2026 Kentucky BAH Rates by Base, Rank, and Dependents
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2026 Kentucky BAH Rates

Rates and VA Loan Buying Power

2026 Kentucky BAH Rates and VA Loan Buying Power

Written by: NMLS#151017Written by: (NMLS 151017)
Reviewed by: VA Loan Network Editorial Team, Editorial Team
Updated on
Primary sources:
DoD BAH Lookup

VA Home Loan Overview

Kentucky has 6 Military Housing Areas. E-5 with-dependents BAH ranges from $1,365 to $1,989 per month; E-6 with dependents ranges from $1,815 to $2,274. Buying-power assumptions are stated below the table.


Next step:
Check Your VA Loan Eligibility

Table 1. Kentucky Military Housing Areas at a glance
MHA E-5 w/dep E-6 w/dep E-6 buying power
FORT CAMPBELL, KY $1,815 $2,100 ~$230,000
LEXINGTON, KY $1,875 $2,151 ~$235,000
LOUISVILLE, KY $1,989 $2,274 ~$250,000
FORT KNOX, KY $1,647 $2,136 ~$235,000
FRANKFORT, KY $1,410 $1,815 ~$200,000
PADUCAH, KY $1,365 $1,875 ~$205,000

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Step 1 of 6 Your BAH
STEP 01 · YOUR BAH
What's your monthly BAH?

Find it on your LES, listed as "BAH" in entitlements. Or pick your state below to find a base.

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STEP 02 · DEPENDENTS
Do you have dependents?

Spouse, children, or other qualifying dependents. Affects lender qualification.

STEP 03 · CREDIT RANGE
Roughly, where's your credit?

No exact number needed. Many VA lenders go below 580, most banks won't tell you that.

680+
Strong VA rates · Most lenders
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STEP 04 · TIMELINE
When are you thinking of buying?
YOUR BUYING POWER
Your BAH buys you a home worth this much.
ESTIMATED HOME PRICE
$0

With $0 down and your VA benefit

▸Estimated VA rate
—
▸Down payment
$0
▸Funding fee (financed)
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▸Estimated monthly payment
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▸BAH surplus per month
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A real specialist (not a call center) will email or call with your exact rate quote, funding fee details, and homes in your price range near your duty station. No pressure, no spam.

Kentucky BAH Snapshot

  • MHA count: 6 Military Housing Areas
  • E-5 w/dep range: $1,365 to $1,989/mo
  • E-6 w/dep range: $1,815 to $2,274/mo
  • Buying power range: ~$150,000 to ~$250,000

How BAH Counts for VA Loans

  • Tax-free income: BAH is excluded from gross income. 26 USC 134(a) Lenders may count it at 125 percent for the debt-to-income ratio, a 25 percent gross-up. VA Pamphlet 26-7 Ch. 4, Debt-to-Income Ratio
  • LES verification: The lender must verify the BAH amount; allowances are documented on the LES. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH
  • Rate protection: The monthly BAH amount may not be reduced while the member retains uninterrupted eligibility within an area. 37 USC 403(b)(6)
  • Dependent status: The statute establishes separate rates for members with and without dependents. 37 USC 403(b)(5) With-dependents rates are higher at every grade in every MHA.

Highest BAH in Texas

  • LOUISVILLE, KY: E-6 w/dep $2,274/mo, ~$250,000 buying power
  • LEXINGTON, KY: E-6 w/dep $2,151/mo, ~$235,000 buying power
  • FORT KNOX, KY: E-6 w/dep $2,136/mo, ~$235,000 buying power
  • FORT CAMPBELL, KY: E-6 w/dep $2,100/mo, ~$230,000 buying power

Lowest BAH in Texas

  • FRANKFORT, KY: E-6 w/dep $1,815/mo, ~$200,000 buying power
  • PADUCAH, KY: E-6 w/dep $1,875/mo, ~$205,000 buying power
  • FORT CAMPBELL, KY: E-6 w/dep $2,100/mo, ~$230,000 buying power
  • FORT KNOX, KY: E-6 w/dep $2,136/mo, ~$235,000 buying power

The Bottom Line Up Front

Kentucky BAH rates vary by more than $459 per month at E-6 with dependents. The highest rate is $2,274 (LOUISVILLE, KY) and the lowest is $1,815 (FRANKFORT, KY). That spread translates to a buying-power difference of roughly $50,000 at current VA loan terms.

How to Use Kentucky BAH Rates for a VA Loan

  • Verify your BAH on your LES. The lender must verify the BAH amount before counting it as income. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH
  • Confirm your MHA. Your BAH is set by the Military Housing Area assigned to your duty station, not your home address. 37 USC 403(b)(2)
  • Ask about the gross-up. Because BAH is tax free, lenders may count it at 125 percent for the debt-to-income ratio. VA Pamphlet 26-7 Ch. 4, Debt-to-Income Ratio
  • Compare the buying-power estimates. Use the table above to see how your MHA and rank translate to an approximate home price, then get a personalized preapproval from a VA lender.

What to Do Based on Your Situation

  • PCS-ing to Kentucky: Your BAH changes to the gaining station’s MHA rate. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH Use the new rate with your orders to start a preapproval before you arrive.
  • Already stationed in Kentucky: Your BAH amount may not be reduced while you retain uninterrupted eligibility within the area, even if published rates drop. 37 USC 403(b)(6)
  • Separating from service: BAH stops when active-duty status ends. If you plan to buy before separation, verify the BAH amount on your current LES and close while you are still receiving it. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH

Kentucky Housing Costs and BAH Impact

Kentucky offers some of the most affordable housing in the country, especially near Fort Knox, Fort Campbell, and Elizabethtown. In many ZIP codes, housing allowances now fully cover rent and utilities. Military families in Kentucky benefit from stable housing support and typically lower out-of-pocket costs than those in more expensive states.

BAH is one piece of the income picture. When you apply for a VA loan, the lender evaluates your debt-to-income ratio and residual income alongside your housing allowance. Because BAH is excluded from gross income, lenders may count it at 125 percent for the debt-to-income ratio. 26 USC 134(a) VA Pamphlet 26-7 Ch. 4, Debt-to-Income Ratio

For a broader look at homebuying in this state, see the Kentucky VA loan guide.

Explore More BAH Insights

Kentucky BAH Rates by Military Housing Area

Each block below holds the full pay-grade table, buying power by rank, and, when available, ZIP codes. Buying power assumes 6.5 percent rate, 30-year term, 2.15 percent VA funding fee financed, zero down payment, Kentucky property tax at 0.72 percent (2023 ACS), homeowners insurance at 0.64 percent of home value (2022 III/NAIC), and PITI capped at 83 percent of BAH with dependents (VALN assumption, not a VA or DoD rule).

FORT CAMPBELL, KY (MHA KY106): E-5 w/dep $1,815, E-6 w/dep $2,100, ~$230,000 buying power

FORT CAMPBELL, KY BAH Rates

Table 2. 2026 BAH rates for FORT CAMPBELL, KY
Grade With Dependents Without Dependents
E-1 $1,743 $1,470
E-2 $1,743 $1,470
E-3 $1,743 $1,470
E-4 $1,743 $1,470
E-5 $1,815 $1,593
E-6 $2,100 $1,671
E-7 $2,244 $1,743
E-8 $2,400 $1,878
E-9 $2,580 $1,956
W-1 $2,121 $1,731
W-2 $2,307 $1,875
W-3 $2,499 $1,968
W-4 $2,610 $2,130
W-5 $2,751 $2,277
O-1E $2,271 $1,812
O-2E $2,472 $1,938
O-3E $2,634 $2,091
O-1 $1,857 $1,668
O-2 $2,097 $1,794
O-3 $2,496 $1,995
O-4 $2,793 $2,250
O-5 $3,006 $2,334
O-6 $3,030 $2,478
O-7 $3,048 $2,520

FORT CAMPBELL, KY Buying Power

  • E-5 w/dep ($1,815): ~$200,000 home, PITI ~$1,518/mo
  • E-6 w/dep ($2,100): ~$230,000 home, PITI ~$1,746/mo
  • E-7 w/dep ($2,244): ~$245,000 home, PITI ~$1,860/mo
  • O-3 w/dep ($2,496): ~$275,000 home, PITI ~$2,087/mo
LEXINGTON, KY (MHA KY107): E-5 w/dep $1,875, E-6 w/dep $2,151, ~$235,000 buying power

LEXINGTON, KY BAH Rates

Table 3. 2026 BAH rates for LEXINGTON, KY
Grade With Dependents Without Dependents
E-1 $1,713 $1,284
E-2 $1,713 $1,284
E-3 $1,713 $1,284
E-4 $1,713 $1,284
E-5 $1,875 $1,440
E-6 $2,151 $1,611
E-7 $2,172 $1,716
E-8 $2,190 $1,938
E-9 $2,304 $2,010
W-1 $2,169 $1,668
W-2 $2,178 $1,935
W-3 $2,208 $2,022
W-4 $2,343 $2,148
W-5 $2,514 $2,172
O-1E $2,175 $1,872
O-2E $2,196 $1,995
O-3E $2,370 $2,142
O-1 $1,917 $1,545
O-2 $2,148 $1,824
O-3 $2,205 $2,049
O-4 $2,571 $2,160
O-5 $2,841 $2,175
O-6 $2,862 $2,181
O-7 $2,880 $2,217

LEXINGTON, KY Buying Power

  • E-5 w/dep ($1,875): ~$205,000 home, PITI ~$1,556/mo
  • E-6 w/dep ($2,151): ~$235,000 home, PITI ~$1,784/mo
  • E-7 w/dep ($2,172): ~$240,000 home, PITI ~$1,822/mo
  • O-3 w/dep ($2,205): ~$240,000 home, PITI ~$1,822/mo
LOUISVILLE, KY (MHA KY109): E-5 w/dep $1,989, E-6 w/dep $2,274, ~$250,000 buying power

LOUISVILLE, KY BAH Rates

Table 4. 2026 BAH rates for LOUISVILLE, KY
Grade With Dependents Without Dependents
E-1 $1,809 $1,377
E-2 $1,809 $1,377
E-3 $1,809 $1,377
E-4 $1,809 $1,377
E-5 $1,989 $1,533
E-6 $2,274 $1,704
E-7 $2,316 $1,815
E-8 $2,364 $2,052
E-9 $2,487 $2,127
W-1 $2,292 $1,758
W-2 $2,334 $2,049
W-3 $2,397 $2,139
W-4 $2,523 $2,277
W-5 $2,679 $2,325
O-1E $2,322 $1,986
O-2E $2,385 $2,109
O-3E $2,547 $2,265
O-1 $2,031 $1,626
O-2 $2,271 $1,932
O-3 $2,394 $2,166
O-4 $2,730 $2,310
O-5 $2,973 $2,331
O-6 $2,997 $2,373
O-7 $3,015 $2,412

LOUISVILLE, KY Buying Power

  • E-5 w/dep ($1,989): ~$220,000 home, PITI ~$1,670/mo
  • E-6 w/dep ($2,274): ~$250,000 home, PITI ~$1,897/mo
  • E-7 w/dep ($2,316): ~$255,000 home, PITI ~$1,935/mo
  • O-3 w/dep ($2,394): ~$260,000 home, PITI ~$1,973/mo
FORT KNOX, KY (MHA KY110): E-5 w/dep $1,647, E-6 w/dep $2,136, ~$235,000 buying power

FORT KNOX, KY BAH Rates

Table 5. 2026 BAH rates for FORT KNOX, KY
Grade With Dependents Without Dependents
E-1 $1,575 $1,350
E-2 $1,575 $1,350
E-3 $1,575 $1,350
E-4 $1,575 $1,350
E-5 $1,647 $1,443
E-6 $2,136 $1,602
E-7 $2,241 $1,680
E-8 $2,352 $1,764
E-9 $2,505 $1,893
W-1 $2,157 $1,617
W-2 $2,286 $1,746
W-3 $2,424 $1,911
W-4 $2,538 $2,157
W-5 $2,679 $2,265
O-1E $2,259 $1,695
O-2E $2,403 $1,860
O-3E $2,559 $2,130
O-1 $1,710 $1,503
O-2 $2,133 $1,683
O-3 $2,421 $1,956
O-4 $2,724 $2,241
O-5 $2,943 $2,301
O-6 $2,964 $2,403
O-7 $2,985 $2,442

FORT KNOX, KY Buying Power

  • E-5 w/dep ($1,647): ~$180,000 home, PITI ~$1,366/mo
  • E-6 w/dep ($2,136): ~$235,000 home, PITI ~$1,784/mo
  • E-7 w/dep ($2,241): ~$245,000 home, PITI ~$1,860/mo
  • O-3 w/dep ($2,421): ~$265,000 home, PITI ~$2,011/mo
FRANKFORT, KY (MHA KY339): E-5 w/dep $1,410, E-6 w/dep $1,815, ~$200,000 buying power

FRANKFORT, KY BAH Rates

Table 6. 2026 BAH rates for FRANKFORT, KY
Grade With Dependents Without Dependents
E-1 $1,287 $1,011
E-2 $1,287 $1,011
E-3 $1,287 $1,011
E-4 $1,287 $1,011
E-5 $1,410 $1,104
E-6 $1,815 $1,362
E-7 $1,932 $1,449
E-8 $2,058 $1,545
E-9 $2,148 $1,611
W-1 $1,836 $1,377
W-2 $1,983 $1,491
W-3 $2,136 $1,626
W-4 $2,151 $1,839
W-5 $2,175 $1,959
O-1E $1,953 $1,464
O-2E $2,115 $1,587
O-3E $2,154 $1,809
O-1 $1,464 $1,164
O-2 $1,812 $1,452
O-3 $2,133 $1,665
O-4 $2,178 $1,935
O-5 $2,199 $2,001
O-6 $2,214 $2,115
O-7 $2,226 $2,151

FRANKFORT, KY Buying Power

  • E-5 w/dep ($1,410): ~$155,000 home, PITI ~$1,176/mo
  • E-6 w/dep ($1,815): ~$200,000 home, PITI ~$1,518/mo
  • E-7 w/dep ($1,932): ~$210,000 home, PITI ~$1,594/mo
  • O-3 w/dep ($2,133): ~$235,000 home, PITI ~$1,784/mo
PADUCAH, KY (MHA KY430): E-5 w/dep $1,365, E-6 w/dep $1,875, ~$205,000 buying power

PADUCAH, KY BAH Rates

Table 7. 2026 BAH rates for PADUCAH, KY
Grade With Dependents Without Dependents
E-1 $1,293 $1,029
E-2 $1,293 $1,029
E-3 $1,293 $1,029
E-4 $1,293 $1,029
E-5 $1,365 $1,143
E-6 $1,875 $1,407
E-7 $1,932 $1,449
E-8 $1,992 $1,494
E-9 $2,136 $1,623
W-1 $1,896 $1,422
W-2 $1,956 $1,470
W-3 $2,034 $1,641
W-4 $2,175 $1,884
W-5 $2,355 $1,944
O-1E $1,941 $1,455
O-2E $2,019 $1,587
O-3E $2,205 $1,869
O-1 $1,434 $1,215
O-2 $1,872 $1,452
O-3 $2,031 $1,689
O-4 $2,415 $1,929
O-5 $2,694 $2,022
O-6 $2,712 $2,034
O-7 $2,730 $2,049

PADUCAH, KY Buying Power

  • E-5 w/dep ($1,365): ~$150,000 home, PITI ~$1,138/mo
  • E-6 w/dep ($1,875): ~$205,000 home, PITI ~$1,556/mo
  • E-7 w/dep ($1,932): ~$210,000 home, PITI ~$1,594/mo
  • O-3 w/dep ($2,031): ~$220,000 home, PITI ~$1,670/mo

VA Loans Near Kentucky Military Bases

Kentucky BAH rates for an E-6 with dependents range from $1,815/month (FRANKFORT, KY) to $2,274/month (LOUISVILLE, KY). That translates to estimated buying power from ~$200,000 to ~$250,000 at current VA loan terms.

Frequently Asked Questions

Can I use BAH to qualify for a VA loan?

Yes. BAH is included in effective income if properly verified. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH Because BAH is tax free, lenders may count it at 125 percent for the debt-to-income ratio, a 25 percent gross-up. VA Pamphlet 26-7 Ch. 4, Debt-to-Income Ratio

Does BAH change when I PCS?

Your BAH rate is based on the MHA of your duty station. The BAH amount changes from one duty station to another. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH Rate protection means the monthly amount may not be reduced while the member retains uninterrupted eligibility within an area. 37 USC 403(b)(6)

What is the difference between with-dependents and without-dependents BAH?

The statute establishes separate rates for members with and without dependents. 37 USC 403(b)(5) With-dependents rates are higher at every grade in every MHA.

How many MHAs are in Kentucky?

Kentucky has 6 Military Housing Areas. The Secretary of Defense determines the costs of adequate housing in each area. 37 USC 403(b)(2)

Which Kentucky MHA has the highest BAH?

LOUISVILLE, KY has the highest E-6 with-dependents rate at $2,274 per month, translating to roughly $250,000 in buying power.

Which Kentucky MHA has the lowest BAH?

FRANKFORT, KY has the lowest E-6 with-dependents rate at $1,815 per month, translating to roughly $200,000 in buying power.

How is buying power calculated?

Buying power assumes 6.5 percent rate, 30-year term, 2.15 percent VA funding fee financed, zero down payment, Kentucky property tax at 0.72 percent (2023 ACS), homeowners insurance at 0.64 percent of home value (2022 III/NAIC), and PITI capped at 83 percent of BAH with dependents (VALN assumption, not a VA or DoD rule).

Is BAH the same as housing allowance on my LES?

Yes. Military allowances including BAH are documented on the LES. VA Pamphlet 26-7 Ch. 4, Analysis of Military Quarters Allowance/BAH The amount matches the published DoD rate for your MHA, grade, and dependency status.

How We Researched This Page

BAH rates are from the 2026 DoD BAH rate tables. Buying power is derived using the documented assumptions: Buying power assumes 6.5 percent rate, 30-year term, 2.15 percent VA funding fee financed, zero down payment, Kentucky property tax at 0.72 percent (2023 ACS), homeowners insurance at 0.64 percent of home value (2022 III/NAIC), and PITI capped at 83 percent of BAH with dependents (VALN assumption, not a VA or DoD rule). These figures are estimates for comparison, not loan quotes or approvals.

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