2026 BAH Rates for Fort Knox, KY

Last updated: February 2026

Basic Allowance for Housing (BAH) is the monthly stipend the military pays service members to cover housing costs when government quarters are not provided. For Fort Knox, the 2026 BAH rates increased approximately 7.2% over 2025 rates, reflecting rising housing costs in the region. The rates below apply to ZIP codes 40121 (Fort Knox), 40160 (Radcliff), and 42701 (Elizabethtown).

2026 BAH Rate Table — Fort Knox

The following table shows estimated 2026 monthly BAH rates for Fort Knox by pay grade, with and without dependents. Rates are based on DOD calculations for the Fort Knox MHA (Military Housing Area).

* Rates shown are estimates based on DOD BAH calculation methodology and may vary slightly from final published rates. Confirm your exact rate through your finance office or the DOD BAH calculator. Highlighted rows show the most commonly referenced ranks.

BAH vs Actual Housing Costs in the Fort Knox Area

Here is the math that makes the Fort Knox area one of the best duty stations for homeownership: your BAH often covers your entire mortgage payment, including principal, interest, taxes, and insurance (PITI). In many other duty station markets — think Fort Liberty, JBLM, or any base near a major metro — BAH barely covers rent, let alone a mortgage.

Consider a typical scenario. An E-5 with dependents receives approximately $1,647/month in BAH. The median home price in Elizabethtown is roughly $250,000. With a VA loan at zero down and a 6.5% interest rate, the estimated monthly PITI on a $250,000 home is approximately $1,500-$1,600. That E-5's BAH covers the payment with room to spare — and they are building equity instead of paying rent.

At the O-3 level with dependents ($2,421/month), the picture is even more comfortable. You can afford homes in the $325,000-$380,000 range while still having BAH cover the full PITI. At the O-5 level ($2,943/month), you're looking at homes up to $450,000+ with BAH fully covering the mortgage.

Using BAH Toward a Mortgage vs Rent

This is one of the most important financial decisions you'll make at each duty station. When you rent, your entire BAH goes to a landlord and you build zero equity. When you buy with a VA loan, your BAH goes toward your own mortgage — and a portion of every payment builds equity in an asset you own.

At Fort Knox, the numbers strongly favor buying if your tour is 3 years or longer. Here's why:

• VA loans require $0 down, so you don't need savings to get started.
• BAH covers the full mortgage in most Elizabethtown and Radcliff neighborhoods at most ranks.
• Hardin County home values have appreciated steadily — roughly 4-6% annually in recent years. A $250,000 home could be worth $280,000-$290,000 in three years.
• If you PCS before selling, you can rent the property out. The Fort Knox area has strong rental demand from incoming military families, making it a viable investment property.
• Tax benefits — mortgage interest is deductible, and military personnel have favorable capital gains treatment on primary residences even with PCS-related absences.

Renting still makes sense for short tours (under 2 years) or if you're uncertain about your plans. Average rents in off-post communities range from $900-$1,300 per month for a 3-bedroom home, leaving some BAH left over at mid-to-senior enlisted and officer ranks.

Fort Knox BAH ZIP Codes

BAH is calculated based on the duty station ZIP code, not where you live off-post. For Fort Knox, the Department of Defense uses the following ZIP codes in the Military Housing Area (MHA) calculation:

• 40121 — Fort Knox proper
• 40160 — Radcliff
• 42701 — Elizabethtown

Regardless of whether you choose to live in Elizabethtown, Radcliff, Vine Grove, Brandenburg, or anywhere else in the region, your BAH rate remains the same. It's based on your duty station assignment to Fort Knox, not your personal address.