What is an HOA fee?

An HOA (homeowners association) fee is a monthly or annual charge that homeowners pay to cover the costs of maintaining and managing a residential community. These fees fund services like landscaping, snow removal, and common area maintenance. They also pay for amenities like swimming pools, fitness centers, and clubhouses. According to data from the Foundation for Community Association Research, more than 30% of the homes in the U.S., representing over 75 million residents, belong to an HOA.

HOA fees defined

HOA fees (sometimes called HOA dues) are charges billed monthly, quarterly, or annually that homeowner members within that HOA pay to their local homeowners association. This expense, which can be mandatory or voluntary (depending on the HOA), helps cover the cost of maintaining shared amenities and ensuring upkeep of community buildings in the neighborhood, which can include condos, townhomes, and/or single-family homes. This structure is similar to how condominium and co-op communities and condo associations charge their residents, but it isn’t quite the same.

“In my Seattle market, HOA fees are most common with condos and townhomes, where residents share amenities, building systems, and exterior maintenance,” says real estate broker Alicia Terry.

Since an HOA is a nonprofit organization, association members, usually consisting of homeowners who live in the community, share the responsibility of enforcing HOA rules and bylaws and managing common areas. HOA fees make this possible by funding the association’s initiatives.

What do HOA fees cover?

As mentioned, HOA fees generate the funds needed to create and maintain the community’s amenities, but they’re typically used for more administrative purposes, too.

Here’s a list of what expenses may be covered by the HOA fees you pay:

• Civic services: Some HOA dues help cover the cost of trash removal, snow removal, pest control, lawn care, landscaping, utilities, and security.
• Shared area maintenance: The expenses associated with maintaining shared areas, such as swimming pools, fitness centers, clubhouses, tennis courts, and outdoor dining spaces, are funded by HOA payments.
• Administration and management: HOA fees often fund the salaries of on-site staff or professional property management companies in charge of daily operations and enforcing community rules. These assessments can also cover necessary administrative overhead costs like legal services, accounting audits, insurance premiums, and the cost of communicating with residents.
• Community services: Many high-end HOAs offer amenities that include valet services, concierge services, or on-site fitness centers. These extras are managed and paid for by your association.
• Liability insurance: HOAs are required to purchase insurance coverage for any injuries that could occur on community property. Homeowners will still need to get their own insurance policy, though.
• Reserve funds: A portion of monthly HOA fees is commonly kept in a dedicated reserve account intended to build a long-term financial cushion for things like major capital repairs and replacements. These funds guarantee that the HOA can eventually pay for high-cost projects, such as road repaving, roof replacements, or pool resurfacing, without having to levy a sudden special assessment on homeowners.

Before purchasing a home connected to an HOA, take the time to research the HOA’s covenants, conditions, and restrictions (CC&R), along with its amenities. That way you’ll better understand what’s allowed in the community and the services that are available to homeowners.

Additional HOA-related costs

In certain cases, you may need to make additional payments to your HOA, including:

• Special assessments: An HOA may periodically require residents to pay “special assessments” to help cover expensive repairs or nonroutine maintenance when their reserve funds run low. Special assessments are typically only imposed following natural disasters or excessive property damage. Be aware that some states, like California, may have laws limiting special assessments to a certain percentage of the association’s annual gross budgeted expenses.
• Fines: Failure to comply with the rules of your HOA can result in you paying a fine. Your community’s CC&R should outline the potential fines and amounts you’ll pay upon a violation. Fines can go beyond just neighborhood conduct; you can be fined, for example, for simply painting your home the wrong color.

How much are average HOA fees?

Homeowners have seen a steady climb in their monthly association costs, with median dues rising from $108 in 2019 to $125 in 2024 and reaching $135 in 2025, per Realtor.com data.

“Within my Raleigh, North Carolina, market, I’ve seen properties that range from having minimal HOA fees for basic lawn care to luxury properties that include amenities that cost significantly more,” says Realtor Ryan Fitzgerald. “Generally, waterfront properties and golf course properties command the highest amounts per month.”

Different factors can impact the cost of HOA fees, such as your geographic location, real estate market, community features, state and local laws, and inflation. HOA dues can also depend on the type of property you own. For instance, a single-family home may have higher HOA fees than a condo, and a co-op may have higher fees than a condo association.

Take the time to learn how much you’ll pay in HOA fees for a particular property by asking your real estate agent or the home seller, checking the property listing, or contacting the HOA directly.

How do you pay HOA fees?

You can typically pay your HOA fees online, in person, or by mail using a credit card, check, or cash. In most cases, your HOA dues won’t be included in your monthly mortgage payment. That’s because your fees will go directly to your HOA and not your mortgage servicer.

In some cases, your mortgage lender may set up a separate escrow account for the purpose of paying for HOA dues.

“I recommend setting up an automated payment method to prevent incurring late fees,” says Fitzgerald.

Can HOA fees be waived?

If you’re moving into a new home with an HOA, you’ll most likely have to pay fees. If the HOA is a voluntary association, you could opt out and avoid the fees. However, this may mean you won’t have access to shared areas, such as a community swimming pool or clubhouse.

“HOA fees generally cannot be waived because they are part of the ownership obligations within the association,” Terry adds.

If you can demonstrate a legitimate financial hardship, such as a job loss or medical crisis, your HOA may provide temporary financial relief in the form of a payment plan, fee reductions, or deferrals. To qualify, you must typically get board approval by submitting an application and supporting documentation, such as unemployment filings or bank statements. Keep in mind that policies vary by community and are intended only as short-term solutions.

Are HOA fees tax-deductible?

Unfortunately, HOA fees aren’t tax-deductible for most homeowners living in a primary residence. But if your home is used as a rental property or home business, your HOA payments may be deductible as a business expense. Consult with a trusted tax expert for full rules and applicability and to explore other possible tax deductions.

What happens if you don’t pay your HOA dues?

Failure to pay mandatory community association fees can result in suspended privileges, late fees, legal actions, and even a lien on your property. While HOAs can’t evict you the same way a property owner can evict a tenant, in some states, the HOA can repossess the home through the foreclosure process if you don't pay your fees for an extended period.

For example, in North Carolina, a lien by an HOA is subordinate to the lien of a mortgage holder with a recorded mortgage against the homeowner first. “But foreclosure actions are still possible, which adds a significant amount of expense and complexity to the legal process,” says Fitzgerald.

Meanwhile, in Texas, HOAs can foreclose on your property for unpaid fees if their governing documents explicitly allow it and they provide multiple written notices. To complete the sale, the association usually must obtain a court order via a standard lawsuit or an expedited legal process.

If you fall behind on fees, contact your HOA board immediately to explain your extenuating circumstances and ask about options, including a payment plan. The HOA may be willing to work with you if you are proactive and honest, which may be less costly to them than taking legal action.

Tips for buying properties with HOA fees

Eager to purchase a property in an HOA? You’ll want to:

• Carefully review the HOA documents. “Request and examine the governing documents, budget, and minutes from the last 12 months, which will provide insight into how financially healthy the association is and any issues you could be facing down the road,” recommends Fitzgerald.
• Learn what the community’s HOA fees will and won’t cover.
• Review the frequency and amounts of past HOA fee increases.
• Check the status of the reserve fund. This could indicate the likelihood of special assessments that add to your costs. “A healthy reserve fund will be 70% to 90% funded. This means the HOA can handle significant repairs without assessing owner fees,” Fitzgerald adds.
• Speak with current HOA residents about their thoughts on responsiveness and quality of management.

The bottom line: Understand what an HOA fee is before you buy

HOA fees are often a necessary expense if you want to buy a home connected to a homeowners association. Although pricey in some cases, these payments are intended to benefit the community and ensure that its members continue to enjoy shared amenities in well-maintained areas. But carefully weigh the HOA fees you would pay against the amenities offered in the community before purchasing a property and ensure you can afford these fees alongside your mortgage financing and other homeowner-related expenses.

If you’re ready to buy a home in an HOA community or elsewhere, you can start the loan process today with Rocket Mortgage.