What You’ll Pay in Property Taxes in Commerce City
As John and Sarah excitedly signed the papers on their new Commerce City home, their realtor reminded them: “Don’t forget to budget for property taxes and HOA fees each month, on top of your mortgage.” John’s eyes widened. He hadn’t factored those costs into their budget. How much extra would they be paying?
In Commerce City and similar suburban cities in Colorado, property tax rates typically range from 0.6%–1.2% of a home’s assessed value annually. The median property tax rate in Commerce City is around 0.8%. So for a $350,000 house, the typical homeowner pays about $2,800 per year, or $233 per month, in property taxes.
While Colorado’s property tax rates tend to be lower than the national average, these assessments still add hundreds to the monthly cost of homeownership. Property taxes fund critical city and county services like schools, road maintenance, and emergency responders. Rates can also vary by neighborhood, so it’s wise to check the specific tax history for any home you’re considering.
How HOA Fees Work in Commerce City
On top of property taxes, many homes in Commerce City neighborhoods and subdivisions also require monthly homeowners association (HOA) fees. These mandatory dues cover maintenance of common areas and amenities. In Commerce City, HOA fees often include services like:
- Trash and recycling collection
- Lawn care and landscaping of shared green spaces
- Maintenance of community pools, playgrounds, and clubhouses
- Irrigation and xeriscaping of common areas to conserve water
HOA fees are paid by all homeowners in a development, usually monthly or quarterly. They are separate from property taxes and go directly to the association. Most HOAs also have bylaws that govern exterior home aesthetics, parking rules, and permissible renovations to maintain a cohesive look and protect property values.
While they come with trade-offs, HOA communities are popular in suburban areas like Commerce City for their amenities and tidy appearance. About 60% of new single-family homes in the Denver metro are now part of an HOA, so understanding their fee structures is essential for house hunters.
Typical Monthly HOA Costs
So how much do HOA fees run in Commerce City? Typical HOA dues range from $100–$300 per month, but can span from under $50 in small, no-frills communities to over $500 in amenity-rich luxury developments.
| HOA Type | Typical Monthly Fee | Amenities |
|---|---|---|
| Basic neighborhood | $50–$150 | Trash service, common area maintenance |
| Average suburban | $150–$300 | Landscaping, clubhouse, pool, tennis courts |
| Luxury development | $300–$600+ | Guarded entry, gym, golf course, concierge |
| Example: $295k home with 0.8% tax + $150 HOA | $345 | Combined monthly tax and HOA cost |
🏆 For the best value, look for neighborhoods with average amenities and monthly fees around $150. These communities balance perks with affordability.
Hidden or Seasonal Fees to Expect
Beyond monthly dues, HOAs often have other fees that can catch homeowners by surprise, such as:
- New resident processing or move-in fees ($100–$500)
- Annual assessments for major repairs or improvements ($200–$1,000)
- Parking permit costs or guest parking fees ($25–$100)
- Pet registration charges ($20–$100 per year)
- Late payment penalties, usually a % of your overdue balance
Some HOAs also bill extra for [hidden fees](/commerce-city-co/local-hidden-fees/) like bulk trash pickup, exterior holiday decorations, or seasonal landscaping surcharges. Read your HOA agreement closely and ask about any additional costs before buying.
Are These Costs Worth It?
After seeing the potential price tag, you may be wondering: Are HOA fees really worth it? It depends on your priorities.
HOA communities often have nicer amenities, tidier landscaping, and stricter upkeep standards than non-HOA neighborhoods. This curb appeal can translate to higher resale values. In Commerce City, homes in well-managed HOAs often sell for 5–10% more than comparable non-HOA properties.
However, HOA living also means less freedom over your home’s look and potentially restrictive rules on things like parking, pets, and rentals. Some owners balk at paying monthly fees on top of a mortgage for services they could handle themselves.
Ultimately, deciding if an HOA fits your budget and lifestyle is a personal choice. Just be sure to factor fees into your [housing cost calculations](/commerce-city-co/housing-breakdown/) from the start.
FAQs About Property Tax and HOA in Commerce City
How much is the average HOA fee in Commerce City?
Typical HOA fees in Commerce City range from $100 to $300 per month, with most falling around $150–$250. Fees vary based on a community’s amenities and services.
Can my HOA fees increase?
Yes, HOA fees can increase over time to keep up with inflation, rising vendor costs, and major repairs. Most boards set budgets annually and require a majority vote to raise dues. Increases of 2–5% per year are common.
Do I pay both property tax and HOA fees?
Yes, property taxes and HOA fees are separate expenses. Property taxes go to the city and county, while HOA dues pay for maintenance of your specific community. You’ll owe both costs monthly in addition to your mortgage.
Final Cost Insights for Commerce City Homeowners
As John and Sarah discovered, property taxes and HOA fees can add hundreds to the monthly cost of owning a home in Commerce City. While Colorado’s tax rates are relatively low, the typical combined tax and HOA cost for a $300,000 suburban home is still around $300–$500 per month.
However, many residents find that HOA amenities, well-kept common areas, and strong resale values are worth the expense. The key is budgeting for these costs up front so you’re not blindsided like our couple.
If HOA living isn’t for you, there are also many non-HOA neighborhoods in the Commerce City area with lower monthly fees. Just be prepared to handle your own lawn care and trash pickup.
Whichever path you choose, understanding the full picture of property taxes, HOA dues, and [housing costs](/commerce-city-co/housing-breakdown/) is crucial to being a financially savvy homeowner in Commerce City. With careful planning, you can find the right fit for your budget and lifestyle in this welcoming Denver suburb.