2026 Tennessee BAH Rates

Rates and VA Loan Buying Power

2026 Tennessee BAH Rates and VA Loan Buying Power

Primary sources:
DoD BAH Lookup

DFAS Pay and Entitlements

VA Home Loan Overview

CFPB Loan Estimate Guide

Tennessee BAH rates can directly affect VA loan buying power because BAH is tax free and many lenders count it when it is verified on your LES. Before you use the tables, make sure the lender is using the right Tennessee market, the right dependency status, and a payment target that fits your full file.

Next step:
Check VA Loan Eligibility Using Your BAH and LES

Tennessee BAH Snapshot

Nashville, Knoxville, and Memphis run above Chattanooga in your sample set, while Fort Campbell and Arnold AFB sit lower. That spread matters because buying power can shift quickly by zip, rank, and dependency status.

How Lenders Count BAH

Many VA lenders count BAH as qualifying income when it appears on your LES. Because it is tax free, some lenders also gross it up. That can improve DTI, but residual income and the full monthly payment still decide what is workable.

PCS and Rate Protection

With valid PCS orders, lenders can often use gaining station BAH when you are moving into Tennessee. Separate from that, individual rate protection can preserve a higher allowance while you stay at the same duty station with the same status.

LES and Documents

Expect lenders to review two to three LES statements, plus PCS orders when relevant. Those documents help verify continuity, current entitlements, and whether the lender used the correct Tennessee housing assumptions from the start.

Frequently Asked Questions

Can I use Tennessee BAH to qualify for a VA loan?

Yes. Many lenders count BAH as qualifying income when it appears on your LES. Because it is tax free, some lenders may also gross it up, which can improve ratios and increase VA loan buying power.

Can PCS orders change which Tennessee BAH a lender uses?

Often yes. With valid orders, a lender may qualify you using the gaining station BAH for Nashville, Memphis, Knoxville, Chattanooga, or another local market, which can materially change the payment range you can support.

Why does the Tennessee BAH table not match my loan estimate exactly?

The table is only a planning reference. Lenders also factor in debts, credit, taxes, insurance, residual income, and whether your documented BAH on the LES was grossed up, so the final estimate can differ from the chart.

How to Use Tennessee BAH Rates for a VA Loan

Pick the right table: Start with the Tennessee market that matches your duty station or likely purchase area, then match your rank and dependency status before estimating any payment.
Turn BAH into PITI target plus cushion: Use BAH as the first pass for principal, interest, taxes, and insurance, then leave room for utilities, HOA dues, repairs, and ordinary monthly variance.
Verify lender treatment using LES and gross up: Ask how the lender is counting tax free BAH from your LES, whether it is grossed up, and how that changes your real qualifying range.
Use same assumptions when shopping lenders: Keep purchase price, taxes, insurance, credit band, and occupancy plan the same so you can judge lender treatment instead of comparing mismatched scenarios.

Check VA Loan Eligibility Using Your BAH and LES
Jump to Tennessee BAH Tables

Convert Your BAH to VA Buying Power

Enter your BAH and key financials. We’ll estimate a comfortable VA home price and the resulting monthly payment.

Monthly BAH ($)

Other Gross Monthly Income (optional, $)

Monthly Debts (cards, auto, etc., $)

Target DTI % (VA often approves above 41)

Interest Rate % (APR approx.)

Term (Years)

Property Tax Rate (% of price, annual)

Homeowners Insurance Rate (% of price, annual)

HOA (Monthly, $)

Finance VA Funding Fee

Funding Fee %

Check My VA Eligibility

Explore More BAH Insights

2026 Basic Allowance for Housing (BAH) Rates by City
Official 2026 tables by city and MHA
How BAH Affects VA Loan Buying Power
How allowance converts to qualifying income and price
Military Housing Allowance (MHA) vs. BAH
Terminology and usage across DoD and lenders
How Dual Military Couples Combine BAH for a VA Loan
Categories, documentation, and joint approvals
Using BAH After Active Duty for a VA Loan
Eligibility paths, timing, documentation after separation
Top 10 Military Cities with the Highest BAH
Markets with strong allowances and typical housing costs
BAH Reserve and Transient Rates for 2026
Reserve component and partial month quick reference
BAH vs PITI Mortgage Coverage
Define coverage and calculate safe payment buffers
BAH VA Loan Buy or Rent PCS
Choose ownership or leasing around PCS timelines
BAH Gross Up VA Loan Buying Power
How lenders adjust non taxable income and DTI impact

Tennessee Housing Costs & BAH Impact

Tennessee’s housing market is considered relatively affordable, though prices have steadily risen in recent years — particularly near Nashville, Memphis, and Clarksville. In 2026, BAH increases reflected these market shifts, especially in ZIPs near Fort Campbell and NSA Mid-South. For most service members, BAH is enough to fully cover rent and utilities across much of the state, with only a few high-demand areas exceeding the allowance.

Chattanooga, TN BAH Rates (MHA: TN266)

Grade	With Dependents	Without Dependents
E01	$1,851	$1,440
E02	$1,851	$1,440
E03	$1,851	$1,440
E04	$1,851	$1,440
E05	$1,950	$1,635
E06	$2,424	$1,818
E07	$2,448	$1,851
E08	$2,457	$2,049
E09	$2,556	$2,187
W01	$2,445	$1,833
W02	$2,454	$2,046
W03	$2,466	$2,205
W04	$2,604	$2,421
W05	$2,808	$2,433
O01E	$2,451	$1,947
O02E	$2,460	$2,154
O03E	$2,634	$2,418
O01	$2,013	$1,749
O02	$2,421	$1,920
O03	$2,463	$2,253
O04	$2,880	$2,424
O05	$3,198	$2,436
O06	$3,225	$2,439
O07	$3,249	$2,460

Zip codes for Chattanooga, TN: 30726, 30736, 30742, 37302, 37304, 37308, 37315, 37341, 37343, 37350, 37351, 37363, 37373, 37377, 37379, 37384, 37401, 37402, 37403, 37404, 37405, 37406, 37407, 37408, 37409, 37410, 37411, 37412, 37414, 37415, 37416, 37419, 37421, 37422, 37424, 37450.

Knoxville, TN BAH Rates (MHA: TN267)

Grade	With Dependents	Without Dependents
E01	$1,923	$1,479
E02	$1,923	$1,479
E03	$1,923	$1,479
E04	$1,923	$1,479
E05	$2,052	$1,680
E06	$2,457	$1,842
E07	$2,553	$1,926
E08	$2,655	$2,136
E09	$2,817	$2,250
W01	$2,475	$1,890
W02	$2,598	$2,133
W03	$2,724	$2,268
W04	$2,853	$2,475
W05	$3,009	$2,577
O01E	$2,568	$2,049
O02E	$2,706	$2,226
O03E	$2,874	$2,448
O01	$2,106	$1,791
O02	$2,454	$2,013
O03	$2,721	$2,307
O04	$3,063	$2,553
O05	$3,303	$2,610
O06	$3,330	$2,706
O07	$3,357	$2,754

Zip codes for Knoxville, TN: 37701, 37705, 37710, 37716, 37717, 37721, 37737, 37754, 37769, 37777, 37801, 37802, 37803, 37804, 37806, 37828, 37830, 37831, 37849, 37853, 37878, 37882, 37886, 37901, 37902, 37909, 37912, 37914, 37915, 37916, 37917, 37918, 37919, 37920, 37921, 37922, 37923, 37924, 37927, 37928, 37929, 37930, 37931, 37932, 37933, 37934, 37938, 37939, 37940, 37950, 37995, 37996, 37997, 37998.

Memphis, TN BAH Rates (MHA: TN268)

Grade	With Dependents	Without Dependents
E01	$2,064	$1,590
E02	$2,064	$1,590
E03	$2,064	$1,590
E04	$2,064	$1,590
E05	$2,208	$1,800
E06	$2,319	$1,932
E07	$2,337	$2,067
E08	$2,346	$2,235
E09	$2,376	$2,253
W01	$2,334	$2,025
W02	$2,343	$2,232
W03	$2,355	$2,262
W04	$2,397	$2,307
W05	$2,493	$2,319
O01E	$2,340	$2,205
O02E	$2,349	$2,250
O03E	$2,409	$2,304
O01	$2,229	$1,917
O02	$2,316	$2,163
O03	$2,352	$2,271
O04	$2,523	$2,310
O05	$2,664	$2,322
O06	$2,688	$2,325
O07	$2,706	$2,343

Zip codes for Memphis, TN: 37501, 37544, 38002, 38004, 38011, 38014, 38015, 38016, 38017, 38018, 38019, 38023, 38027, 38028, 38029, 38049, 38053, 38054, 38055, 38058, 38071, 38083, 38088, 38101, 38103, 38104, 38105, 38106, 38107, 38108, 38109, 38111, 38112, 38113, 38114, 38115, 38116, 38117, 38118, 38119, 38120, 38122, 38124, 38125, 38126, 38127, 38128, 38130, 38131, 38132, 38133, 38134, 38135, 38136, 38137, 38138, 38139, 38141, 38145, 38148, 38150, 38151, 38152, 38157, 38159, 38161, 38163, 38166, 38167, 38168, 38173, 38174, 38175, 38177, 38181, 38182, 38183, 38184, 38186, 38187, 38188, 38190, 38193, 38194, 38197.

Nashville, TN BAH Rates (MHA: TN269)

Grade	With Dependents	Without Dependents
E01	$2,133	$1,746
E02	$2,133	$1,746
E03	$2,133	$1,746
E04	$2,133	$1,746
E05	$2,265	$1,905
E06	$2,652	$2,007
E07	$2,682	$2,136
E08	$2,712	$2,346
E09	$2,799	$2,454
W01	$2,670	$2,097
W02	$2,697	$2,343
W03	$2,739	$2,469
W04	$2,823	$2,652
W05	$2,931	$2,688
O01E	$2,685	$2,262
O02E	$2,730	$2,430
O03E	$2,838	$2,643
O01	$2,319	$1,995
O02	$2,649	$2,226
O03	$2,736	$2,511
O04	$2,967	$2,676
O05	$3,129	$2,691
O06	$3,156	$2,718
O07	$3,180	$2,766

Zip codes for Nashville, TN: 37011, 37013, 37014, 37024, 37027, 37037, 37046, 37060, 37062, 37063, 37064, 37065, 37067, 37068, 37069, 37070, 37072, 37076, 37080, 37085, 37086, 37089, 37115, 37116, 37118, 37127, 37128, 37129, 37130, 37131, 37132, 37133, 37135, 37138, 37153, 37167, 37179, 37189, 37201, 37202, 37203, 37204, 37205, 37206, 37207, 37208, 37209, 37210, 37211, 37212, 37213, 37214, 37215, 37216, 37217, 37218, 37219, 37220, 37221, 37222, 37224, 37227, 37228, 37229, 37230, 37232, 37234, 37235, 37236, 37238, 37240, 37241, 37242, 37243, 37244, 37246, 37250, 38476.

Johnson City/Kingsport, TN BAH Rates (MHA: TN353)

Grade	With Dependents	Without Dependents
E01	$1,407	$1,101
E02	$1,407	$1,101
E03	$1,407	$1,101
E04	$1,407	$1,101
E05	$1,485	$1,242
E06	$1,986	$1,491
E07	$2,070	$1,554
E08	$2,157	$1,617
E09	$2,307	$1,734
W01	$2,007	$1,506
W02	$2,106	$1,587
W03	$2,217	$1,755
W04	$2,343	$2,004
W05	$2,499	$2,091
O01E	$2,082	$1,563
O02E	$2,202	$1,701
O03E	$2,364	$1,980
O01	$1,551	$1,326
O02	$1,983	$1,557
O03	$2,214	$1,806
O04	$2,553	$2,070
O05	$2,793	$2,115
O06	$2,817	$2,196
O07	$2,838	$2,235

Zip codes for Johnson City/Kingsport, TN: 24201, 24203, 24205, 24209, 37601, 37602, 37604, 37605, 37614, 37615, 37617, 37618, 37620, 37621, 37625, 37642, 37643, 37644, 37645, 37656, 37658, 37659, 37660, 37662, 37663, 37664, 37665, 37669, 37681, 37682, 37684, 37686, 37687, 37690, 37694, 37699, 37711, 37731, 37811, 37857, 37873.