2026 BAH Rates for Madison, WI
Madison sits in a military housing area, the group of 54 ZIP codes the Defense Department treats as one market when it sets BAH, so everyone stationed here draws the same rate for their pay grade. The Defense Travel Management Office labels this one WI316. Rates below are monthly and effective January 1, 2026. An E-5 with dependents receives $2,655/month here, against a local 3-bedroom renting for $2,236.
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What housing costs in Madison
Typical rent and typical purchase price by size, next to your allowance, so you can budget before you start packing.
| Size | Typical rent | Typical price to buy | Monthly cost to own |
|---|---|---|---|
| 1-bedroom | $1,482+$1,173 | $234,240 | $2,065+$590 |
| 2-bedroom | $1,694+$961 | $327,078 | $2,884−$229 |
| 3-bedroom | $2,236+$419 | $448,879 | $3,957−$1,302 |
| 4-bedroom | $2,509+$146 | $548,847 | $4,839−$2,184 |
Your BAH covers a 4-bedroom rental, or a 1-bedroom purchase.
The small figure next to each price is that cost measured against your BAH of $2,655/mo (E-5 with dependents).
+ green = your allowance covers it, with that much left over each month− red= the allowance falls short, and you'd pay that much out of pocket
A dash means we don't have enough local data to publish a reliable figure for that size.
Should you buy or rent in Madison?
Your BAH and local prices are filled in. Change anything that doesn't match your situation.
How long will you be there?
When you PCS, you would
Loan
Change the numbers
Prices start from the typical home in Madison and the local rent for a 3-bedroom. Property tax uses the WI average.
RentE-5, with dependents, 3 years, VA loan, sell at PCS
If you sell after 3 years, buying costs about $65,144 more than renting.
Buying only pulls ahead after 15 years, longer than your time here.
Your BAH
$2,655/mo
Rent
$2,236/mo
HUD's 2026 rent for a 3-bedroom here
$419 under your BAH
Own, all-in
$4,272/mo
$1,617 over your BAH
What each choice costs you, year by year
Buying counts closing costs, every payment, taxes, insurance and upkeep, minus what you'd walk away with after selling. Lower is better.
Every month, against your BAH
Hover or tap Own to see what makes up the payment.
See the numbers by year
| Year | Buying, then selling | Renting | Ahead |
|---|---|---|---|
| 1 | $85,699 | $26,832 | Rent by $58,867 |
| 2 | $117,055 | $54,469 | Rent by $62,586 |
| 3 (you PCS) | $148,079 | $82,935 | Rent by $65,144 |
| 4 | $178,748 | $112,255 | Rent by $66,493 |
| 5 | $209,039 | $142,455 | Rent by $66,584 |
| 6 | $238,925 | $173,560 | Rent by $65,365 |
| 7 | $268,380 | $205,599 | Rent by $62,781 |
| 8 | $297,374 | $238,599 | Rent by $58,775 |
| 9 | $325,876 | $272,589 | Rent by $53,287 |
| 10 | $353,855 | $307,599 | Rent by $46,256 |
Assumes a 30-year VA loan, 2% closing costs, 7% to sell, insurance at 0.5% and upkeep at 1% of the home's value a year, and home values and rents both rising 3% a year. As a rental we set aside 5% of rent for empty months. Cash at closing: $9,692. Estimates for planning, not a loan offer.
Home values, past year
+2.6%
Past 3 years, annualized
+3.8%
Where these numbers come from
Rents are 2026 HUD Fair Market Rents for the Madison, WI HUD Metro FMR Area, which HUD publishes for the whole metro area rather than by ZIP code. HUD rents include tenant-paid utilities such as electricity, gas, and water, and reflect a modest local unit rather than the top of the market.
Purchase prices are the median across the 32 of 54 ZIP codes in this housing area that Zillow publishes home values for, updated 2026-07-23. Sizes backed by fewer than three ZIP codes are left blank rather than shown as a median.
Monthly cost to own assumes a VA loan at 6% over 30 years with no down payment and the 2%funding fee financed, plus your state's average effective property tax, insurance at 1% of value per year, and maintenance at 1%. VA loans carry no mortgage insurance.
The buy-versus-rent breakeven charges buying for 2% closing costs and every monthly payment, credits it for the sale proceeds after 7% selling costs and the remaining loan balance, and compares that against rent rising 3% a year. Home values are assumed to grow 3%a year nationally rather than at this area's recent local rate.
Estimates for planning, not a lending offer. Your rate, taxes, and insurance will differ. Housing data courtesy of Zillow and HUD.
See how Madison compares to every other housing area in our 2026 BAH affordability report.
2026 BAH rate table, every pay grade
Tap a category to see its rates. Enlisted grades are open by default.
Enlisted▾
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| E-1 | $2,394 | $1,797 |
| E-2 | $2,394 | $1,797 |
| E-3 | $2,394 | $1,797 |
| E-4 | $2,394 | $1,797 |
| E-5 | $2,655 | $1,995 |
| E-6 | $2,889 | $2,166 |
| E-7 | $3,084 | $2,406 |
| E-8 | $3,297 | $2,706 |
| E-9 | $3,525 | $2,769 |
Warrant Officer▾
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| W-1 | $2,910 | $2,313 |
| W-2 | $3,171 | $2,703 |
| W-3 | $3,435 | $2,778 |
| W-4 | $3,558 | $2,931 |
| W-5 | $3,711 | $3,132 |
Officer (prior enlisted)▾
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| O-1E | $3,123 | $2,652 |
| O-2E | $3,396 | $2,754 |
| O-3E | $3,582 | $2,880 |
Officer▾
| Pay Grade | With Dependents | Without Dependents |
|---|---|---|
| O-1 | $2,691 | $2,133 |
| O-2 | $2,886 | $2,571 |
| O-3 | $3,426 | $2,799 |
| O-4 | $3,759 | $3,096 |
| O-5 | $3,993 | $3,216 |
| O-6 | $4,026 | $3,414 |
| O-7 | $4,056 | $3,474 |
| O-8 | $4,056 | $3,474 |
| O-9 | $4,056 | $3,474 |
| O-10 | $4,056 | $3,474 |
Madison BAH: Common Questions
Does BAH cover rent at Madison?
A 2-bedroom in the Madison area typically rents for $1,694/month and a 3-bedroom for $2,236/month, including utilities. An E-5 with dependents draws $2,655/month in BAH, which covers either. Use the pay grade selector on this page to see your own rate.
Is it better to buy or rent at Madison?
Buying the median $484,587 home in this area takes about 15 years to beat renting once closing costs, interest, taxes, upkeep, and selling costs are counted. If your tour is shorter than that and you don't plan to keep the home as a rental, renting is usually the lower-risk call.
How much does it cost to own a home near Madison?
The median home in this housing area is worth about $484,587. With a VA loan at 6% and no down payment, that runs roughly $4,272/month all in. That is $2,968 principal and interest, $699 property tax, and $606 insurance and upkeep.
What area does the Madison housing area cover?
The Madison military housing area, labeled WI316 in the Defense Travel Management Office tables. Covers 54 ZIP codes around Madison, Wisconsin. A military housing area is simply the group of ZIP codes the Defense Department treats as one housing market when setting BAH. Your rate is set by your duty station's location, not by where inside that area you choose to live.
When did these Madison BAH rates take effect?
These rates are effective January 1, 2026, from the official Defense Travel Management Office (DTMO) dataset. BAH rate protection means existing service members don't see decreases when new rates drop.
Other Wisconsin Military Housing Areas
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