Homeowners associations are growing fast. The number of residents who are part of them or other associations such as planned or condominium communities or housing cooperatives has soared to 75.5 million residents in 28.2 million units in 365,000 communities across the country, according to the Foundation for Community Association Research, an industry research organization. In 1970, the 10,000 community associations were home to just 2.1 million residents. In 2023, the associations collected $108.8 billion in assessments of all types from homeowners.

"Assessments fund many essential association obligations, including professional management services, utilities, security, insurance, common area maintenance, landscaping, capital improvement projects and amenities like pools and clubhouses," the foundation's latest annual factbook said.

In 2021, residents paid an average of $191 a month and a median of $72 for homeowners or condominium association fees, according to the Department of Housing and Urban Development's American Housing Survey. Those figures may obscure how much many homeowners must pay their association for the fee and any other special assessments for particular maintenance or upgrade projects, an analysis by Quicken Loans said.

"HOA fees can vary widely depending on where you live, the type of home you're in and the association's amenities and services," the loan provider's blog post said. "Your monthly HOA fee may be less than $100 or more than $1,000. HOA fees typically cost $200- $300 per month on average. When house hunting, check the monthly fees for any HOA communities you're considering. It's not enough to be able to afford the mortgage payment. You must be able to comfortably afford your HOA fees to avoid potential fines, liens, lawsuits or even foreclosure. It's vital to factor HOA fees into your monthly housing costs."

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Since the IRS views the expense as "a personal expenditure," those dues are generally not tax-deductible for homeowners using the property as their main residence, according to Liting Chuang, the director of tax planning and an associate wealth advisor with Menlo Park, California-based Bordeaux Wealth Advisors. Rentals and business usage represent the two main exceptions, she said in an email.

"HOA dues paid on a property that is being rented out can be deducted as an ordinary and necessary rental expense. If the property is only partially being rented out, then take a proportionate share of the HOA dues as rental expense," Chuang said. "If part of the property that is subject to HOA dues is being used for business purposes, a proportionate share of the HOA dues can be deducted as business expense. This exception most likely will only apply to self-employed individuals (i.e. Schedule C filers)."

She and Oujo pointed out that the 2017 Tax Cuts and Jobs Act ended the possibility of a deduction for employees who work from home for a company owned by someone else — although that is one of many provisions that will expire at the end of next year. Certain employees could potentially offset the expense of homeowners association fees by getting a reimbursement from their company which, in turn, could get the deduction, Oujo said. 

But that would qualify "only if you work exclusively" from the home, he noted. "It would not work if you have an office to go to, because the IRS would take the position that that's your office."