diff --git a/lib/bundler/settings.rb b/lib/bundler/settings.rb
index 03126f616c..abf7db21b4 100644
--- a/lib/bundler/settings.rb
+++ b/lib/bundler/settings.rb
@@ -430,6 +430,8 @@ module Bundler
         Pathname.new(ENV["BUNDLE_CONFIG"])
       elsif ENV["BUNDLE_USER_CONFIG"] && !ENV["BUNDLE_USER_CONFIG"].empty?
         Pathname.new(ENV["BUNDLE_USER_CONFIG"])
+      elsif ENV["BUNDLE_USER_HOME"] && !ENV["BUNDLE_USER_HOME"].empty?
+        Pathname.new(ENV["BUNDLE_USER_HOME"]).join("config")
       elsif Bundler.rubygems.user_home && !Bundler.rubygems.user_home.empty?
         Pathname.new(Bundler.rubygems.user_home).join(".bundle/config")
       end
diff --git a/spec/bundler/commands/config_spec.rb b/spec/bundler/commands/config_spec.rb
index 4e13a7903e..48f0ceab78 100644
--- a/spec/bundler/commands/config_spec.rb
+++ b/spec/bundler/commands/config_spec.rb
@@ -88,6 +88,16 @@ RSpec.describe ".bundle/config" do
       bundle "config get path", :env => { "BUNDLE_USER_CONFIG" => bundle_user_config }
       expect(out).to include("Set for the current user (#{bundle_user_config}): \"vendor\"")
     end
+
+    context "when not explicitly configured, but BUNDLE_USER_HOME set" do
+      let(:bundle_user_home) { bundled_app(".bundle").to_s }
+
+      it "uses the right location" do
+        bundle "config set path vendor", :env => { "BUNDLE_USER_HOME" => bundle_user_home }
+        bundle "config get path", :env => { "BUNDLE_USER_HOME" => bundle_user_home }
+        expect(out).to include("Set for the current user (#{bundle_user_home}/config): \"vendor\"")
+      end
+    end
   end
 
   describe "global" do