2026 Fort Cavazos BAH Rates by Rank
BAH (Basic Allowance for Housing) rates are set annually by the Defense Finance and Accounting Service (DFAS) based on local rental costs. Fort Cavazos uses the Killeen, TX zip code area for rate calculations. Rates below are the 2026 DFAS figures — they are tax-free and paid whether you buy or rent.
Without Dependents = single service member or married member not claiming BAH-with-dependents. With Dependents = married members, or single parents with legal custody. BAH with dependents is always higher and does not change based on number of dependents.
| Rank | Grade | BAH w/o Dependents | BAH w/ Dependents | Monthly Difference |
|---|---|---|---|---|
| E-4 (Specialist / Corporal) | E-4 | $1,170 | $1,440 | +$270 |
| E-5 (Sergeant) | E-5 | $1,251 | $1,512 | +$261 |
| E-6 (Staff Sergeant) | E-6 | $1,332 | $1,500 | +$168 |
| E-7 (Sergeant First Class) | E-7 | $1,440 | $1,620 | +$180 |
| E-8 (Master Sergeant / 1SG) | E-8 | $1,521 | $1,710 | +$189 |
| E-9 (Sergeant Major) | E-9 | $1,602 | $1,800 | +$198 |
| W-1 (Warrant Officer 1) | W-1 | $1,332 | $1,593 | +$261 |
| W-2 (Chief Warrant Officer 2) | W-2 | $1,413 | $1,674 | +$261 |
| O-1 (Second Lieutenant) | O-1 | $1,332 | $1,674 | +$342 |
| O-1E (O-1 w/ 4+ yrs enlisted) | O-1E | $1,440 | $1,755 | +$315 |
| O-2 (First Lieutenant) | O-2 | $1,584 | $1,836 | +$252 |
| O-3 (Captain) | O-3 | $1,719 | $2,043 | +$324 |
| O-4 (Major) | O-4 | $1,899 | $2,205 | +$306 |
| O-5 (Lieutenant Colonel) | O-5 | $2,052 | $2,394 | +$342 |
Source: DFAS BAH rates, 2026. Killeen, TX zip code area. Verify current rates at dfas.mil before making financial decisions.
Rent vs. Buy Calculator — Your Numbers, Instantly
Select your rank and dependency status. The calculator will show your 2026 BAH, what you can comfortably buy with a VA loan, your estimated monthly PITI, and a buy vs. rent verdict based on current Bell County market data.
Calculator assumptions: VA loan at 6.5% interest, 30-year term, $0 down. Property taxes calculated at Killeen ISD rate (~1.98%). Homeowners insurance estimated at $120/month. Rental comparison uses Bell County median 3BR rent of $1,530/month. This is an estimate — get a full pre-approval from a VA-approved lender before making decisions.
What Each Rank Tier Can Realistically Buy
Bell County’s affordability means BAH goes further here than in most duty stations. Here’s an honest breakdown of what each rank tier can access — including which city makes the most sense and what the gap between BAH and total housing cost actually looks like.
Full Purchase Math by Rank — The Actual Monthly Numbers
This table shows what a VA loan actually costs monthly in Bell County at three price points, compared to renting a comparable home. Mortgage payments calculated at 6.5% / 30-year / $0 down. Property taxes use the Killeen ISD rate (1.98%) unless noted — the most common rate for Fort Cavazos buyers.
| Scenario | Home Price | P&I (VA Loan) | Taxes/Mo | Insurance | Total PITI | Rent Equiv. | Buy Better? |
|---|---|---|---|---|---|---|---|
| E-4/E-5 Killeen starter | $195,000 | $1,233 | $322 | $110 | $1,665 | $1,460 | Marginal |
| E-6 Killeen standard | $220,000 | $1,392 | $363 | $120 | $1,875 | $1,460 | ✓ Yes (2yr+) |
| E-7 Harker Heights | $265,000 | $1,676 | $437 | $130 | $2,243 | $1,463 | ✓ Yes (3yr+) |
| E-8/E-9 Temple/Harker Hts | $285,000 | $1,802 | $470 | $135 | $2,407 | $1,525 | ✓ Yes (3yr+) |
| O-3 Belton (Belton ISD) | $320,000 | $2,023 | $421* | $145 | $2,589 | $1,641 | ✓ Yes (2yr+) |
| O-4 Temple luxury | $380,000 | $2,402 | $627 | $160 | $3,189 | $1,800 | ✓ Yes (3yr+) |
*Belton uses a lower city tax rate (0.5225%) vs. Temple (0.6999%). PITI for Belton is often lower than equivalent Temple homes despite higher purchase prices. Rates include homestead exemption applied.
Builder buydowns change the math. D.R. Horton and StyleCraft are currently offering 3-2-1 rate buydowns on new construction in Temple and Killeen — dropping your effective rate to as low as 3.5% in year one and 4.5% in year two. On a $220,000 purchase, that can reduce year-one monthly payments by $250–$350/month, which shifts even the E-4/E-5 scenario firmly into “buy” territory. Ask your agent to specifically identify builder inventory accepting VA loans with active buydown offers.
Equity Built Over a 3-Year Tour in Bell County
Buying a home on PCS orders isn’t just about the monthly cost — it’s about what you walk away with when the next set of orders arrives. Here’s the equity picture at three common price points over a 36-month tour, using a 6.5% VA loan and a conservative 2% annual appreciation rate for Bell County (below the market’s recent norm).
| Purchase Price | Principal Paid (36 mo) | Appreciation (2%/yr) | Total Equity Gain | Sell Cost (~5%) | Net Ahead vs. Renting |
|---|---|---|---|---|---|
| $195,000 | ~$7,100 | ~$11,900 | ~$19,000 | ~$9,750 | ~$9,250 |
| $220,000 | ~$8,400 | ~$13,400 | ~$21,800 | ~$11,000 | ~$10,800 |
| $265,000 | ~$10,100 | ~$16,200 | ~$26,300 | ~$13,250 | ~$13,050 |
| $320,000 | ~$12,200 | ~$19,500 | ~$31,700 | ~$16,000 | ~$15,700 |
| $380,000 | ~$14,500 | ~$23,200 | ~$37,700 | ~$19,000 | ~$18,700 |
Highlighted row: the E-6 scenario at $220,000 — the most common Bell County military purchase. Appreciation modeled at 2%/yr compounded; actual Bell County appreciation has historically exceeded this. Net figures assume home is sold at end of tour. If rented instead, seller avoids transaction costs and retains the asset.
At $1,460/month (Temple median 3BR rent) × 36 months = $52,560 paid to a landlord, with zero equity, zero asset, and no tax benefit. Every dollar of that is gone when you PCS. The net-ahead figures in the table above represent real money in your pocket that renting simply doesn’t produce.
The Break-Even Rule: When Buying Wins
The break-even point is when the equity and appreciation you’ve accumulated exceeds the transaction costs of buying and selling. In Bell County, that break-even is approximately 18–22 months for most rank scenarios.
| Tour Length | Verdict | Reasoning |
|---|---|---|
| Under 12 months | Rent | Transaction costs of buying and selling exceed equity built. Rent or use temporary lodging. |
| 12–18 months | Depends | Borderline. If you plan to rent the property after PCS rather than sell, buying can make sense even at 12 months. If selling at PCS, likely neutral at best. |
| 18–24 months | Usually Buy | Most rank scenarios break even by month 18–20 in Bell County’s market. A 24-month tour produces meaningful positive equity at all price points above $195K. |
| 24–36 months | ✓ Buy | Clear buy case for virtually every rank. Equity built easily covers transaction costs with $7,000–$15,000+ net ahead at most price points. |
| 36+ months / staying | ✓ Buy | Strongest buy case. Long-duration buyers also benefit from property tax homestead exemption (cap on appraisal increases), compounding equity, and the option to keep the property as a rental on follow-on orders. |
Many Fort Cavazos buyers on follow-on assignments choose not to sell — they keep the Bell County home as a rental. The area’s BAH-driven demand means military tenants are plentiful, rents are stable, and vacancy risk is low. A $220,000 home in Killeen can rent for $1,300–$1,500/month, often covering the mortgage while you’re elsewhere. This extends your break-even indefinitely and builds long-term wealth.
Belton’s STR ban (Ordinance 2025-4950) prohibits short-term rentals in residential zones — but long-term military rentals are unaffected. Temple allows STRs by right. Factor this into city choice if rental income is part of your plan.
The Disabled Veteran Property Tax Exemption — What It’s Worth in Bell County
If you have a 100% service-connected disability rating from the VA, you pay zero property taxes in Texas on your primary residence. This is not a reduction — it is a complete exemption. On a median Bell County home, this single benefit is worth $5,000–$6,500 per year.
| Home Price | Annual Taxes (No Exemption) | Annual Taxes (100% Disabled Vet) | Annual Savings | Savings Over 10 Years |
|---|---|---|---|---|
| $195,000 | ~$3,861 | $0 | $3,861 | $38,610 |
| $220,000 | ~$4,356 | $0 | $4,356 | $43,560 |
| $265,000 | ~$5,247 | $0 | $5,247 | $52,470 |
| $320,000 | ~$5,992* | $0 | $5,992 | $59,920 |
| $380,000 | ~$7,524 | $0 | $7,524 | $75,240 |
*Belton figures use combined Belton ISD + Bell County rates. Rates vary by city and school district. Apply through bellcad.org — bring your VA disability award letter to the Bell County Appraisal District office.
Partial disability ratings also receive partial exemptions. 10–29% rating: $5,000 property value exemption. 30–49%: $7,500. 50–69%: $10,000. 70–99%: $12,000. 100% service-connected: full exemption. Apply once — it stays with the property as long as you own and occupy it as your primary residence. Surviving spouses of 100% disabled veterans who died in service also qualify for the full exemption.
The exemption does not apply automatically. You must file an application with the Bell County Appraisal District (BellCAD). The deadline is April 30 for the current tax year. Applications filed after April 30 apply to the following year. Bring your VA disability award letter and your DD-214.
Know Your BAH. Now Let’s Find the Right Home.
I run this analysis for every military client before we look at a single listing. Tell me your rank, your priorities, and your timeline — I’ll tell you exactly what the math supports and where to look.
Moody Glasgow · REALTOR® · Orchard Realty · License #795158
Frequently Asked Questions
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The option period, VA amendatory clause, Texas-specific nuances, and which Bell County lenders specialize in VA.
Read VA Loan Guide← Back to the Full PCS Housing Guide
Timeline, document checklist, on-base vs. off-base, and Texas contract terms — all in one place.
Return to Hub GuidePCS Orders & Your Home — What Military Sellers Need to Know
Your 4 options when orders arrive: sell, rent, short sale, or IRRRL. The PCS hardship short sale explained.
Read PCS Seller GuideLet’s Talk Through Your BAH and What It Buys You in Bell County
20 minutes on the phone. I’ll tell you what your BAH supports, which city fits your priorities, and what VA loan options look like right now. No pressure.
Moody Glasgow · REALTOR® · Orchard Realty · License #795158 · texashomesbymoody.com