Rent vs Buy
Condo vs. single-family home: what a $400/mo HOA actually costs you
Same $750,000 purchase price, same rate, same rent, same everything — the only difference between these two scenarios is a $400/mo condo HOA. Here's exactly what that one line item does to the true monthly cost and the long-term rent-vs-buy math.
Educational estimate only. Real HOA dues vary a lot by community — this isolates the HOA line specifically, using the calculator's own $750K default scenario for everything else.
The setup
$750,000, 20% down, 6.25% — with and without a $400/mo HOA
This is our Rent vs Buy calculator's own default scenario, run twice: once as a single-family home (no HOA), once as a condo (the calculator's $400/mo HOA default).
| Cost line | Single-family | Condo |
|---|---|---|
| Principal & interest | $3,694 | $3,694 |
| Property tax (1.25%/yr) | $781 | $781 |
| Homeowners insurance ($2,400/yr) | $200 | $200 |
| Maintenance reserve (1%/yr) | $625 | $625 |
| HOA | $0 | $400 |
| True monthly cost | $5,301 | $5,701 |
Cash to close is identical either way — $168,750 — since HOA doesn't affect the down payment or closing costs.
The long-term effect
A $400/mo HOA costs about $74,000 more by year 10 — and $228,000 more by year 20
The HOA doesn't just cost $400/mo directly — it also shrinks how much you can invest on the rent side each month, since it's part of the gap the calculator compares against rent. That gap compounds every year you hold.
| Year | Single-family gap | Condo gap |
|---|---|---|
| Year 5 | -$82,154 | -$112,219 |
| Year 10 | -$95,981 | -$170,231 |
| Year 15 | -$102,578 | -$240,428 |
| Year 20 | -$98,339 | -$326,357 |
Negative numbers mean renting and investing is ahead by that amount. In both cases buying stays behind through year 20 under these assumptions — the single-family gap holds fairly steady around $80,000-$100,000, while the HOA makes the condo gap keep widening, to over $326,000 by year 20.
What this doesn't capture
HOA dues aren't purely a cost — they often replace a maintenance cost you'd otherwise pay yourself
A single-family home with $0 HOA still has real exterior maintenance, roof, and landscaping costs — this comparison uses the same 1% maintenance reserve for both, which may understate single-family costs or overstate condo costs depending on what the condo's HOA actually covers.
Check what the HOA covers
Some HOAs include water, trash, exterior insurance, or amenities that a single-family owner would pay for separately — a $400/mo HOA isn't necessarily $400/mo of pure extra cost.
HOA dues can rise
Unlike a fixed-rate mortgage payment, HOA dues aren't fixed — special assessments and annual increases are common and not reflected in this comparison.
Next step
Enter the real HOA for a specific listing
This isolates one variable. Your actual HOA, price, and rent will all move the numbers — run the real ones on the calculator.