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What is the highest HOA fee?

Published in HOA Fees 3 mins read

The highest average monthly homeowners association (HOA) fee observed among states recognized for having high fees is $469 a month. This figure represents the average in Missouri, making it the state with the highest reported average among those with the most substantial HOA costs.

Understanding High HOA Fees

Homeowners association (HOA) fees are recurring payments made by property owners within a planned community to cover the costs of maintaining common areas, shared amenities, and to fund reserve accounts for future major repairs and improvements. These fees can fluctuate significantly based on various factors, including the location, the range of amenities provided, and the specific management practices of the community.

States with the Highest Average HOA Fees

Based on recent data, several states report notably high average monthly HOA fees. Missouri leads this list with the highest average fee recorded. The table below illustrates the top states ranked by their average monthly HOA fees:

State Average Monthly HOA Fee
Missouri $469
Arizona $448
Oregon $402
Colorado $401
Maryland $401
Tennessee $400
Mississippi $396
Arkansas $394

Factors Influencing HOA Fees

The level of HOA fees is shaped by several key components, which dictate the community's operational budget and long-term financial planning. These typically include:

  • Amenities and Services: Communities offering a wide array of amenities such as swimming pools, fitness centers, clubhouses, golf courses, or private parks generally have higher fees due to the costs associated with their operation, maintenance, and staffing.
  • Location: Fees can vary by state, region, and even within different cities, influenced by local property values, the overall cost of living, and regional service costs for landscaping, security, and repairs.
  • Property Type: Condominiums and townhouses often incur higher HOA fees compared to single-family homes, as the association is frequently responsible for the exterior maintenance of individual units, roofs, and sometimes even shared utilities like water or trash collection.
  • Insurance Costs: A significant portion of HOA budgets is allocated to master insurance policies, which cover common areas and, in some cases, the structural integrity of the buildings themselves.
  • Reserve Funds: A vital component of HOA fees is the contribution to reserve funds. These funds are essential for long-term capital improvements and the replacement of major common elements like roads, roofing, and building exteriors, helping to prevent the need for large, unexpected special assessments.
  • Management and Administrative Expenses: Costs for professional management companies, legal services, accounting, and general administrative overhead also contribute to the overall fee structure.

Evaluating if an HOA Fee is "Too High"

While an average of $469 a month is a significant amount, determining whether an HOA fee is "too high" is ultimately subjective and depends on the specific services, amenities, and value provided in return, as well as an individual's personal budget. It is crucial for prospective homeowners to thoroughly review what services and amenities the fee covers and to examine the HOA's financial health, including its budget and reserve study, before making a purchase. A well-managed HOA can play a critical role in preserving property values and enriching the quality of life within a community.