HOA fees can make or break a homebuyer’s budget.
A home in a homeowners association, condominium association or cooperative may come with shared amenities, maintenance, rules and community standards. It may also come with monthly or quarterly assessments, special assessments, rental restrictions and financial obligations that buyers need to understand before closing.
The U.S. Census Bureau reported that around 21.6 million of the nation’s 86.6 million owner households paid either condo or HOA fees in 2024. The national median monthly fee was $135, but roughly 3 million households paid more than $500 per month.
Key takeaways
- HOA and condo fees are part of the true monthly cost of ownership.
- Census reported a national median condo/HOA fee of $135 per month in 2024.
- Fees vary widely by state, property type, amenities and services.
- Buyers should review budgets, reserves, rules, insurance, meeting minutes and assessment history.
- Lenders may review association financial health for some properties.
- HOA fees are not optional once the buyer purchases in the community.
What HOA fees pay for
HOA fees, sometimes called assessments or dues, fund the association’s operations.
The Census Bureau describes homeowner associations as nonprofit organizations that manage housing, often in planned or gated communities, and collect fees to manage common areas and amenities. Condo fees can cover more shared services and structural features such as roofs and hallways.
Depending on the community, fees may pay for:
- landscaping,
- security,
- common-area maintenance,
- building insurance,
- exterior repairs,
- roof or elevator reserves,
- pools and clubhouses,
- roads or gates,
- management fees,
- utilities for shared areas,
- and reserve funds.
The Foundation for Community Association Research estimated that community associations collected $120.9 billion in assessments in 2024, with assessment dollars funding obligations such as management, utilities, insurance, common-area maintenance, landscaping, capital projects and amenities.
Why HOA fees affect affordability
A buyer may qualify for a mortgage based on principal and interest, then discover that HOA dues materially change the monthly cost.
The Census Bureau reported that the amount of condo and HOA fees differed widely between and within states. In 2024, about 5.6 million homes paid less than $50 per month, while about 3 million paid more than $500 per month.
A $400 monthly fee can affect buying power almost like a higher mortgage payment. For condos, fees may be even more important because they can cover building-level maintenance, shared insurance and major systems.
What buyers should review
Before closing, buyers should review the association documents carefully.
The Community Associations Institute recommends that buyers ask how much assessments are, when payments are due, what the assessments cover, what is not covered, how often assessments can increase, whether the association has healthy reserves and whether special assessments have been levied.
A practical buyer checklist includes:
- current monthly or quarterly dues,
- what dues cover,
- what the owner must pay separately,
- current budget,
- reserve study or reserve schedule,
- insurance coverage,
- recent meeting minutes,
- pending litigation,
- special assessment history,
- rental restrictions,
- pet rules,
- parking rules,
- architectural restrictions,
- delinquency rates if available,
- and any upcoming capital projects.
Rules matter as much as fees
HOA fees are only one part of the decision.
Buying in an association means agreeing to community rules. CAI’s buyer guide recommends reviewing rules related to rentals, pets, flags, antennas, satellite dishes, solar panels, clotheslines, fences, patios, parking and home businesses.
Those rules may be acceptable to one buyer and unacceptable to another. A buyer who wants to rent the home, install solar panels, run a home business or park a work vehicle should review rules before closing.
Special assessments and reserves
A low HOA fee is not always good news.
If dues are too low to maintain the property, the association may lack reserves for major repairs. NAR advises buyers to factor in HOA fees and notes that HOAs may collect one-time special assessments to cover unexpected costs when reserve funds are inadequate.
A buyer should not only ask, “How much are the dues?” The better question is: “Are the dues high enough to fund what the community needs?”
What this means
HOA fees are not just another monthly bill. They are a package of services, restrictions, financial obligations and shared risk.
Buyers should review association documents early enough to act before deadlines expire. Sellers should be ready to provide accurate documents. Agents should encourage buyers to understand both the lifestyle and the financial health of the community.
A home with HOA fees can be a good fit, but only if the buyer understands what those fees buy and what obligations come with them.
FAQ
What are HOA fees?
HOA fees are assessments paid by homeowners to fund association operations, shared maintenance, amenities, management and reserves.
How much are HOA fees?
The Census Bureau reported a national median condo/HOA fee of $135 per month in 2024, but fees vary widely. About 3 million homes paid more than $500 per month.
Are HOA fees optional?
No. If a buyer purchases in a mandatory association, the buyer is generally required to pay dues and follow the association’s governing documents.
Can HOA fees increase?
Yes. CAI recommends buyers ask how often assessments can increase and by how much before purchasing.
What is a special assessment?
A special assessment is an additional charge beyond regular dues, often used for unexpected costs or major projects when reserves are inadequate.
What should buyers review before closing?
Buyers should review dues, budget, reserves, insurance, meeting minutes, rules, restrictions, special assessments and financial health.
Sources with clickable URLs
- [U.S. Census Bureau — Condo and HOA Fees in 2024](https://www.census.gov/library/stories/2025/09/condo-hoa-fees.html)
- [Foundation for Community Association Research — 2024 Statistical Review](https://foundation.caionline.org/wp-content/uploads/2025/03/FBStatsReview2024web.pdf)
- [Community Associations Institute — First-Time Buyer Guide to HOAs](https://www.caionline.org/getmedia/9a2b11e6-09a5-4d57-95b3-6126184b866e/firsttimebuyersguidetohoasreview.pdf)
- [NAR — Navigating HOA Rules](https://www.nar.realtor/news/real-estate-news/navigating-hoa-rules-considerations-for-real-estate-agents-buyers-and-sellers)
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