Quick answer: What are HOA fees?
HOA fees are recurring charges a homeowners association collects from every owner to run the community. They pay for shared costs like landscaping, insurance, amenities, management, and reserve savings for big repairs. The most recent Census Bureau data puts the median condo or HOA fee at $135 a month (2024), though fees vary widely by location and building type
Legal and tax disclaimer
This article is general information, not legal, tax, or financial advice. HOA rules vary by state and by each community's governing documents. Talk to a licensed attorney, CPA, or lender about your specific situation.
If you're shopping for a condo or a home in a planned community, the HOA fee is the line on the listing that can change what you can comfortably afford. If you sit on a board, it's the number your neighbors will ask about at every budget meeting. Either way, it pays to know what's inside it.
Below, we walk through what HOA fees pay for, what typical fees look like based on federal data, why they go up, and how boards actually set them. We also answer the tax, mortgage, and nonpayment questions that come up most often.
What Are HOA Fees?
An HOA fee, also called HOA dues or a regular assessment, is your share of the community's shared expenses. When you buy a home inside a homeowners association, condominium, or similar community, the governing documents make you a member. Membership comes with an obligation to pay, and the formula for splitting costs among owners is usually spelled out in the declaration, often called the CC&Rs.
This covers a big slice of American housing. The Foundation for Community Association Research estimates there were about 373,000 community associations in the U.S. in 2025. Together they housed roughly 78.1 million residents and made up 35.2 percent of all U.S. housing.
HOA dues, assessments, and condo fees: what's the difference?
People use these terms loosely, and your documents may use a different one than your neighbors do. Here's how they usually break down.
The Census Bureau draws the same distinction: HOA fees typically go toward common areas and amenities, while condo fees tend to cover more shared services plus structural features. That's one reason condo fees often run higher than fees in single-family HOAs.
How Much Are HOA Fees? Average and Median Costs
The most reliable national number comes from the U.S. Census Bureau. Its 2024 American Community Survey is the most recent Census data available and the first to capture HOA fees alongside condo fees. It found that about 21.6 million of the country's 86.6 million owner households paid one or the other in 2024.
The national median was $135 a month, or about $1,620 a year. Owners with a mortgage paid a median of $120, while owners without one paid $184. The Census Bureau suggests that gap may reflect people downsizing into communities with more amenities later in life.
Why 2024? The Census Bureau normally publishes the next year's figures each September, but it has delayed the 2025 release with no date set yet. Until it arrives, 2024 is the latest official snapshot.
Newer listing data points the same way. Realtor.com's 2025 HOA report, based on homes listed for sale on its site, found a median HOA fee of $135 in 2025, up from $125 in 2024 and $108 in 2019. The share of listings with an HOA fee climbed to 43.6 percent, from 34.3 percent in 2019. Because it only covers homes on the market, treat it as a trend signal rather than a picture of every owner.
Chart: Median monthly condo or HOA fee by mortgage status, 2024. Source: U.S. Census Bureau, American Community Survey.
That median hides a lot of spread. About 26 percent of fee-paying households, roughly 5.6 million, paid less than $50 a month. At the other end, about 3 million paid more than $500. Location matters a great deal: in New York, 64 percent of fee-paying owners reported more than $500 a month, and so did about half of fee payers in Hawaii and the District of Columbia.
Source: U.S. Census Bureau, 2024 American Community Survey 1-year estimates.
Median vs. average
You'll find plenty of "average HOA fee" and average HOA dues figures online, many from private surveys with unclear methods. The Census Bureau reports the median: the midpoint where half of households pay less and half pay more. A handful of luxury high-rises can drag an average up, so the median is a better guide to what a typical owner pays.
What makes one community's fees higher than another's?
What counts as normal HOA fees depends heavily on the type of community. A few factors explain most of the difference:
• Building type. A high-rise condo carries elevators, roofs, and structural systems. A single-family HOA may only maintain an entrance, a pond, and some common landscaping.
• Amenities and staff. Pools, clubhouses, gyms, gates, and on-site staff all add recurring costs.
• Location and insurance. Communities in high-cost or high-risk areas pay more for labor, utilities, and coverage.
• Age and reserve health. Older communities face more replacements, and those that underfunded reserves in the past often have to catch up.
• Management model. Hiring a professional property management firm adds a budget line. The Foundation for Community Association Research estimates 30 to 40 percent of associations are self-managed. If you're weighing the two, see our comparison of HOA self-management vs. professional management.
• Community size. Fixed costs like insurance and audits get split across fewer homes in a small association.
What Do HOA Fees Cover?
Every budget is different, but the money generally goes to two places: the operating budget that keeps the community running this year, and reserve contributions that save for big repairs later. The Foundation for Community Association Research reports that associations collected $124.2 billion in assessments in 2025 and put $31.1 billion of it into reserve funds. That's roughly a quarter of every assessment dollar set aside for future repairs.
Insurance deserves a closer look, since the master policy is often one of the largest lines in the budget. Our guide to the HOA master insurance policy explains what it usually covers and what owners still need to insure themselves.
Operating costs vs. reserve contributions
Operating costs are the predictable bills: the landscaper, the insurance premium, the management contract. Reserve contributions work differently. They build savings for components that wear out on a known schedule, so the association isn't forced into a special assessment when the roof is done.
A reserve study estimates how long each major component will last and what it will cost to replace. Boards use it to decide how much of each fee goes into HOA reserve funds each year.
What HOA fees usually don't cover
Your fee pays for what the association is responsible for, and the governing documents draw that line. In many single-family HOAs, the association doesn't maintain your house at all. In a condo, the association often handles the building exterior and structure, while owners cover their unit interiors and personal insurance. Check the maintenance responsibility section of your CC&Rs before assuming something is included.
Why Are HOA Fees So High?
When fees jump, there's usually a specific reason sitting in the budget. These are the most common ones:
• Insurance premiums. When the insurance market tightens, associations pass higher master policy costs straight through to owners.
• Catching up on reserves. Communities that kept dues low for years by underfunding reserves eventually have to close the gap, through higher dues, special assessments, or both.
• Aging buildings and infrastructure. Roofs, paving, plumbing, and elevators all reach the end of their useful life, and replacement costs climb with inflation.
• New state requirements. After the 2021 Surfside condominium collapse, Florida required condo buildings three habitable stories or higher to complete structural integrity reserve studies. Under Section 718.112, Florida Statutes, owners in those associations can no longer vote to skip or reduce reserves for the covered structural items in budgets adopted on or after December 31, 2024.
• More amenities and services. Every pool, gym, or staffed gate means more maintenance, payroll, and insurance.
A rising fee for these reasons doesn't automatically mean something's wrong. In fact, a fee that looks suspiciously low for a building's age and amenities can be the bigger warning sign, because the shortfall tends to show up later as a special assessment.
How HOA Boards Set Fees
For board members, the fee comes out of the annual budget. Get the budget right and the fee mostly takes care of itself. The general process looks like this:
1. Review the latest reserve study and settle on a reserve funding plan for the year.
2. Estimate operating costs from last year's actuals, current contracts, and insurance renewal quotes.
3. Add the reserve contribution to operating costs to find total revenue needed.
4. Subtract other income, such as late fees, fines, or amenity rentals.
5. Divide the remainder among owners using the allocation formula in the declaration, whether that's equal shares, square footage, or a percentage interest.
6. Adopt the budget and give owners notice of any change on the timeline your state requires.
For a deeper walkthrough, see our HOA budget planning tips. Most governing documents give the board authority to adopt the budget, but many states limit how far fees can rise without an owner vote. A few examples:
Other states set their own limits, and your governing documents can be stricter than state law. For state-specific detail, see our guides to California HOA law changes, new HOA laws in Florida, and Texas HOA law.
Tracking the budget behind your fees
ManageCasa's financial tools keep operating funds, reserves, and special accounts on separate ledgers, with budget-versus-actual tracking boards can share with owners. Recurring assessments, autopay, and online dues payments by ACH or card are built in, so the fee a board adopts is the fee that gets billed and tracked.
The math is only half the job. Owners accept an increase far more readily when they can see the budget line behind it. Our guides on communicating HOA fee changes and HOA financial transparency cover how to present it.
Are HOA Fees Tax Deductible?
For most homeowners, no. IRS Publication 530 lists homeowners association fees, condominium association fees, and common charges among the payments you can't deduct on your home. It also notes that HOA assessments don't count as deductible real estate taxes, because the association imposes them rather than a state or local government.
Rental property is a different story. If you rent the home out, HOA dues are generally treated as a deductible rental expense, and IRS Publication 527 addresses association dues and assessments for rental condominiums. Special assessments that pay for improvements are handled differently, because improvement costs are usually capitalized and depreciated rather than deducted all at once. If you use part of your home for business, IRS Publication 587 explains how a share of home expenses may qualify. A tax professional can tell you how these rules apply to you.
Are HOA Fees Included in Your Mortgage?
Usually not. Most owners pay the association directly, separate from the mortgage payment, even when property taxes and homeowners insurance run through escrow. Lenders still count the fee, though. Fannie Mae's Selling Guide includes owners' association dues in the monthly housing expense used to calculate a borrower's debt-to-income ratio, so a higher fee can reduce the loan amount you qualify for.
What Happens If You Don't Pay HOA Fees?
Nonpayment escalates, and it gets expensive. The exact steps depend on your state's laws and your community's collection policy. Owners who fall behind typically see late fees and interest first, followed by collection letters, with attorney costs often added to the balance.
Many states let the association record a lien against the home, and in some states an association can eventually foreclose on that lien. Unpaid dues also follow the property, so they generally have to be settled before a sale can close. If you're a board member handling delinquencies, our guide to recovering delinquent HOA dues lays out a fair, step-by-step approach.
How to Evaluate HOA Fees Before You Buy
The monthly number on a listing tells you part of the story. Before you commit, ask the seller or association for these documents:
• The current budget, so you can see what the fee actually pays for.
• The latest reserve study, along with how current reserve balances compare with its recommendations.
• Fee and assessment history, including increases and any special assessments over the past several years.
• Recent board meeting minutes, which often reveal upcoming projects, insurance trouble, or disputes before they reach the budget.
• The master insurance policy, so you know what you'll still need to insure yourself.
• Any pending litigation involving the association.
Still deciding between property types? Our condo vs. townhouse comparison covers how ownership and fees differ between the two.
Frequently Asked Questions About HOA Fees
Are HOA fees tax deductible?
HOA fees on your primary residence are not tax deductible, according to IRS Publication 530. If you rent the property out, the dues are generally deductible as a rental expense under IRS Publication 527, and a home office may allow a partial deduction. Special assessments for improvements follow different rules, so check with a tax professional.
What happens if you don't pay HOA fees?
If you don't pay HOA fees, the association can add late fees and interest, send the account to collections, and in many states record a lien on your home. In some states, an unpaid lien can lead to foreclosure. The process depends on state law and the association's collection policy, so contact the board early if money is tight.
How much HOA fee is too much?
There's no universal limit, but an HOA fee is too much when it strains your monthly budget or buys less than comparable communities offer. The national median was $135 a month in the most recent Census Bureau data (2024). Weigh the fee against what it covers, and remember that unusually low dues can signal underfunded reserves.
Are HOA fees included in my mortgage payment?
HOA fees are usually paid directly to the association rather than through your mortgage payment or escrow account. Lenders still count them, though. Fannie Mae includes owners' association dues in the monthly housing expense it uses to calculate debt-to-income ratio, so higher dues can lower the loan amount you qualify for.
Do renters pay HOA fees?
Renters usually don't pay HOA fees directly, because the association bills the property owner. A landlord may build the cost into the rent, and some leases pass specific charges, like amenity or move-in fees, to the tenant. Renters still have to follow the community's rules, and violations can lead to fines charged to the owner.
Related HOA Guides
• HOA Special Assessments: Rules, Limits, Notices, and Homeowner Rights
• HOA Budget Planning: 6 Essential Tips
• What Are CC&Rs? A Homeowner's Guide
• Recovering Delinquent HOA Dues
• HOA Master Insurance Policy: Coverage Types and What Homeowners Need
• Accounting for Homeowners Associations: The Complete Guide
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Content Writer
Dann is a real estate and property management content strategist specializing in HOA operations, financial management, and community governance. He works closely with industry professionals to produce accurate, practical guidance for property managers and HOA boards.