The short version: In 7 of the 23 military metros I cover, a VA loan on the typical two-to-four-unit building costs less than an E-5’s 2026 BAH with dependents plus the rent from the other unit. In 1 of them, Memphis, the allowance covers the whole payment on its own.
In 7 more the typical building does not work but the entry-priced one does, and in 9 (Miami, Phoenix, Albuquerque, Charleston, Oklahoma City, Oxnard, San Diego, Washington, DC and Wichita) neither does. Only Memphis still pays for itself as a rental after PCS orders. BAH is a yardstick here, not income a lender counts.
The ranking: where an E-5’s BAH goes furthest
Each row is a metro page with its own BAH section. The order is the E-5 break-even price as a share of the typical price: the price at which an E-5’s 2026 BAH with dependents plus the other unit’s rent exactly pays a VA loan, divided by what the typical building actually lists for.
Above 100% the typical building works with room to spare; below it, prices would have to fall that far. BAH figures are the published 2026 rates for each military housing area [1]; prices and rents are each city page’s own [5].
| # | Metro | Installation(s) | Housing area | E-5 BAH, with dependents | Typical price | VA payment, typical | BAH + rent – payment, typical | E-5 verdict, typical | Same test, entry building | E-5 break-even price | Break-even / typical | PCS test, typical |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Memphis | Naval Support Activity Mid-South (Millington) | TN268 | $2,154 | $173,000 | $1,584 | +$1,418 | BAH covers it | +$1,524 | $352,000 | 203% | +$112 |
| 2 | Virginia Beach-Norfolk | Naval Station Norfolk, Joint Expeditionary Base Little Creek-Fort Story, NAS Oceana | VA298 | $2,430 | $389,000 | $3,149 | +$717 | BAH + rent covers it | +$1,020 | $482,000 | 124% | -$277 |
| 3 | Dayton | Wright-Patterson AFB | OH231 | $1,650 | $220,000 | $2,043 | +$443 | BAH + rent covers it | +$752 | $271,000 | 123% | -$371 |
| 4 | Jacksonville | NAS Jacksonville, Naval Station Mayport | FL058 | $2,181 | $283,990 | $3,007 | +$348 | BAH + rent covers it | +$705 | $322,000 | 113% | -$659 |
| 5 | El Paso | Fort Bliss | TX279 | $1,809 | $250,000 | $2,652 | +$166 | BAH + rent covers it | +$658 | $268,000 | 107% | -$634 |
| 6 | Tampa | MacDill AFB | FL066 | $2,709 | $405,999 | $4,104 | +$215 | BAH + rent covers it | +$940 | $430,000 | 106% | -$884 |
| 7 | Spokane | Fairchild AFB | WA310 | $2,184 | $399,999 | $3,200 | +$115 | BAH + rent covers it | +$501 | $415,000 | 104% | -$938 |
| 8 | Tucson | Davis-Monthan AFB | AZ015 | $1,905 | $425,000 | $3,472 | -$479 | Does not work | +$184 | $363,000 | 85% | -$1,296 |
| 9 | Las Vegas | Nellis AFB | NV212 | $2,070 | $514,900 | $3,973 | -$633 | Does not work | +$144 | $430,000 | 84% | -$1,433 |
| 10 | New Orleans | Naval Air Station Joint Reserve Base New Orleans | LA116 | $1,905 | $389,000 | $3,676 | -$588 | Does not work | +$166 | $319,000 | 82% | -$1,310 |
| 11 | Denver | Buckley Space Force Base | CO045 | $2,841 | $700,000 | $5,602 | -$947 | Does not work | +$183 | $574,000 | 82% | -$1,974 |
| 12 | Omaha | Offutt AFB | NE192 | $2,085 | $385,000 | $3,864 | -$657 | Does not work | +$129 | $314,000 | 82% | -$1,620 |
| 13 | Miami | U.S. Southern Command (Doral), Homestead Air Reserve Base | FL061 | $3,660 | $769,900 | $6,951 | -$1,186 | Does not work | -$412 | $625,000 | 81% | -$2,741 |
| 14 | San Antonio | Joint Base San Antonio (Fort Sam Houston, Lackland, Randolph) | TX285 | $1,869 | $374,000 | $3,699 | -$742 | Does not work | +$11 | $291,000 | 78% | -$1,523 |
| 15 | Phoenix | Luke AFB | AZ013 | $2,289 | $598,000 | $4,614 | -$1,024 | Does not work | -$303 | $459,000 | 77% | -$2,012 |
| 16 | Richmond | Fort Lee (Prince George County) | VA301 | $2,358 | $599,900 | $4,918 | -$1,124 | Does not work | +$262 | $458,000 | 76% | -$2,046 |
| 17 | Albuquerque (thin sample) | Kirtland AFB | NM206 | $2,211 | $479,990 | $4,314 | -$973 | Does not work | -$676 | $364,000 | 76% | -$2,054 |
| 18 | Charleston | Joint Base Charleston | SC259 | $2,385 | $695,000 | $5,505 | -$1,267 | Does not work | -$366 | $526,000 | 76% | -$1,799 |
| 19 | Oklahoma City | Tinker AFB | OK239 | $1,644 | $340,000 | $3,378 | -$777 | Does not work | -$420 | $251,000 | 74% | -$1,464 |
| 20 | Oxnard | Naval Base Ventura County (Port Hueneme, Point Mugu) | CA025 | $3,537 | $999,000 | $8,112 | -$2,304 | Does not work | -$966 | $707,000 | 71% | -$3,570 |
| 21 | San Diego | Naval Base San Diego, MCRD San Diego | CA038 | $3,975 | $1,250,000 | $10,081 | -$3,500 | Does not work | -$1,531 | $805,000 | 64% | -$4,869 |
| 22 | Washington, DC | Joint Base Anacostia-Bolling, Joint Base Myer-Henderson Hall, Fort McNair | DC053 | $3,132 | $1,130,000 | $8,538 | -$3,257 | Does not work | -$1,182 | $691,000 | 61% | -$4,240 |
| 23 | Wichita | McConnell AFB | KS101 | $1,377 | $370,000 | $3,420 | -$1,244 | Does not work | -$1,203 | $223,000 | 60% | -$1,822 |
The same test at E-6 and O-3
| Metro | E-6 BAH | E-6: BAH + rent – payment | E-6 verdict | O-3 BAH | O-3: BAH + rent – payment | O-3 verdict |
|---|---|---|---|---|---|---|
| Memphis | $2,319 | +$1,583 | BAH covers it | $2,352 | +$1,616 | BAH covers it |
| Virginia Beach-Norfolk | $2,559 | +$846 | BAH + rent covers it | $2,694 | +$981 | BAH + rent covers it |
| Dayton | $1,851 | +$644 | BAH + rent covers it | $2,097 | +$890 | BAH covers it |
| Jacksonville | $2,241 | +$408 | BAH + rent covers it | $2,364 | +$531 | BAH + rent covers it |
| El Paso | $2,148 | +$505 | BAH + rent covers it | $2,202 | +$559 | BAH + rent covers it |
| Tampa | $3,042 | +$548 | BAH + rent covers it | $3,081 | +$587 | BAH + rent covers it |
| Spokane | $2,553 | +$484 | BAH + rent covers it | $2,844 | +$775 | BAH + rent covers it |
| Tucson | $2,121 | -$263 | Does not work | $2,199 | -$185 | Does not work |
| Las Vegas | $2,208 | -$495 | Does not work | $2,382 | -$321 | Does not work |
| New Orleans | $2,373 | -$120 | Does not work | $2,553 | +$60 | BAH + rent covers it |
| Denver | $3,063 | -$725 | Does not work | $3,207 | -$581 | Does not work |
| Omaha | $2,376 | -$366 | Does not work | $2,601 | -$141 | Does not work |
| Miami | $3,792 | -$1,054 | Does not work | $4,437 | -$409 | Does not work |
| San Antonio | $2,094 | -$517 | Does not work | $2,127 | -$484 | Does not work |
| Phoenix | $2,457 | -$856 | Does not work | $2,490 | -$823 | Does not work |
| Richmond | $2,628 | -$854 | Does not work | $2,760 | -$722 | Does not work |
| Albuquerque | $2,328 | -$856 | Does not work | $2,397 | -$787 | Does not work |
| Charleston | $2,616 | -$1,036 | Does not work | $2,721 | -$931 | Does not work |
| Oklahoma City | $1,854 | -$567 | Does not work | $1,974 | -$447 | Does not work |
| Oxnard | $4,008 | -$1,833 | Does not work | $4,212 | -$1,629 | Does not work |
| San Diego | $4,404 | -$3,071 | Does not work | $4,518 | -$2,957 | Does not work |
| Washington, DC | $3,759 | -$2,630 | Does not work | $4,020 | -$2,369 | Does not work |
| Wichita | $1,689 | -$932 | Does not work | $1,938 | -$683 | Does not work |
How I built every row
The building: each metro’s typical price is the median asking price of the two-to-four-unit listings that passed the Foothold screen, June to August 2026 [5], treated as a duplex: you live in one unit and rent the other. The entry building is the 25th percentile.
The VA payment: no down payment. The funding fee on a first use with less than 5% down is 2.15% [2], and “You can pay it at closing or roll it into the loan” [3]; I roll it in. Principal and interest at 6.71% over 30 years [6], with no monthly mortgage insurance [3][10].
On top of that go property tax at the metro’s county effective rate and insurance, both the same estimates the city pages use.
The other unit: the lower of HUD’s FY2026 small-area fair market rent for a two-bedroom (the median across the ZIPs where the listings sit) [7] and Zumper’s two-bedroom asking rent [8], counted after a 5% vacancy and 8% maintenance allowance.
The verdicts: “BAH covers it” when the allowance is at least the payment; “BAH + rent covers it” when the allowance plus the other unit’s net rent is; otherwise “Does not work”. The PCS test rents both units after you move and compares that rent, after the same 13%, with the payment; property management is not modeled. Break-even prices are solved on the same payment formula, to the nearest $1,000.
The BAH: 2026 rates, effective January 1, 2026, with dependents, for the military housing area each metro’s listings sit in [1]. A member who keeps uninterrupted BAH eligibility at one location “will not see a rate decrease” [4]. I re-run every row the day the 2027 rates post.
You also “must personally occupy one of them as your home” [3][10]. Some borrowers pay no funding fee, including those receiving VA compensation for a service-connected disability [2].
Military towns not on this list, and why
Some metros have a base nearby, but the base sits in a different BAH housing area from the neighborhoods these prices describe, so the allowance and the building would describe different places [1]. I leave them out rather than mix them:
- Seattle: Joint Base Lewis-McChord, housing area TACOMA, WA (WA311).
- Baltimore: Fort Meade; Aberdeen Proving Ground, housing area FORT G. G. MEADE (MD133); ABERDEEN PROVING GROUNDS (MD127).
- St. Louis: Scott AFB, housing area SCOTT AFB, IL (IL093).
- Chicago: Naval Station Great Lakes, housing area GREAT LAKES NAVTRACEN, IL (IL092).
- Providence: Naval Station Newport, housing area NEWPORT, RI (RI256).
- Dallas: NAS JRB Fort Worth, housing area FORT WORTH, TX (TX356).
- Boston: Hanscom AFB, housing area HANSCOM AFB, MA (MA377).
- Riverside-San Bernardino: Fort Irwin; MCAGCC Twentynine Palms, housing area BARSTOW/FORT IRWIN (CA028); TWENTY NINE PALMS MCB (CA032).
- Kansas City: Fort Leavenworth, housing area FORT LEAVENWORTH, KS (KS102).
- Louisville: Fort Knox, housing area FORT KNOX, KY (KY110).
- Nashville: Fort Campbell, housing area FORT CAMPBELL, KY (KY106).
Base towns outside the 83 metros I track, such as Fayetteville for Fort Bragg or Killeen for Fort Hood, need their own listing pull first.
Questions people ask
Where does BAH cover a duplex in 2026?
On this model, the 2026 BAH of an E-5 with dependents covers the whole VA payment on the typical two-to-four-unit building in Memphis. Adding the other unit’s rent, it also covers the typical building in Virginia Beach-Norfolk, Dayton, Jacksonville, El Paso, Tampa and Spokane. That is 7 of the 23 military metros covered.
Can I use BAH to qualify for a VA loan on a duplex?
This page uses BAH only as a benchmark for what housing money a place and grade come with; it is not a statement of what a lender will count. For the rent, the VA counts 75 percent of the lease by default and asks for six months of reserves and documented landlord experience.
What is the PCS test?
It asks whether the building still pays for itself as a rental after you move: both units rented, less 13% for vacancy and maintenance, against the same VA payment. Only Memphis passes on the typical building, of the 23 metros covered.
Which BAH rates does this use?
2026 Basic Allowance for Housing, with dependents, effective January 1, 2026, for the military housing area the listings sit in. Every row is re-run when the 2027 rates post.
Sources & Methodology
- Defense Travel Management Office, BAH rate lookup: 2026 Basic Allowance for Housing, with dependents, effective January 1, 2026, for the 23 housing areas in the table. Checked September 28, 2026 against DTMO’s 2026 rate file (BAH-ASCII-2026.zip); the published copies at MilitaryCalc and VetCalc agree on every figure used, and each city page names them for its housing area.
- U.S. Department of Veterans Affairs, VA funding fee and closing costs: 2.15% on a first use with less than 5% down; exemptions (page last updated September 22, 2026).
- VanToVault, Using a VA Loan on a Duplex or Fourplex: occupancy, the 75% lease rule, six months of reserves, documented landlord experience, no monthly mortgage insurance, paying the funding fee at closing or in the loan.
- Department of War release, 2026 Basic Allowance for Housing rates, as posted by Joint Base San Antonio (effective January 1, 2026; the rate-protection rule).
- VanToVault, Foothold Index data and the Foothold method: Realtor.com and Movoto two-to-four-unit listings, June to August 2026, screened; typical (median) and entry (25th percentile) prices; county effective property-tax rates (estimates).
- Freddie Mac, Primary Mortgage Market Survey, 30-year fixed: 6.71%, week of September 3, 2026.
- HUD, FY2026 Small Area Fair Market Rents (revised), two-bedroom, median across the ZIPs where surviving listings sit.
- Zumper, two-bedroom asking rent by metro, month shown on each city page (mid-2026).
- Insurify, average annual home insurance premium by state, $300,000 dwelling, $1,000 deductible, updated July 15, 2026; scaled in the Foothold model by 1.71 x the square root of price / $300,000.
- U.S. Department of Veterans Affairs, Purchase loan: a VA-backed purchase loan can be used to “Buy a single-family home, up to 4 units”, you “will live in the home you’re buying with the loan”, and there is “No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)” (page last updated January 7, 2026; read September 29, 2026).
Figures are model estimates for comparison at a 6.71% rate on listings from June to August 2026, not an appraisal, a loan quote or an insurance quote. By Stephan D. Generated September 27, 2026.
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