neighborhoods make sense.

Renting vs Buying With 2026 BAH

This is where I see a lot of families pause.

Some service members use BAH strictly as rent money. Others use it to support a mortgage—especially in Montgomery, where home prices are still reasonable compared to many duty stations.

A few things to think about:

Monthly payment vs. BAH amount
How long you expect to be stationed here
Whether you want flexibility or stability
Potential resale or rental options later

There’s no one right answer. It depends on your timeline and comfort level.

How to Check Your 2026 BAH

The easiest way to confirm your exact number is by using a BAH calculator. You’ll need:

Pay grade
Dependency status
Duty station ZIP code

That gives you a realistic monthly housing number to plan around.

A Note on OCONUS Allowances

If you’re heading overseas instead, BAH doesn’t apply.

OCONUS assignments use Overseas Housing Allowance (OHA), which works differently:

Based on actual rent (up to a cap)
Adjusted more often
Influenced by currency changes

Some overseas locations also receive COLA, which can change throughout the year.

What I’m Seeing Locally in Montgomery

Working daily with military buyers and renters, here’s what’s common right now:

Strong interest in east Montgomery, Pike Road, and Prattville
Tight rental inventory in certain price ranges
More buyers asking whether BAH can support ownership instead of renting

That’s why knowing your exact 2026 BAH number early helps—especially before PCS season heats up.

Bottom Line

2026 BAH increases give military families more clarity, but smart housing choices still come down to planning.

If you’re relocating to Montgomery or already here and weighing your options, having a local game plan matters.

If you want help breaking down neighborhoods, rent vs buy numbers, or commute trade-offs near base, reach out anytime. Helping military families land in the right spot around Montgomery is what I do every day.