Method and apparatus for dynamically allocating IP addresses in a wireless IP network. IP address servers determine the requisite IP address pools and guard bands for individual network cells to guarantee fair access to the network and facilitate handoff host handoff from a prior cell to a new cell. IP address servers also prioritize handoff and resident hosts that request an IP address from the IP address server. In particular, IP address servers assign a higher priority to handoff hosts over resident hosts that request an IP address from an IP address server in order to maintain a preestablished handoff host network connection instead of dropping a handoff host connection in favor of a new resident host network connection. Finally, each cell is allocated a minimum number of IP addresses to ensure a certain level of fair access to the network regardless of the cell wherein a handoff or resident host resides.