Key takeaways

• Nearly 44% of homes for sale include an HOA fee, up sharply since 2019.

• Unpaid dues can lead to penalties, collections, or property liens.

• Accounting for HOA fees can give homeowners a more complete view of their monthly housing payment.

An increasingly common addition to America’s housing equation is homeowners association (HOA) fees, with 21.6 million households — 25% of the overall population — paying condo and HOA fees in 2024. Nationally, homeowners pay a median amount of $135 a month. However, amounts can vary drastically depending on the area, with some people paying monthly fees upwards of $300 or more.¹

What is a HOA fee?

A HOA fee is a charge (typically made monthly) to owners from the homeowners association. The organization then uses the funds to reinvest in the community and its common spaces.²

There are around 370,000 homeowners associations nationwide, which manage communities and provide shared features and services. In exchange, owners pay HOA fees to afford these benefits.^3,4

Who is paying HOA fees?

HOA fees are becoming more visible in the U.S. housing market: Last year, 43.6% of homes for sale in the U.S. included a HOA fee. That’s up from 41.9% in 2024 and 34.3% in 2019.⁵

Although HOAs are more common with condos and townhomes, people may encounter the associations no matter the type of real estate they’re browsing: In the past several years, all housing categories (home type, new construction, existing homes) have seen more listings include a homeowners association.⁶

What happens if you don’t pay HOA fees?

People who don’t pay their HOA fees on time can be charged additional fees for late payment and could even get sent to collections or have a lien taken out on their property until they are no longer delinquent. Governing documents outline exactly what an association can do if someone doesn’t pay their HOA fees. The HOA can have the right to raise the amount of dues to stay operating, so assessments may rise across the board if not enough owners pay the fees.⁷

What do HOA fees cover?

Since homeowners are paying into this fund regularly, taking the time to really understand what elements of the community the association covers — such as maintenance and landscaping — can help homeowners see if their own costly home expenses could be covered by the HOA.

For example, replacing a roof (which could cost $30,000 or more) can be the responsibility of the HOA, which could have a “walls out” master insurance policy.⁸

HOA fees could also cover:⁹

• Exterior repairs and cleaning

• Lighting fixtures in common areas

• Snow and waste removal

• Shared amenities like a fitness center or pool

• Pest control

To get the complete picture, consult the HOA’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which specifies all the rules and regulations. These can include policies around pets, parking, guests, common-area amenities, and exterior appearance and maintenance. These are the guiding principles that the association upholds, and a real-estate agent, HOA board member, or property management company can help get access to the documents.¹⁰

Managing the impact of HOA fees

While homeowners can’t singlehandedly change the amount of their HOA’s fees, they can manage how the expense fits into their own budget.

Consider how HOA fees are paid

Depending on the HOA’s setup, some may allow people to pay the fees in multiple ways, including paper checks, credit cards, debit cards, and direct bank (ACH) transfers. Digital payments could be more beneficial for homeowners who prefer automatic transfers or who could earn rewards on the transactions. Paper checks delivered in the mail or even in person may be a better fit for people who like the physical nature of paying. Additionally, people should check the disclosures to see if certain payment methods, such as using a credit card, carry additional charges.

Treat the HOA fee like part of a mortgage

HOA fees can be charged on a monthly basis, and homeowners can mentally reframe them — for budgeting purposes — as part of a regularly scheduled mortgage payment.¹¹ With homeownership being one of the top ways to build wealth, a slight change in mindset can position the fee as an everyday essential, rather than an extra bill. People considering buying in a community with HOA fees should add the ongoing cost to any calculations for their homebuying budget.

Are HOA fees tax deductible?

Generally, for most people using their home as a primary residence, HOA fees won’t be a deduction on their federal tax return.¹² Though there’s the possibility of making use of the home office deduction: Only self-employed people (not W-2 workers) can qualify, and the space has to be used exclusively for business purposes. So, a remote office worker receiving a W-2 and sitting at a desk in their living room would not be eligible.

People considering claiming this tax deduction can consult a tax professional to see if their HOA situation applies.

Planning ahead for HOA fees

The growing number of homeowners associations could mean these fees follow people into retirement.

HOA fees can be common in retirement developments like 55+ communities, though having home repairs and shared amenities like recreation areas and community rooms included can increase the perceived value.¹³

It’s important that people take HOA fees into account when planning their retirement income strategies, since they may be on a fixed income or have additional expenses, such as healthcare costs, to consider.

More than two in five people plan to move to a different city or state for retirement, and a house hunt could be a big part of the plans: 55% of Americans think that owning a home in retirement is a sign of happiness.