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Yes, basement insulation needs a vapor barrier due to its susceptibility to moisture seeping in from the outside of the house. You should install a moisture barrier before you install insulation or purchase insulation that comes prebuilt with a moisture barrier to avoid water damage in your insulation and costly mold and water remediation expenses. 

Unfaced wall insulation is easier to cut and install, making it the better choice for a DIY project. It’s also more affordable. But if it’s unfaced, you’ll likely need to add a vapor barrier to reach your desired R-value and efficiency, as it doesn’t offer any moisture barrier.

Faced insulation uses paper or foil to create a built-in barrier and doesn’t require an extra step. It’s also more fire-resistant and safe. But it’s quite a bit more expensive and a little bit harder to work with as a DIYer.

Insulating your home's exterior walls can realize up to a 20% reduction in your monthly energy bills. This means that regardless of how much the project costs, it can begin to pay you back immediately. Additionally, adding spray foam and other high-end materials can increase the selling value of the property.

A plastic vapor barrier should completely cover your basement to prevent water from penetrating through the walls. This typically goes before installing insulation to prevent moisture from building up and becoming trapped on the inside of your insulation, where it can collect and lead to mold damage. Installing insulation after the vapor barrier allows for any moisture to exit the walls for better ventilation.