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HOA Appreciation Rate

Annual growth rate for HOA dues.

Example Result

Sample Data
3.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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HOA Appreciation Rate Formula

User Input (percentage)
User Input (percentage)
3.00%

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Why It Matters

HOA dues are one of the expenses investors most commonly underestimate in long-term projections. Many HOA boards raise fees 3-5% annually, and special assessments can cause sudden jumps. Modeling this growth rate accurately prevents overly optimistic cash flow projections.

Detailed Explanation

The HOA Appreciation Rate models how quickly homeowner association dues increase each year. HOA fees tend to rise with inflation and as buildings age and require more maintenance. The default assumption is 3% annual growth.

Example

Sample Result
3.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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