Illustrative roof gable against trees — Illustrative architecture. Not the subject property.

15% reserve allocation calculator for condo and HOA budgets

Fannie Mae measures reserve allocation as a share of annual budgeted assessment income, net of four permitted exclusions. The minimum is 10% for loan applications from March 18, 2026 through January 3, 2027 and 15% for those dated on or after January 4, 2027. Type the budget lines and read both tests at once.

Reviewed October 20, 2026

Two numbers from your adopted budget

Annual assessment income (required)

Assessment income for the year, before any exclusions below. Not total expenses. Example: $400,000.

Permitted exclusions from assessment income (optional)

Include an amount only if it is already included in the assessment income above. If your income figure already leaves it out, do not subtract it again. Count each dollar once, even if categories overlap. A blank field counts as zero.

Incidental income the association does not rely on

Income the project does not depend on for operations, maintenance or capital improvements. Annual dollars already included above. Example: $5,000.

Utilities collected that an owner would normally pay directly

For example, cable or internet. Annual dollars already included above. Example: $5,000.

Income already allocated to reserve accounts

Annual dollars already included above. Example: $5,000.

Special assessment income

Annual dollars already included above. Example: $5,000.

Annual reserve contribution (required)

The reserves line in the same annual budget. Example: $48,000. Zero is allowed.

Units in the association (optional)

A positive whole number, such as 100. Shows an illustrative monthly equal share of any gap, not a proposed dues increase.

Your result

Enter both annual figures to see your result.

This is an allocation comparison, not a measure of reserve adequacy, loan approval or a complete eligibility determination.

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What your result means

Read how the tests work

The 10% and 15% tests are budget-line tests. The lender reads the reserve line of the adopted budget against assessment income; it does not read the reserve balance. This comparison alone does not establish reserve adequacy or complete loan eligibility.

An association below the budget threshold may be able to use a study-substitution route only when all applicable conditions are met and the lender accepts the record. A current, non-baseline study and funding its highest recommended allocation do not by themselves establish a pass. Review the complete conditions in the linked rule explanation before relying on that route.

The exclusions matter. Utility pass-through, special assessment income, income already going to reserves and incidental income the association does not rely on can be excluded only to the extent already included in the assessment income you enter. An amount left out of that figure must not be subtracted again.

Read the rule and the dates in full: When does the 15% condo reserve requirement start in 2027?

Reserve allocation is one of ten criteria. The Standing Check covers all ten in about three minutes, at no cost.

Sources

Fannie Mae LL-2026-03 (18 Mar 2026); Selling Guide B4-2.2-01 (08/05/2026); B4-2.1-03 (08/05/2026). Figures as of the rule data reviewed October 20, 2026.