Buy · New construction
Buying in a Florida CDD community: how to estimate your true monthly cost
Two homes. Same price, same size, same great kitchen. One is in a CDD community. Which one is really cheaper each month? Here’s how I run the math with my buyers. (New to CDDs? Start with what a CDD is.)
The simple formula
Find the yearly CDD assessment on the home’s county tax bill. Divide by 12. Add it to everything else you pay each month:
- Principal and interest
- Property taxes
- Homeowners insurance
- HOA dues
- CDD ÷ 12
That total is your true monthly cost.
A made-up example
Every number here is invented to show the math.
Two homes, both $400,000, 10% down, 30-year loan at 6.5%. Same taxes, insurance and HOA. The only difference: Home B has a CDD assessment of $2,400 a year.
| Monthly piece | Home A | Home B |
|---|---|---|
| Principal & interest | $2,275 | $2,275 |
| Property tax (made-up) | $500 | $500 |
| Insurance (made-up) | $250 | $250 |
| HOA (made-up) | $100 | $100 |
| CDD ($2,400 ÷ 12) | $0 | $200 |
| Total | $3,125 | $3,325 |
Another way to see it: at 6.5%, $200 a month is about the same payment as borrowing roughly $31,600 more. So when you compare a CDD community to one without, it’s fair to think of the CDD as part of the price.
That’s also why builder incentives deserve a close look in CDD communities. Here’s how to compare a rate buydown and closing cost help.
Things that change the math
- Bond payoff timing. Only a few years left? That part goes away soon. Brand new? It could run 20 to 30 years.
- Paying off the bond early. Some districts let you pay off your share in a lump sum. Compare that cost to what you’d save each year.
- Maintenance changes. The operations and maintenance part is set every year and can go up or down.
- Amenities you’d pay for anyway. If the CDD maintains amenities that would otherwise mean higher HOA dues, the gap may be smaller than it looks.
Your CDD checklist
- Pull the home’s current county tax bill and find the non-ad valorem CDD line
- Divide by 12 and add it to your monthly budget
- Ask for a CDD estoppel or payoff letter (bond balance, payoff amount, years left)
- Check the district’s budget for where maintenance costs are heading
- Ask your lender to include it in your payment estimate
- Compare against similar homes without a CDD, monthly cost to monthly cost
Don’t forget the HOA side either: what to look for in Florida HOA documents.
Want the real number for a home?
Send me the address and I’ll pull the CDD from the tax bill and lay out the full monthly cost next to the alternatives. I can also connect you with a lender I trust to price it out for real.
Frequently asked questions
Is the CDD included in my mortgage payment?
Often, yes. When the CDD is collected on the county tax bill and your lender escrows your property taxes, it comes along for the ride. Some districts bill owners directly instead, so ask the district how yours is collected.
I'm a real estate agent, not a lender or tax advisor.
Sources
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