An apparatus and method for renewal-based resource allocation in a Broadband Wireless Access (BWA) system are provided. A Base Station (BS) allocates resources to a Mobile Station (MS) by resource allocation information. It is determined whether the MS requires continuous resource allocation or whether the MS does not have transmission data temporarily, when a resource allocation duration for downlink resources allocated to the MS has expired. One of resource allocation termination, resource allocation renewal, and temporary resource lending to another MS is performed according to the determination. Information for updating the resource allocation information is transmitted to the MS.