What counts
- Base pay — taxable, used at face value.
- BAH — tax-free housing allowance, based on your duty station and pay grade.
- BAS — tax-free food allowance.
- Special pays like flight, jump or hazardous-duty pay can count when they're likely to continue.
Grossing up tax-free income
Because BAH and BAS aren't taxed, many lenders "gross them up" — commonly by 25% — to compare them fairly with taxable pay. Example: $3,963 of BAH grossed up 25% counts as about $4,954 toward your debt ratio. Look up your own rate with our 2026 BAH calculator.
What you'll need
- Your most recent LES (Leave and Earnings Statement).
- Your ETS date. If you're within 12 months of it, the lender will want proof you're reenlisting, a job lined up after separation, or other continuing income.
- PCS orders if you're buying at a new duty station — your BAH will be based on the new location.
See what your BAH can buy
Our calculator loads 2026 base pay and BAH by ZIP, grosses up your allowances and runs the VA residual income test automatically.
Common questions
Is BAH counted as income for a mortgage?
Yes. BAH is listed on your LES and counts as qualifying income for VA (and most other) loans.
Why does my ETS date matter?
Lenders need to know your income will continue. Within 12 months of ETS, expect to show reenlistment, a job offer, or other income.
Does BAH change if I PCS?
Yes — BAH follows your duty station. If you're buying at a new base, lenders use the BAH for your new location based on your orders.
See your real numbers
Our free calculator uses 2026 pay tables, BAH by ZIP and VA residual income standards. About 2 minutes, no credit pull.
Educational information only, not a commitment to lend or a loan approval. VA guidelines and lender requirements change; your eligibility and terms depend on your full application, credit, income and VA entitlement.