2026 BAH Rates — Cape May, NJ
2026 Basic Allowance for Housing (BAH) for Cape May, NJ (Military Housing Area NJ198), effective January 1, 2026. BAH is a tax-free monthly allowance set by your duty-station ZIP code, pay grade, and whether you have dependents.
| Pay grade | With dependents | Without dependents |
|---|---|---|
| E-1 | $2,523 | $1,968 |
| E-2 | $2,523 | $1,968 |
| E-3 | $2,523 | $1,968 |
| E-4 | $2,523 | $1,968 |
| E-5 | $2,754 | $2,172 |
| E-6 | $3,072 | $2,313 |
| E-7 | $3,114 | $2,532 |
| E-8 | $3,159 | $2,823 |
| E-9 | $3,312 | $2,913 |
| W-1 | $3,093 | $2,451 |
| W-2 | $3,132 | $2,820 |
| W-3 | $3,189 | $2,925 |
| W-4 | $3,360 | $3,078 |
| W-5 | $3,570 | $3,123 |
| O-1E | $3,117 | $2,751 |
| O-2E | $3,177 | $2,892 |
| O-3E | $3,390 | $3,066 |
| O-1 | $2,799 | $2,289 |
| O-2 | $3,069 | $2,682 |
| O-3 | $3,186 | $2,955 |
| O-4 | $3,639 | $3,108 |
| O-5 | $3,969 | $3,129 |
| O-6 | $4,002 | $3,165 |
| O-7 | $4,032 | $3,222 |
Estimate your own pay with the BAH calculator and the full military pay calculator. See all BAH locations or the by-state overview.
Frequently asked questions
How much is BAH in Cape May, NJ?
In 2026, an E-5 with dependents stationed in Cape May, NJ receives $2,754 per month in tax-free BAH, or $2,172 without dependents. Rates vary by pay grade — see the full table above.
Is BAH taxable?
No. BAH is a tax-free housing allowance, which makes it worth more than the same amount of taxable base pay.