How much are HOA fees?
How much are HOA fees?
$100 – $300 average cost per month
Average homeowners' association fees
HOA fees are $100 to $300 per month on average, although they can range from less than $50 to $1,000 per month depending on the location, amenities provided, or property values. Some HOAs collect dues less frequently than others, charging $300 to $900 per quarter or $1,200 to $3,600 per year instead.
| Fee type | Average cost |
|---|---|
| Monthly | $100 – $300 |
| Quarterly | $300 – $900 |
| Bi-annually | $600 – $1,800 |
| Annually | $1,200 – $3,600 |
What is an HOA fee?
A Homeowners' Association (HOA) fee is money a homeowner pays to a management council in charge of a neighborhood, condo, or subdivision. The HOA is responsible for maintaining the value of a group of homes, managing finances from HOA dues, taking care of amenities, and enforcing rules.
An HOA must maintain transparency and send residents a statement regarding the HOA's income, reserve funds, and any future project or repairs they've planned.
What do HOA fees cover?
HOA fees normally cover maintenance and repair of common areas. This can include:
Landscaping
Pools
Gyms
Lobbies or clubhouses
Playgrounds
In some cases, the fee also covers utilities like water, sewer, and trash disposal. Additionally, HOAs maintain a reserve fund to handle future repairs of shared elements like entrance gates, roofs, or siding.
HOA cost factors
Not every neighborhood has an HOA managing the homes. The ones that do have an HOA vary in their fees and what they cover. The following factors influence the fee amount:
Maintenance: HOAs with more amenities, common areas, and landscaping may spend more money on upkeep and repairs. This includes clubhouses, playgrounds, swimming pools, gyms, and elevators.
Location: Areas with a higher cost of living, like New York, often have higher HOA rates. Oceanfront properties or luxury gated communities have higher dues on average.
Utilities: The cost of utilities may vary depending on how much lighting, water, or other utilities the community facilities use.
Administration: The homeowners' association may pay for services related to management, like legal fees, insurance, or staff.
Reserve fund: Many HOAs set aside money for unexpected expenses or future projects.
Community size: Since HOAs split up their operating costs among the homeowners, larger communities may pay less per person unless they have luxury amenities.
Late fees: Most homeowners' associations charge late fees if a homeowner does not pay their dues on time. The HOA may or may not send reminders through text, social media, email, or a newsletter.
In the case of unpaid dues, the HOA may send a Notice of Delinquency, restrict access to amenities, file a lawsuit, or take extreme legal actions like placing a lien on the home.
Collection method
Homeowners' associations may collect dues annually, bi-annually, quarterly, or monthly. Depending on the preferences and abilities of the HOA management, you may be able to pay using one or more of the following methods:
Mailed check
Online portal
Debit or credit card payments
ACH bank payments
In-person payments
Criticism of HOAs
Many prospective homeowners avoid properties within Homeowners Associations (HOAs) due to the additional costs involved. For these individuals, the extra fees on top of their mortgage, utilities, and other expenses outweigh the benefits of community amenities like pools or parks.
Additionally, homeowners can face added risks and stress if the HOA doesn't properly manage the reserve fund and relies on raising fees to cover a neighborhood project or repair. Another point of contention is that HOAs enforce rules that homeowners may find arbitrary or restrictive. Some HOAs have rules for landscaping, house paint colors, or which kind of fence the house can have.
Homeowners' association FAQs
What is an HOA?
A Homeowners' Association (HOA) is an organization that manages a group of homes and their shared community spaces. This can include a condominium, gated community, or neighborhood. The HOA charges a fee for services and amenities like maintaining a swimming pool, building a playground, or providing a fitness center.
Are HOA fees tax deductible?
HOA fees are not tax deductible if you own the home and use it as a primary residence. However, if you buy a home to use as a rental property, you can deduct HOA dues from your taxes because they're part of rental expenses.
Can an HOA enter your home?
In most cases, a member of an HOA cannot enter your home without asking as this is trespassing. Your home is private property, and they can't enter without your consent. However, some exceptions may apply:
Emergencies: They can enter if there's a fire, flood, or other emergency that threatens the safety and wellbeing of you or the property.
Maintenance: They may have the right to enter for maintenance or repairs you've requested or to address serious issues. However, they normally must give prior notice.
Violations: HOAs can come in to inspect for violations of rules, but they have to give sufficient prior notice and get consent first.
Make sure you're familiar with your state's laws regarding HOAs and your specific HOA's Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
Questions to ask HOA officers
If you're living in or looking for a home that's in an HOA, ask the board members or officers specific questions to familiarize yourself with their rules and management style:
How much is the HOA fee for this community?
How often do you collect dues?
What's your budget for this year?
How do you allocate the HOA fees?
Can I see a copy of the HOA's financial statements and reports?
What is your process for approving repairs or projects?
What amenities and services do you provide?
How do you handle late fees? Are there any ways to waive them?
Can I see a copy of your CC&Rs?
How do you handle rule violations?
What are your policies for issues like pets, noise, landscaping, and complaints?
How can residents communicate with the board?
Do you have any plans to add or improve amenities?
Will residents get any say or vote on that?
Do you anticipate raising HOA fees anytime soon? If so, how much?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.