The Ministry of Housing and Urban Affairs alloted the top bracket bungalow at 6 K Kamraj Lane to the JD(U) supremo, an official said.
Every state has a certain quota of bungalows in the national capital, he said, adding based on that quota, Kumar, as the chief minister, was alloted the house.
Kumar made headlines after he decided to shun the grand alliance of the Congress and Rashtriya Janata Dal (RJD), and rejoined the National Democratic Alliance (NDA) to form the government in Bihar last year.
Sharad Yadav is expected to launch his own party soon.
As the railway minister in the NDA government i.e. from 2001 to 2004, Kumar had lived in one of the biggest bungalows at Akbar Road in the national capital.
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