Real DoD 2026 BAH rates for all 4 Indiana Military Housing Areas, broken down by pay grade and dependency status.
Indiana has 4 Military Housing Areas (MHAs) covering every duty location with at least one DoD installation in the state. Rates below are pulled from the official Defense Travel Management Office (DTMO) 2026 tables, effective January 1, 2026, and reflect the across-the-board 4.2% national average increase plus location-specific rental-market adjustments.
The highest 2026 E-5-with-dependents BAH in Indiana is $1,947/month in Fort Wayne, In, while the lowest is $1,494/month in Terre Haute, In — a 30% spread that reflects how dramatically housing markets vary even within the same state. PCSing within Indiana can change your housing budget by hundreds of dollars per month, so always re-run your BAH the moment your orders drop.
Below is every Indiana Military Housing Area with 2026 BAH rates for the most-searched pay grades. Rates show with dependents / without dependents. For grades not shown (E-2, E-3, W-1, W-3, W-4, W-5, O-2, O-7), use the main BAH calculator with your duty ZIP.
| Military Housing Area | E-1 with / no dep | E-5 with / no dep | E-7 with / no dep | W-2 with / no dep | O-1 with / no dep | O-3 with / no dep | O-5 with / no dep |
|---|---|---|---|---|---|---|---|
| Fort Wayne, In | $1,782 / $1,338 | $1,947 / $1,503 | $2,154 / $1,785 | $2,166 / $1,986 | $1,977 / $1,611 | $2,205 / $2,058 | $2,727 / $2,163 |
| Bloomington, In | $1,755 / $1,317 | $1,905 / $1,482 | $2,139 / $1,761 | $2,223 / $1,920 | $1,920 / $1,602 | $2,469 / $1,953 | $3,225 / $2,418 |
| Indianapolis, In | $1,749 / $1,395 | $1,875 / $1,533 | $2,244 / $1,749 | $2,259 / $1,944 | $1,923 / $1,617 | $2,307 / $2,085 | $2,559 / $2,253 |
| Terre Haute, In | $1,401 / $1,119 | $1,494 / $1,233 | $1,887 / $1,416 | $1,917 / $1,563 | $1,542 / $1,302 | $2,001 / $1,701 | $2,655 / $1,992 |
Source: 2026 DoD BAH tables published by the Defense Travel Management Office (DTMO), effective January 1, 2026. Verify your exact rate by ZIP code at defensetravel.dod.mil.
BAH (Basic Allowance for Housing) is a non-taxable monthly stipend paid to service members who do not live in government quarters. The rate is set by your duty-station ZIP code (mapped to a Military Housing Area), your pay grade, and your dependency status (with or without dependents). The amount is calibrated annually to cover the median rental cost — including utilities and renter's insurance — for the housing profile assigned to your rank in your area.
Indiana hosts 3 active-duty installations that drive most of the state's BAH demand. Each has its own MHA assignment, so rates near each base reflect that local rental market — not a state average.
If your duty station isn't in the table above, use the BAH calculator with your duty ZIP — DTMO maps each ZIP to its parent MHA automatically.
Indiana fully exempts military service pay (subject to a maximum) — verify with current Schedule 2.
Indiana provides a deduction on Schedule 2 (Form IT-40) for military service compensation. Active-duty pay earned while serving in a combat zone is fully exempt; non-combat active-duty pay is exempt up to the limits set by current state law. Reserve and Guard pay for federally ordered training and active duty also qualifies. Military retirement is fully exempt from Indiana income tax.
This is general information, not tax advice. State tax law changes frequently — verify your current-year situation with the Indiana Department of Revenue (or equivalent), the IRS, or a qualified tax professional. Service members claiming residency in a different state under the Servicemembers Civil Relief Act (SCRA) are taxed only by their state of legal residence, regardless of where they're stationed. Civilian-spouse income protections under the Military Spouse Residency Relief Act (MSRRA) may also apply.
The top 4 most-expensive Indiana Military Housing Areas by 2026 E-5-with-dependents BAH:
E-5: $1,947 with / $1,503 without dependents · E-7: $2,154 / $1,785 · O-3: $2,205 / $2,058
E-5: $1,905 with / $1,482 without dependents · E-7: $2,139 / $1,761 · O-3: $2,469 / $1,953
E-5: $1,875 with / $1,533 without dependents · E-7: $2,244 / $1,749 · O-3: $2,307 / $2,085
E-5: $1,494 with / $1,233 without dependents · E-7: $1,887 / $1,416 · O-3: $2,001 / $1,701
If you have flexibility on duty-station preferences during your next assignment cycle, these areas pay the highest housing allowance — but housing supply is also the tightest, so rate alone shouldn't drive the decision.
Banking, lending, and insurance providers that serve the military community. We may earn a commission from some partners at no extra cost to you.