The study calculated the average HOA fee in each state using two data points from the Foundation for Community Association Research (the total amount paid towards HOAs and the number of homes in associations). 

The average monthly HOA is nearly $200 higher in Missouri ($469) than in Wisconsin ($277). But for most states (43, in total), the average monthly fee ranges from $300 to $400.

Comparing HOA fees to median home values, it’s possible to better understand where HOA fees are disproportionately high. 

The average annual HOA fee exceeds 3% of the median home value in two states: West Virginia and Mississippi. In West Virginia, the average annual HOA fee is $4,700 compared to a median home value of $143,200. Meanwhile, in Mississippi, the average annual HOA fee is $4,750, and the median home value stands at $145,600. 

Interestingly, these are two of the states with the lowest prevalence of HOAs, with only 4.2% and 2.5% of homes participating in community associations, respectively. This trend holds true across states with a significant negative correlation between the percentage of homes in HOAs and relative fees.

While distinguishing between the two factors is difficult, the data suggests that fees (especially relative fees based on the cost of living) are an important factor for individuals deciding to live in or join a community association. 

Methodology

Data on the prevalence of HOAs comes from the Foundation for Community Association Research and is as of 2021. To calculate the average HOA fees, the study considered:

• Total amount paid toward community association fees.
• Number of homes in HOAs.

Researchers divided the total amount paid towards community association fees by the number of homes in HOAs to determine the average annual (and monthly) fee per home.

This story was produced by Today’s Homeowner and reviewed and distributed by Stacker Media.