Raising HOA Dues: A Balanced and Fair Approach
Updated October 26, 2026
Let's be honest: nobody runs for the HOA board because they love budget spreadsheets. But setting the annual assessment (what many owners call their HOA dues) is one of the most important jobs a board has, and few jobs cause more argument. Costs kept climbing in 2026, and homeowners are watching every line of their monthly bills.
The numbers back that up. Realtor.com reports that the median HOA fee rose to $135 a month in 2025, up from $125 the year before and $108 in 2019. In a February 2026 LendingTree survey, 82% of HOA residents said their fees had gone up in the past three years, and 44% called the increase significant.
Your job is to keep the association financially healthy without pricing your neighbors out. This guide walks through how to do that in 2026.
Regular vs. Special Assessments
Before you plan an increase, make sure everyone is using the same language:
- Regular assessments are the recurring amounts owners pay, monthly, quarterly or annually, to cover the operating budget and reserve contributions.
- Special assessments are one-time charges for costs the budget and reserves can't cover, like an unexpected roof replacement or an insurance deductible after a storm.
A well-planned increase to regular assessments is almost always easier on owners than a surprise special assessment later. Most of this guide is about getting the regular assessment right so you don't need the special one.
Free Download
We understand that raising HOA dues is a sensitive and complex issue that requires a thoughtful approach. To aid your community in this important matter, we've crafted an essential guide, complete with a customizable announcement letter and FAQs, now available for download.
Why Assessments Are Rising in 2026
Insurance
Property and liability premiums are still the biggest single pressure on most association budgets, especially in coastal and wildfire-prone states. Many associations have absorbed double-digit premium increases two or three years in a row.
Inflation
Inflation is running above the old 2–3% range. The Bureau of Labor Statistics reported that consumer prices rose 3.7% over the 12 months ending September 2026, and 2.6% when food and energy are excluded. Landscaping, utilities, repairs and management contracts have all gone up with it.
Reserve requirements
States are tightening reserve rules, and Florida is the clearest example. Under the condo laws passed after the Surfside collapse, and revised by HB 913 in 2025, condominium associations must complete a Structural Integrity Reserve Study (SIRS). They must then fully fund reserves for the structural items it identifies, and owners can no longer vote to waive that funding. For many Florida condos, this has meant large assessment increases or special assessments. Boards in other states should expect similar scrutiny from lenders and insurers, who increasingly ask for a current reserve study. (Florida boards: see our guide to 2026 website requirements for Florida HOAs and condos, too.)
Buyer sentiment
Assessments affect resale value. In the same LendingTree survey, 73% of people who don't live in an HOA said they would be unlikely to choose an HOA property if buying today. That's why every increase needs a clear explanation of what owners get for the money.
How Much Should You Raise HOA Assessments?
There's no single right percentage, but these guidelines will help your board land on a number you can defend at the annual meeting.
- Start with inflation as the floor. Raising assessments at least in line with inflation keeps the association's buying power steady. With inflation near 3–4% in 2026, an increase below that is effectively a cut.
- Build the budget from actual costs. Compare current contracts, insurance renewals and utility rates against last year's budget line by line. Insurance renewal quotes are the item most likely to surprise you, so get them early. Our Better Budget Basics for HOAs guide walks through the process.
- Follow your reserve study. A current reserve study shows what you need to set aside for roofs, paving, pools and other major components. If you're underfunded, a planned, gradual increase is almost always better than a special assessment later.
- Look at your history. Associations that held assessments flat for several years often face a bigger catch-up increase. Small, regular increases are easier for owners to absorb.
- Check legal limits. Many states and governing documents cap how much the regular assessment can rise each year without a membership vote. Confirm your limits with your attorney before the budget meeting.
- Consider affordability. Think about fixed-income and first-time owners. Where an increase is unavoidable, phase it in over two or three years, or look at financing options your state allows.
- Look for savings first. Before you raise assessments, look at what you're paying for administration. Moving announcements, documents and payments online can trim printing, postage and management costs, and every dollar saved there is a dollar owners don't have to cover.
Free Download: Assessment Increase Template
Raising assessments is sensitive, and the way you announce it matters. Our free template includes a customizable announcement letter that explains the reason for the increase, cites your governing documents, breaks down the budget changes and lays out next steps. It also comes with a ready-to-use FAQ.
Free Download - HOA Assessment Increase Template
Communicating the Increase
Most pushback comes from surprise, not from the dollar amount. Clear, early communication builds trust. For more ideas, see our guide to HOA communication.
- Start from a template. Our assessment increase template gives you a ready-made announcement letter and FAQ to adapt.
- Announce early. Give owners as much notice as you can, and at least as much as your governing documents and state law require, so they can plan their budgets.
- Explain the reasons. Name the specific drivers, such as an insurance renewal, a reserve shortfall or a contract increase, with dollar amounts.
- Show where the money goes. A simple breakdown or chart of the budget helps owners see what their assessment pays for.
- Use every channel. Post the announcement on your community website and resident portal, and send it by email, newsletter and postal mail for owners who aren't online.
- Hold an open meeting. Give owners a chance to ask questions directly. Offer a virtual option so more people can attend.
- Publish an FAQ. Answer common questions in one place and keep it updated as new ones come in.
- Collect feedback. A short online survey or a dedicated email address lets owners raise concerns without having to speak up at a meeting.
- Follow up. After the meeting, send a summary of what was discussed, what was decided and what happens next.
A community website with a resident portal makes all of this much easier. Budgets, reserve studies, meeting minutes and FAQs live in one place, owners can pay their assessments online, and residents can find answers without calling a board member at dinner time.
Plan for the Long Term
The best way to avoid a painful increase is to plan for it years in advance.
- Update your reserve study every three to five years, or sooner if costs change sharply.
- Shop insurance early and review deductibles and coverage with your broker each year.
- Adopt a multi-year budget so owners can see expected increases coming.
- Involve residents in budget workshops or a finance committee. Owners who help shape the budget are more likely to support it.
Balancing Investment and Affordability
Every assessment decision is a tradeoff between taking care of the community and keeping it affordable. Increases are easier to accept when owners can see the results: well-kept common areas, a healthy reserve fund and fewer surprise special assessments.
Conclusion
Assessment increases are hard to avoid in 2026, but they don't have to cause conflict. Base the increase on real costs and a current reserve study, explain it early and openly, and plan ahead so future increases stay small. Doing this protects both the association's finances and your neighbors' trust.
