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Home maintenance and repairs

HOA fees

Regular dues a homeowners or condo association charges owners to run and maintain the community, paid on top of the mortgage, taxes and insurance.

What It Means

HOA fees, or dues, are what a homeowners association or condo association charges each owner, usually monthly or yearly, to pay for the community's shared costsShared expensesCosts two or more people agree to split, such as rent, utilities, groceries or a shared subscription, as opposed to costs each person covers alone. See more. Depending on the association, that can cover common areas, shared building repairs and services. The Consumer Financial Protection Bureau (CFPB) explains that dues usually go straight to the association, separate from your mortgage paymentMortgageA loan used to buy or refinance a home, secured by the home itself and repaid in monthly installments over a set term. See more, but they still count as part of what your home costs you each month.

Try It: Add HOA Fees to Your Monthly Housing Cost

Example numbers to start. Put in your own loan payment, yearly bills and HOA dues.

Paid to the servicer$2,100
Total housing cost per month$2,350
HOA share of the total10.6%

HOA dues per year: $3,000. They usually go to the association, not the servicer.

How It Sounds at Home

  • "The HOA dues went up again this year."
  • "Our HOA covers the pool and the snow plowing."
  • "Don't forget the HOA payment, it's due on the first."

The Breakdown

Worked example. A condo buyer adds up the monthly cost:

PartMonthly
Principal and interestInterest rateThe yearly percentage a lender charges for borrowing money, not counting fees; the APR adds certain fees to show a fuller cost. See more$1,600
Property taxProperty taxA yearly tax your local government charges on real estate you own, worked out from the property's assessed value and the local tax rate. See more, $4,200 a year ÷ 12$350
Homeowners insurance, $1,800 a year ÷ 12$150
Paid to the mortgage servicer$2,100
HOA dues, paid to the association$250
Total housing cost$2,350

The mortgage statement shows $2,100, but the home actually costs $2,350 a month. The $250 is about 1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more.6% of the total and $3,000 over a year.

What moves the number. What the association maintains and insures, the age and condition of shared buildings, and any vote to raise dues or charge a special assessment. Before buying, ask the association for its current dues, its budgetBudgetA plan for a set period, usually a month, that lists the money you expect to receive and how you'll spend or save it. See more and any assessments planned, since the CFPB notes dues vary widely and change what home you can afford.

Good to Know

The CFPB says HOA dues are usually paid directly to the association and not included in your mortgage payment. A servicer may agree to add them to escrowEscrowOn a mortgage, an account your servicer keeps to pay your property taxes and homeowners insurance, funded by part of each monthly payment. See more if you ask, though that isn't common. Falling behind is serious: the CFPB warns unpaid dues can lead to debt collection and even foreclosure. On taxes, IRS Publication 530 (2025) says you can't deduct homeowners' association assessments on your home, because an association, not a state or local government, charges them.

FAQ

Are HOA fees included in my mortgage payment?

Usually not. The CFPB explains dues typically go directly to the association, though a servicer may add them to escrow on request.

Are HOA fees tax deductible?

Not on your home. IRS Publication 530 (2025) says homeowners' association assessments aren't deductibleInsurance deductibleThe part of a covered loss you pay yourself before your home, renters or auto insurance pays the rest, set as a dollar amount or a percentage. See more because the association, rather than a government, imposes them.

What happens if I don't pay HOA fees?

The CFPB warns you can face debt collection by the association and even foreclosure. Contact the association early if you're falling behind.

Do It in Buhata

Bills (Plus), Budget

With Plus, add your HOA dues to Bills as a repeating payment on its due date, so it sits beside the mortgage in your month.

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Related Terms and Categories

  • Mortgage

    A loan used to buy or refinance a home, secured by the home itself and repaid in monthly installments over a set term.

  • Escrow

    On a mortgage, an account your servicer keeps to pay your property taxes and homeowners insurance, funded by part of each monthly payment.

  • Property tax

    A yearly tax your local government charges on real estate you own, worked out from the property's assessed value and the local tax rate.

  • Closing costs

    The fees and upfront charges you pay to finalize a mortgage, apart from the down payment, itemized on your Loan Estimate and Closing Disclosure.

  • Down payment

    The share of a home's price you pay upfront in cash when you buy it; the mortgage covers the rest.

Home maintenance and repairs

Sources

Consumer Financial Protection Bureau, "Are condo/co-op fees or homeowners' association dues included in my monthly mortgage payment?"; CFPB, "Your mortgage calculator may be setting you up for a surprise"; IRS, Publication 530 (2025), "Tax Information for Homeowners"

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