CFHD Rates by Location
(2026 CAF Housing Differential)
What CFHD Means for Your Housing Decision
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The Canadian Forces Housing Differential (CFHD) directly affects how much housing support you receive during a posting. While CFHD is not a reimbursement, it plays a key role in determining what housing options may be realistic in your new posting location.
How CFHD Influences Real Housing Choices
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CFHD rates vary by posting location and pay level, meaning housing affordability can change significantly between bases.
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In higher-cost markets, CFHD may help offset rising housing costs, while in other areas it may have limited impact.
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Understanding your CFHD amount early helps clarify whether renting or buying is more realistic during your posting timeline.
Once you understand your CFHD rate, the next step is applying it to real housing decisions. Many CAF families use CFHD to compare local housing options, connect with an IRP-Experienced REALTOR®, review Military Mortgage pre-approval options, and understand how CFHD fits within broader Entitlements & Benefits during a posting.
CFHD Frequently Asked Questions
What is the Canadian Armed Forces Housing Differential (CFHD) ?
The Canadian Armed Forces Housing Differential (CFHD) is a standardized housing cost adjustment that reflects differences in housing markets between posting locations. CFHD is calculated nationally and varies by pay level and location.
Does CFHD affect whether I should rent or buy?
The Canadian Armed Forces Housing Differential (CFHD) is a standardized housing cost adjustment that reflects differences in housing markets between posting locations. CFHD is calculated nationally and varies by pay level and location.
Is CFHD the same at every base?
No. CFHD rates vary by posting location and are periodically reviewed to reflect housing market conditions. This means CFHD amounts can differ significantly between bases.
Does CFHD affect whether I should rent or buy?
CFHD may influence budgeting and affordability calculations when exploring mortgage options. Understanding your CFHD rate early can help avoid over-extension and support more informed financing discussions.
Other Military Benefits & Entitlements
In addition to CFHD, CAF members may be eligible for other benefits and entitlements that affect relocation, housing, and family planning during a posting.
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Overview of CAF pay rates
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IRP relocation benefits and allowances
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Housing-related miscellaneous expenses
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Childcare assistance programs
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Spousal education and resilience resources
History of CFHD - Post Living Differential
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Previously named CAF Post Living Differential (PLD) - Background
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Efforts to obtain a cost of living benefit for Military go back to at least the mid 1980s when the CAF surveyed selected Military locations and determined variations in cost of living (per Base) and the effects it had on Military & families Postings. In late 1990s the Parliamentary Standing Committee on National Defence and Veterans Affairs (SCONDVA) recommended and approved the implementation of PLD, making the allowance the first of it’s kind within the Federal Government of Canada.
Are these Housing Benefits taxed ?
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Yes, they are taxed. As a result, an increment is added when calculating the rates to offset the income tax paid on the allowance. This means the allowance involves marginal tax allowance for loss through taxation. Will PPLD be a taxable benefit as well ? Absolutely!
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View Military pay, per trade, as well as other financial compensation and benefits packages for CAF members and their families :
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*Credit www.canada.ca > Military Benefits. subject to change. This website is not directly affiliated with DND or any GOV entity
