How to Use Your 2026 BAH Allowance to Buy a Home on Oahu

What is the Basic Allowance for Housing?

Basic Allowance for Housing, or BAH, is a monthly, tax-free benefit provided to eligible United States service members to help cover the cost of housing when government homes are not available. While many service members use their BAH to pay rent, it can also be used to purchase a home.

• Location—Service members in more expensive housing markets, like Oahu, will receive a higher BAH
• Pay grade—Higher-ranking service members will receive more
• Dependent status—Service members with families will receive more

Oahu BAH Benefits in 2026

On Oahu, which is in Honolulu County, BAH for 2026 ranges from $2,598 per month for the lowest-ranking single enlisted members to $5,040 per month for the highest-ranking commissioned officers with dependents.

How BAH Can Support Homeownership on Oahu

If you plan to reside on Oahu for more than a few years, using you BAH to purchase a home can be a smart investment. Below, we break down the benefits of using your BAH to buy a home—and what you need to know before buying.

Mortgage lenders will often consider BAH as income. When BAH is included along with your base pay, it can improve your debt-to-income (DTI) ratio—a key factor in getting a mortgage approval. You may even qualify for a higher loan amount than you would otherwise.

BAH is designed to offset housing expenses, whether you rent or own. It can be used for mortgage principal and interest payments, property taxes, homeowners insurance and HOA fees, reducing your monthly out-of-pocket housing costs.

With high home prices on Oahu, adding BAH to your income can expand your buying options. Using your BAH to supplement a monthly mortgage payment could give you more options in terms of how close you are to your base, the size of your home, or your preferred school district.

Important Considerations for Using BAH to Buy a Home

If you're thinking about using your BAH to buy a home on Oahu, there are a few important things to consider.

BAH is based on local rents—not your actual mortgage payment. Depending on your pay grade, or if you have dependents, your BAH may not cover all of your housing costs. However, BAH can help to offset monthly expenses.

Most mortgage lenders will ask for proof of BAH when calculating income. Typically, your Leave and Earnings Statement (LES) can be used.

Not all lenders treat BAH the same way. Be sure to ask your lender how your allowance will be applied early in the pre-approval process.

The Bottom Line for Military Buyers

BAH is a powerful tool for service members looking to rent or buy a home on Oahu. When combined with base pay and a VA loan, BAH can make homeownership achievable—even in a competitive market like Oahu.

Wondering if using BAH to buy a home on Oahu makes sense for you? Locations' Military Specialist Team can help you weigh your options. A local mortgage brokerage, like Hawaii Mortgage Group, can help you to make the most of your housing allowance and VA loan benefit.

Find a Home Near Your Base

Looking for a short commute to base? Browse homes for sale near Oahu miliitary bases, or contact your Locations agent for assistance. Happy house-hunting!

• Homes Near Schofield Barracks and Wheeler
• Homes Near Joint Base Pearl Harbor and Hickam Air Force Base
• Homes Near Camp Smith
• Homes Near Barbers Point
• Homes Near Marine Corps Base Hawaii
• Homes Near Fort Shafter
• Homes Near Lualualei
• Homes Near Tripler