If you’re considering buying a home in an HOA community, you’ve likely heard of HOA fees. But what exactly are they, and how much should you expect to pay?

In this guide, we’ll break down what HOA fees include, how much they cost, and whether they’re worth it for homeowners.

What Are HOA Fees?

HOA fees are regular payments homeowners make to their community’s homeowners association (HOA) to help maintain and improve shared spaces, amenities, and essential services. These fees help keep the community clean, safe, and well-maintained.

Homeowners association (HOA) fees are most commonly required in condominium communities but may also apply to some single-family home neighborhoods. They are also referred to as ‘common charges‘ or ‘maintenance fees.’

What Do HOA Fees Cover?

Think of HOA fees as a shared investment. Everyone chips in to keep the community well-maintained and enjoyable. Here’s what most HOA fees typically cover:

• Maintenance & Landscaping – Covers the upkeep of shared spaces, including lawns, sidewalks, parks, and building exteriors (for condos and townhomes).
• Amenities & Facilities – Pays for the operation and maintenance of pools, gyms, clubhouses, tennis courts, and other recreational areas.
• Security Services – Can include gated entry, security guards, neighborhood patrols, and surveillance systems.
• Utilities for Common Areas – Covers street lighting, water, sewer, and garbage collection for shared spaces.
• Reserve Fund Contributions – A portion of the fees goes toward long-term savings for major repairs and unexpected costs, such as roof replacements or road resurfacing.
• Community Services & Management – Some HOAs use funds for administrative costs, legal fees, and neighborhood events.

Each homeowners association (HOA) is different. Some cover only the basics, while others provide luxury perks like concierge services or private golf courses. Before buying a home, check what is included so you know exactly what you are paying for.

How Much Are HOA Fees?

HOA fees can vary a lot depending on where you live, the amenities available, and the size of your community.

Average HOA Fee Costs

• National Average: $200–$300 per month
• Luxury Communities: $500–$1,000+ per month
• Basic HOAs (Fewer Services): As low as $50 per month

What Determines HOA Costs?

• Location – If you live in a big city or an area with high property values, expect to pay more.
• More Perks, Higher Fees – Fancy amenities like pools, gyms, and security services mean higher monthly costs.
• Property Type – Condo owners usually pay more because the HOA maintains the building exterior and shared spaces, while single-family home HOAs tend to charge less.
• Future Repairs – Older communities or those with big projects planned (like road repairs or roof replacements) may charge higher fees to build up reserve funds.

Are HOA Fees Included in Mortgage Payments?

According to the Consumer Financial Protection Bureau (CFPB), HOA fees are typically not included in your monthly mortgage payment. Homeowners must budget for these costs separately, as unpaid fees could lead to penalties or legal action by the HOA.

Are HOA Fees Tax Deductible?

Wondering if you can write off your HOA fees on your taxes? It depends on how you use the property.

1. If you rent out the home: Good news! HOA fees count as a business expense, so you can deduct them from your rental income.
2. If it’s your primary residence: HOA fees are not tax-deductible. But there’s a small exception. If you run a business from home, you might be able to deduct a portion under the home office deduction.

Not sure if you qualify? A tax professional can help you figure out the best way to maximize your deductions.

Are HOA Fees Worth It? Pros & Cons

Still unsure if HOA fees are worth it? Here’s a quick breakdown to help you decide.

Pros of HOA Fees

• Well-Maintained Neighborhood – The HOA takes care of landscaping, amenities, and shared spaces, so you don’t have to.
• Protects Property Value – Rules help keep the community looking nice, preventing neglected homes from lowering home values.
• Access to Amenities – Enjoy amenities like pools and gyms without worrying about upkeep.
• Less Disputes with Neighbors – HOAs enforce community rules, helping prevent issues like loud noise, unkempt yards, or parking problems.
• Safety & Security – Many HOA communities have added security features for a safer neighborhood.

Cons of HOA Fees

• Extra Monthly Cost – HOA fees can add hundreds to your budget, making homeownership more expensive.
• Rules & Restrictions – Some HOAs have strict policies on home exteriors, parking, and even things like holiday decorations.
• Fees Can Increase – HOAs can raise fees or charge one-time assessments for big repairs, sometimes without much warning.
• Limited Personalization – Want to paint your house a bold color or install a unique fence? Some HOAs have strict guidelines that limit customization.

If you love having amenities, a well-kept neighborhood, and added security, HOA fees might be worth it. But if you prefer fewer rules and more control over your home, you might want to think twice.

How to Evaluate HOA Fees Before Buying a Home

Before you commit to a home in an HOA community, make sure you know exactly what you’re signing up for. Here’s how to avoid surprise fees:

1. Ask for HOA Documents – Get a copy of the HOA’s rules, fee breakdown, and financial statements. This tells you what’s covered and if the HOA is financially stable.
2. Check the Reserve Fund – A healthy reserve fund means fewer surprise costs. If the HOA doesn’t have enough saved, you might get hit with extra charges for big repairs.
3. Compare with Similar Communities – Are the fees in line with other neighborhoods? If they’re much higher, find out why.
4. Talk to Homeowners – Ask neighbors if they feel the fees are fair and if they’ve ever dealt with unexpected increases. They’ll give you the real scoop.
5. Look at Fee Increases – Check how often fees have gone up in the past. If they keep climbing, expect to pay more over time.
6. Watch for Special Assessments – If the HOA has charged extra fees for repairs or emergencies before, it could be a sign of financial trouble.

Doing a little research now can save you from unexpected costs later. The goal is to make sure you’re getting good value for what you’re paying!

Learn more: HOA Special Assessments: What They Are, How They Work & Your Rights

Can You Lower HOA Fees?

While HOA fees are mandatory, there are ways to keep them in check:

• Show Up to HOA Meetings – Decisions about the budget happen here. If fees are going up, this is your chance to ask why.
• Question Unnecessary Expenses – If you see rising costs, ask for a breakdown. Where is the money going? Can anything be cut?
• Join the HOA Board – Want a real say? Becoming a board member lets you help decide how funds are managed.
• Push for Competitive Bidding – If the HOA isn’t shopping around for maintenance or management services, they might be overpaying. Get multiple quotes to keep costs fair.

Not all HOAs are open to change, but the more involved homeowners are, the more control they have over where their money goes. It never hurts to ask!

Final Thoughts

HOA fees can be a valuable investment or an added burden, this all depends on the community and what you’re getting in return. Before you buy, make sure to:

• Know What You’re Paying For – Understand exactly what the fees cover.
• Weigh the Costs vs. Benefits – Are the amenities worth the price?
• Think Long-Term – Consider how fees fit into your budget over time.

Thinking about moving into an HOA community? Do your research first to avoid surprises!

Managing HOA fees and budgets can get complicated, but BaseHOA makes it simple. With easy budgeting, expense tracking, and transparent financial reporting, BaseHOA helps homeowners and HOA boards keep their communities financially healthy and stress-free.

Get started with BaseHOA today and take the hassle out of HOA management!