GREAT FALLS — President Donald Trump signed the National Defense Authorization Act for fiscal year 2026 on December 18th, which means troops will get a look at the changes coming at the beginning of the year for their pay and allowances.
Military families may see a modest boost to their housing budgets in the new year, as the Department of War rolls out updated Basic Allowance for Housing, or BAH, rates for 2026.
Madison Collier reports - watch the video here:
Beginning January 1, service members nationwide will receive an average 4.2% increase in their housing allowance. The Pentagon released the updated rates on December 11, impacting nearly one million service members who rely on BAH to help cover rent and utilities.
While the increase is smaller than in recent years, it follows two consecutive average increases of 5.4% in both 2024 and 2025. In 2023, military households received a much larger average increase of 12.1% after housing costs surged nationwide.
In Great Falls, housing experts say the local rental market has remained relatively stable.
“We have a lot of positives with Great Falls being a smaller community,” said Jerica Seilstad, leasing and marketing director for J&K Property Management. “That’s very advantageous because prices don’t vary much depending on where you’re looking in town.”
Seilstad says rental prices in the area have largely leveled out.
“Rental prices are pretty flat,” she said. “They’re not really moving upwards or downwards.”
For Airmen stationed in Montana, the 2026 increase translates into real dollar amounts. According to the Defense Travel Management Office’s online BAH calculator, an Airman Basic, or E-1, with dependents currently receives $1,389 per month in housing allowance under 2025 rates. Under the proposed 2026 rates, that same Airman would receive approximately $1,539 per month, an increase of about $150.
Seilstad says that added flexibility can make a difference for military renters.
“I think that will make a positive difference for them,” she said. “That certainly opens up a few more doors.”
According to the Office of Personnel and Readiness, BAH in the local housing area is estimated to cover about 84% of rent and 16% of utility costs on average.
Even with the increase, the Department of Defense still expects service members to pay roughly 5% of housing expenses out of pocket.
Despite rising costs in recent years, Seilstad says many military families can still find housing within their allowance in Great Falls.
“I think our military is in a very good position in Great Falls to find just what they’re looking for,” she said. “There’s plenty of inventory for them.”
Most service members have the option to live either on base or off base. The updated 2026 BAH rates officially take effect January 1st, 2026.
