As baby boomers reach retirement age, many are looking to downsize into senior living communities. For those on a fixed income, finding a community with low HOA fees can make all the difference in stretching savings further. The good news is there are quality options across the country that won’t break the bank.
When evaluating retirement communities, prospective residents should look beyond just the HOA fee. Important factors like amenities, home styles, location conveniences, and healthcare options significantly impact the quality of life. While fees and budgets matter, they shouldn’t be the only deciding factor.
This guide covers tips for minimizing retirement community costs and highlights affordable 55+ communities in different states. We’ll look at what’s included in HOA fees, questions to ask about budgets, and resources to help finance a move. If affordable senior living is a priority, read on for ways to find the perfect community without high ongoing expenses.
What’s Typically Included in HOA Fees
Homeowners Association (HOA) fees encompass services and amenities provided by a senior living community. Also called maintenance fees, they represent the shared costs residents pay for communal perks and upkeep. Since specific details can vary significantly, it’s important to understand exactly what’s covered before signing a contract.
Typical expenses bundled into monthly HOA fees for retirement communities include:
● Landscaping and lawn/grounds care
● Common area utility costs
● Community amenity maintenance (clubhouse, pool, fitness center, etc.)
● 24/7 security or emergency alert systems
● General community management and administration
● Maintenance staff and management salaries
● Property taxes and property/liability insurance
● Reserve fund contributions (for future capital projects and improvements)
● Trash collection and recycling services
● Light interior home maintenance (exterior and major systems excluded)
● Basic cable TV package
Additional/Optional Services
While the list above captures most standard HOA fee inclusions, some retirement communities provide extra services for additional fees if desired. These optional add-ons allow customization based on needs and budget.
Common optional services offered include:
● Upgraded cable/TV packages
● Covered parking
● Personal transportation (scheduled community shuttle)
● Housekeeping assistance
● Yard maintenance (garden planting, weeding, etc.)
● Handyman services
● Pet care services
● Meal plans
● Fitness/wellness classes
● Excursion trips
● Moving coordination
● Home healthcare
Clearly understanding both basic and optional services before moving in allows for finding the best fit community aligned with requirements and financial realities.
Average National HOA Fees
HOA fees can vary dramatically based on factors like location, specific amenities, and community type. Due to these differences, there is no universal average that applies across the board. However, looking at national averages and ranges helps provide an approximate baseline for budgeting purposes.
According to the 2022 National Survey of Community Association Homeowners:
● The average monthly HOA fee for all community types is $302.
● Retirement communities specifically have above average fees ($401/month average).
● High-rise condo communities have the highest average at $651/month.
Another study by Homes.com analyzed listed properties for sale to determine average retirement community HOA fees by state:
● The lowest state average was $136/month (Mississippi)
● The highest state average was $612/month (Alaska)
● The most budget-friendly regions overall are the Southeast, Midwest, and Southcentral states.
While these figures provide helpful guidelines, keep in mind details vary significantly even within the same metro area. Focusing on ranges instead of averages gives a better picture of realistic expectations.
Factors Impacting HOA Fee Amounts
Since HOA fees are based on collectively sharing community costs, several key factors impact the monthly amounts:
● Location – Property values, taxes, utilities, and labor influence budgets.
● Amenities – Lavish clubhouses, golf courses, and luxury features raise costs.
● Property features – Landscape size, age of infrastructure, and construction materials all contribute.
● Management efficiency – Competent planning, oversight, and cost optimization keep budgets down.
● Included services – More bundled benefits mean higher fees to cover them.
● Reserve funding – Well-funded reserves for future projects reduce the likelihood of special assessments.
Weighing these contributing factors helps gauge if a community’s HOA fees align with the value provided. Review budgets meticulously since fees only capture a snapshot in time – someday special assessments could arise.
Questions to Ask About HOA Fees
Prospective residents should come armed with smart budget questions when touring communities and meeting management. Key details to inquire about upfront include:
● Are utility costs included in the fees or separate? Understanding the full cost picture is crucial. If residents pay electric, gas, water, and other utilities separately on top of HOA fees, total housing costs add up quickly.
● How often have fees increased historically and by how much? Regular incremental increases beat infrequent extreme hikes that shock budgets later down the road. Ask for a 10-year history showing trends.
● What large future repair/replacement projects are scheduled and how are reserves being funded to pay for them? Avoid communities kicking the can down the road on big expenses – make sure funding plans prevent future special assessments.
● Have special assessments ever been needed to pay for unplanned infrastructure failures or disasters? While nothing eliminates the risk completely, a solid history suggests responsible planning and preparation.
● How responsive is management with maintenance issues and budgeting concerns? Engaged administration focused on residential satisfaction typically proves most budget friendly long-term.
The True Value of Low HOA Fees
When prioritizing affordability, homebuyers may fixate solely on rock-bottom HOA rates. However, this shortcut often backfires in reality. An extremely low monthly fee can stem from irresponsible budgeting and lack of community upkeep – meaning hefty special assessments get passed on later.
On the other hand, a slightly higher but thoughtfully calculated HOA fee demonstrates planning and care for the future. Residents benefit from regular community enhancements and budget stability. So while fees absolutely impact affordability, understand why amounts are set at certain levels.
The true value comes from balancing livability and lifestyle amenities with budget realities. Don’t settle for a run-down community just because fees are cheap. But also recognize elaborate resort-style features and gold-plated service boost costs substantially. Seek reasonable value at middle-ground price matching priorities.
Federal and State Programs to Help Fund Senior Housing
If current retirement savings still fall short of comfortable affordability thresholds, government, and nonprofit programs provide housing assistance for qualifying applicants. These support channels help offset community costs to make independent living possible on limited means.
Section 202 Housing for the Elderly
This HUD-funded program offers apartment-style homes for low-income seniors unable to secure affordable private housing. Aid comes in the form of below-market rental rates to keep housing costs at 30% of adjusted gross income. Services promote independent living for as long as reasonably possible.
HUD Home Equity Conversion Mortgages (HECM)
Through these federally insured reverse mortgages, homeowners 62+ access home equity without selling. This lump-sum or line-of-credit financing option helps fund a move to a senior community while retaining ownership of the current home.
State Property Tax Exemptions
Many states and counties offer property tax discounts or exemptions to qualifying seniors that help lower living costs. These programs help offset community expenses based on financial need, disabilities, widow/widower status, or other criteria.
Medicaid Home and Community-Based Services (HCBS) Waivers
In addition to healthcare support, Medicaid HCBS waivers provide specific housing assistance programs on a needs basis. Benefits depend on individual states but help subsidize rent costs, facility transitions, and home modifications for safety and accessibility.
Affordable 55+ Communities by State
While local variances apply everywhere, some states tend to offer better selections of budget-friendly retirement housing overall thanks to lower land costs, taxes, and general cost of living expenses. Highlighted below are great states to consider if you need to stretch retirement dollars while enjoying an active 55+ lifestyle:
Alabama
Communities like Oak Tree Village and Cherokee Village offer resort-style amenities like pools, fitness centers, and scenic walking trails at below average regional rates. One-story cottages and spacious floor plans keep HOA fees low since less shared infrastructure to maintain.
Arkansas
Arkansas wins for affordable Ozark Mountain and Hot Springs Village gems with impressive offerings at reasonable price points. Choose from golf, boating, and community centers with the beauty of nature right outside the door for just $200 - $400 in average monthly fees.
Florida
Despite its popularity with snowbird retirees, surprising Florida gems exist by avoiding glitzy high-rises and tourist hotspots. The Villages stands out for its endless amenities and activities at over 75 unique neighborhood settings. Monthly fees range from $145 - $250.
Georgia
Mild weather and southern small-town charm make Georgia shine as an affordable alternative to Florida. Actively managed communities like Sun City Peachtree and Del Webb Lake Oconee offer robust programming with average HOA fees of around $250 monthly.
Indiana
Midwestern values and friendly communities make Indiana a targeted state by those seeking four-season living without high costs. Areas like Bloomington, West Lafayette, and Fort Wayne earn recognition for affordable culture, healthcare, and attractions to enrich retirement living by around $350 monthly.
Iowa
Continually ranked one of the most livable states overall, Iowa takes top marks for affordability too. Picturesque towns selected as “fiber-friendly” help retiring boomers settle smoothly with an emphasis on engagement. Check Cumming, Indianola, Nevada, and West Des Moines for safe bets.
Michigan
Economic incentives in Michigan cater to seniors seeking four-season variety at Midwest rates. Tax incentives along with affordable new builds by trusted national developers make it easy to align with just about any budget level.
***Missouri ***
Missouri shines with scenic pastoral beauty plus O z a r k s charm at pleasing price points. Retirees flock to Branson for its entertainment scene and Table Rock Lake recreational bliss for over $400 monthly including amenities. The just over 2% income tax rate keeps costs down too.
***New Mexico ***
A unique southwestern vibe amid a mild high-desert climate, New Mexico lures value-focused retirees to destinations like Las Cruces and Taos for under $350 monthly. Historic Hispanic influences fuse with diverse artistry and cultural appeal.
North Carolina
Balmy weather plus championship golfing and attractive pricing lands North Carolina on nearly every “best retirement state” list, year over year. nature excursions blend effortlessly with urban conveniences for HOA fees averaging just over $200 for access to impressive community amenities.
South Carolina
Charming low-country living or the dramatic Blue Ridge Mountains choose your backdrop wisely in South Carolina. Plus lakefront, beach, or city options to cater across interests. The Myrtle Beach metro has popularity with seasonal northern migrants.
Tennessee
Another southeast favorite for retirement relocation, Tennessee tempts with natural wonders across distinct regions. Nashville’s vibrant urban environment competes against Memphis's musical legacy while Knoxville impresses between the Smoky and Cumberland Mountain ranges.
Key Takeaways
The terms “affordable” and “retirement community” don’t need to be mutually exclusive descriptors. Taking time to analyze communities on fuller criteria beyond just HOA rates leads to optimal living. Consider conveniences, amenities, services, and intangibles before setting budgets too narrowly.
While monthly fees indicate operational health, don’t fixate solely on sticker price. Calculate total costs of ownership inclusive of taxes, insurance, utilities, and optional services. Finally, align expectations around trade-offs between costs, features, and priorities for your version of an ideal community.
FAQ
What is considered a low HOA fee?
HOA fees under $350 per month fall on the low end, with anything under $250 considered very affordable. However, geographic and community variances mean a global “low fee” doesn’t apply universally. Focus instead on rates relative to your area and amenity comparables.
Which states have the most affordable retirement communities?
Midwest and Southeast states tend to offer the best combination of budget costs and appealing retirement living amenities. Indiana, Missouri, North Carolina, and South Carolina rank as some of the most popular affordable active retirement destinations.
Can I negotiate HOA fees?
Since HOA fees apply community-wide, there is no room for household-by-household fee adjustments. However, new residents can try negotiating a temporary promotional rate or move-in concession during initial sales discussions to help offset costs short term.
Are HOA fees fixed forever?
While associations try keeping rates stable, HOA fees do normally increase a small percentage over time. Make sure to understand the community’s history and budget philosophy before assuming fees will stay flat indefinitely. Account for reasonable incremental hikes in financial planning.
Should I avoid communities with very high/very low HOA fees?
Yes, very high fees signal overbuilt amenities and expensive overhead. But rock-bottom fees often indicate deferred maintenance issues that lead to big special assessments later. Seek balance and fair value for the lifestyle experience provided.
