What HOA fees actually cover
Single-family subdivision HOAs typically cover:
- Common-area maintenance (entrance landscaping, signage, shared streets if private, retention ponds).
- Amenities (pool, clubhouse, gym, tennis courts, dog park).
- Trash collection in some communities.
- Insurance for common-area liability.
- Reserve fund contributions for future major repairs.
Condo and townhouse HOAs cover everything above plus:
- Building exterior (roof, siding, paint, balconies).
- Master insurance (covers the structure; you still need an HO-6 policy for your interior).
- Water, sewer, sometimes gas/electric (varies by building).
- Elevator, lobby, hallways, parking garage maintenance.
What HOAs do not cover:
- Interior of your unit (always your problem).
- Property taxes (paid separately to the county).
- Your individual insurance (HO-3 single-family or HO-6 condo).
- Discretionary improvements specific to your property.
Typical fee ranges by property type (2025 data)
From Foundation for Community Association Research and Zillow Research, rolling 12-month medians:
| Property type | Monthly HOA range | Median |
|---|---|---|
| Single-family subdivision (basic) | $50–$300 | $175 |
| Single-family with amenities | $200–$600 | $350 |
| Townhouse | $250–$500 | $325 |
| Condo (low-rise, basic) | $300–$650 | $425 |
| Condo (mid-rise w/ amenities) | $500–$1,200 | $725 |
| Condo (high-rise / luxury) | $1,000–$2,500+ | $1,400 |
| Beachfront / resort community | $700–$3,000+ | $1,200 |
These numbers are baseline fees only. Special assessments (one-time charges for roof replacement, balcony repairs, etc.) are layered on top and can be $5,000–$50,000+ per unit in a poorly-funded building.
Resale disclosure rules
Most US states require the HOA to provide a resale certificate or resale disclosure package to a buyer before closing. Contents typically include:
- Current monthly fee and any planned increases.
- Reserve study — independent assessment of the HOA's reserve fund vs the cost of upcoming major repairs. Look at the percent funded: under 30% is a red flag, 70%+ is healthy.
- Recent special assessments (last 3–5 years) and any pending votes for new ones.
- CC&Rs (Covenants, Conditions & Restrictions) — the rules.
- Bylaws — the governance structure.
- Recent meeting minutes (often the previous 12 months). This is the underrated read — board minutes surface real conflicts, deferred maintenance, and lawsuits.
- Financial statements (current and prior fiscal year).
- Pending litigation — both by and against the HOA.
State law varies. California and Florida have the most stringent disclosure rules (Davis-Stirling Act in CA, Fla. Stat. §718 for condos in FL). Texas and most southern states are looser.
What to look for in an HOA before buying
Six items that determine whether the HOA is healthy:
- Reserve fund percent-funded. Under 30% means a special assessment is likely within 5 years. Over 70% is well-managed. The reserve study report tells you this directly.
- Litigation status. Pending lawsuits — especially construction-defect cases — can trigger massive special assessments or disqualify the building from FHA/VA financing.
- Owner-occupancy rate (condos especially). Below 50% owner-occupied makes FHA/VA financing harder; the building's long-term resale value usually weakens.
- Recent special-assessment history. One $8,000 assessment in 10 years is normal. Three assessments in 3 years is a sign of structural underfunding.
- Fee growth trajectory. Compare the fee 5 years ago to today. Annual growth above 6% indicates either reserves catching up or operating cost pressure.
- Restrictions you can live with. CC&Rs cover paint colors, parking, pets, rentals, fences, holiday decorations. Read the actual document — buyers regularly close and discover their plan to short-term rent or build a fence is forbidden.
Total cost of ownership including HOA
A $700/mo HOA on a $400,000 home is 2.1% of value annually — a major line item. Total recurring costs to model:
| Cost | Annual estimate (on $400k home, $700 HOA) |
|---|---|
| Mortgage P&I (30-yr, 6.75%, 20% down) | $24,900 |
| Property tax (national avg ~1.05%) | $4,200 |
| Homeowners insurance | $1,400 |
| HOA | $8,400 |
| Maintenance (1% of value) | $4,000 |
| Total annual carrying cost | $42,900 |
The HOA is the second-largest non-mortgage line item in this example, larger than property tax. See true cost of owning a home for the full carrying-cost model.
Common HOA pitfalls
- Buying without reading the meeting minutes. Minutes reveal the real fights — deferred elevator replacement, roof bids voted down, neighbour disputes. Spend an hour with 12 months of minutes before closing.
- Underestimating special-assessment risk. A poorly-funded reserve fund is a deferred bill. The Champlain Towers South collapse in 2021 changed Florida's reserve-funding rules (SB 4-D, effective 2025) for buildings 3+ stories — every such building must now have a Structural Integrity Reserve Study. Other states are following.
- Skipping the rental-restriction check. Many HOAs cap short-term rentals to 30 days, prohibit STRs entirely, or limit the number of rental units in the building. If your plan was Airbnb income, verify before buying.
- Assuming HOA fees are tax-deductible. They generally aren't for owner-occupants. They are deductible for rental property as an operating expense — confirm with a CPA.