diff --git a/pkg/features/kube_features.go b/pkg/features/kube_features.go
index 28fba47802a..374043b782b 100644
--- a/pkg/features/kube_features.go
+++ b/pkg/features/kube_features.go
@@ -841,6 +841,12 @@ const (
 	//
 	// Enable MinDomains in Pod Topology Spread.
 	MinDomainsInPodTopologySpread featuregate.Feature = "MinDomainsInPodTopologySpread"
+	// owner: @aojea
+	// kep: http://kep.k8s.io/3070
+	// alpha: v1.24
+	//
+	// Subdivide the ClusterIP range for dynamic and static IP allocation.
+	ServiceIPStaticSubrange featuregate.Feature = "ServiceIPStaticSubrange"
 )
 
 func init() {
@@ -963,6 +969,7 @@ var defaultKubernetesFeatureGates = map[featuregate.Feature]featuregate.FeatureS
 	GRPCContainerProbe:                             {Default: true, PreRelease: featuregate.Beta},
 	LegacyServiceAccountTokenNoAutoGeneration:      {Default: true, PreRelease: featuregate.Beta},
 	MinDomainsInPodTopologySpread:                  {Default: false, PreRelease: featuregate.Alpha},
+	ServiceIPStaticSubrange:                        {Default: false, PreRelease: featuregate.Alpha},
 
 	// inherited features from generic apiserver, relisted here to get a conflict if it is changed
 	// unintentionally on either side:
diff --git a/pkg/registry/core/rest/storage_core.go b/pkg/registry/core/rest/storage_core.go
index 8feae659016..53cb48234cc 100644
--- a/pkg/registry/core/rest/storage_core.go
+++ b/pkg/registry/core/rest/storage_core.go
@@ -199,8 +199,9 @@ func (c LegacyRESTStorageProvider) NewLegacyRESTStorage(apiResourceConfigSource
 		return LegacyRESTStorage{}, genericapiserver.APIGroupInfo{}, err
 	}
 
-	serviceClusterIPAllocator, err := ipallocator.New(&serviceClusterIPRange, func(max int, rangeSpec string) (allocator.Interface, error) {
-		mem := allocator.NewAllocationMap(max, rangeSpec)
+	serviceClusterIPAllocator, err := ipallocator.New(&serviceClusterIPRange, func(max int, rangeSpec string, offset int) (allocator.Interface, error) {
+		var mem allocator.Snapshottable
+		mem = allocator.NewAllocationMapWithOffset(max, rangeSpec, offset)
 		// TODO etcdallocator package to return a storage interface via the storageFactory
 		etcd, err := serviceallocator.NewEtcd(mem, "/ranges/serviceips", serviceStorageConfig.ForResource(api.Resource("serviceipallocations")))
 		if err != nil {
@@ -218,8 +219,9 @@ func (c LegacyRESTStorageProvider) NewLegacyRESTStorage(apiResourceConfigSource
 	var secondaryServiceClusterIPAllocator ipallocator.Interface
 	if c.SecondaryServiceIPRange.IP != nil {
 		var secondaryServiceClusterIPRegistry rangeallocation.RangeRegistry
-		secondaryServiceClusterIPAllocator, err = ipallocator.New(&c.SecondaryServiceIPRange, func(max int, rangeSpec string) (allocator.Interface, error) {
-			mem := allocator.NewAllocationMap(max, rangeSpec)
+		secondaryServiceClusterIPAllocator, err = ipallocator.New(&c.SecondaryServiceIPRange, func(max int, rangeSpec string, offset int) (allocator.Interface, error) {
+			var mem allocator.Snapshottable
+			mem = allocator.NewAllocationMapWithOffset(max, rangeSpec, offset)
 			// TODO etcdallocator package to return a storage interface via the storageFactory
 			etcd, err := serviceallocator.NewEtcd(mem, "/ranges/secondaryserviceips", serviceStorageConfig.ForResource(api.Resource("serviceipallocations")))
 			if err != nil {
diff --git a/pkg/registry/core/service/allocator/bitmap.go b/pkg/registry/core/service/allocator/bitmap.go
index c5dad0467f0..3c12864c114 100644
--- a/pkg/registry/core/service/allocator/bitmap.go
+++ b/pkg/registry/core/service/allocator/bitmap.go
@@ -18,6 +18,7 @@ package allocator
 
 import (
 	"errors"
+	"fmt"
 	"math/big"
 	"math/rand"
 	"sync"
@@ -60,15 +61,25 @@ type bitAllocator interface {
 
 // NewAllocationMap creates an allocation bitmap using the random scan strategy.
 func NewAllocationMap(max int, rangeSpec string) *AllocationBitmap {
+	return NewAllocationMapWithOffset(max, rangeSpec, 0)
+}
+
+// NewAllocationMapWithOffset creates an allocation bitmap using a random scan strategy that
+// allows to pass an offset that divides the allocation bitmap in two blocks.
+// The first block of values will not be used for random value assigned by the AllocateNext()
+// method until the second block of values has been exhausted.
+func NewAllocationMapWithOffset(max int, rangeSpec string, offset int) *AllocationBitmap {
 	a := AllocationBitmap{
-		strategy: randomScanStrategy{
-			rand: rand.New(rand.NewSource(time.Now().UnixNano())),
+		strategy: randomScanStrategyWithOffset{
+			rand:   rand.New(rand.NewSource(time.Now().UnixNano())),
+			offset: offset,
 		},
 		allocated: big.NewInt(0),
 		count:     0,
 		max:       max,
 		rangeSpec: rangeSpec,
 	}
+
 	return &a
 }
 
@@ -78,6 +89,10 @@ func (r *AllocationBitmap) Allocate(offset int) (bool, error) {
 	r.lock.Lock()
 	defer r.lock.Unlock()
 
+	// max is the maximum size of the usable items in the range
+	if offset < 0 || offset >= r.max {
+		return false, fmt.Errorf("offset %d out of range [0,%d]", offset, r.max)
+	}
 	if r.allocated.Bit(offset) == 1 {
 		return false, nil
 	}
@@ -205,3 +220,40 @@ func (rss randomScanStrategy) AllocateBit(allocated *big.Int, max, count int) (i
 }
 
 var _ bitAllocator = randomScanStrategy{}
+
+// randomScanStrategyWithOffset choose a random address from the provided big.Int and then scans
+// forward looking for the next available address. The big.Int range is subdivided so it will try
+// to allocate first from the reserved upper range of addresses (it will wrap the upper subrange if necessary).
+// If there is no free address it will try to allocate one from the lower range too.
+type randomScanStrategyWithOffset struct {
+	rand   *rand.Rand
+	offset int
+}
+
+func (rss randomScanStrategyWithOffset) AllocateBit(allocated *big.Int, max, count int) (int, bool) {
+	if count >= max {
+		return 0, false
+	}
+	// size of the upper subrange, prioritized for random allocation
+	subrangeMax := max - rss.offset
+	// try to get a value from the upper range [rss.reserved, max]
+	start := rss.rand.Intn(subrangeMax)
+	for i := 0; i < subrangeMax; i++ {
+		at := rss.offset + ((start + i) % subrangeMax)
+		if allocated.Bit(at) == 0 {
+			return at, true
+		}
+	}
+
+	start = rss.rand.Intn(rss.offset)
+	// subrange full, try to get the value from the first block before giving up.
+	for i := 0; i < rss.offset; i++ {
+		at := (start + i) % rss.offset
+		if allocated.Bit(at) == 0 {
+			return i, true
+		}
+	}
+	return 0, false
+}
+
+var _ bitAllocator = randomScanStrategyWithOffset{}
diff --git a/pkg/registry/core/service/allocator/bitmap_test.go b/pkg/registry/core/service/allocator/bitmap_test.go
index b5eacc114e5..f9af6a1aebc 100644
--- a/pkg/registry/core/service/allocator/bitmap_test.go
+++ b/pkg/registry/core/service/allocator/bitmap_test.go
@@ -23,116 +23,521 @@ import (
 )
 
 func TestAllocate(t *testing.T) {
-	max := 10
-	m := NewAllocationMap(max, "test")
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
 
-	if _, ok, _ := m.AllocateNext(); !ok {
-		t.Fatalf("unexpected error")
-	}
-	if m.count != 1 {
-		t.Errorf("expect to get %d, but got %d", 1, m.count)
-	}
-	if f := m.Free(); f != max-1 {
-		t.Errorf("expect to get %d, but got %d", max-1, f)
+			if _, ok, _ := m.AllocateNext(); !ok {
+				t.Fatalf("unexpected error")
+			}
+			if m.count != 1 {
+				t.Errorf("expect to get %d, but got %d", 1, m.count)
+			}
+			if f := m.Free(); f != tc.max-1 {
+				t.Errorf("expect to get %d, but got %d", tc.max-1, f)
+			}
+		})
 	}
 }
 
 func TestAllocateMax(t *testing.T) {
-	max := 10
-	m := NewAllocationMap(max, "test")
-	for i := 0; i < max; i++ {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
+			for i := 0; i < tc.max; i++ {
+				if ok, err := m.Allocate(i); !ok || err != nil {
+					t.Fatalf("unexpected error")
+				}
+			}
+			if _, ok, _ := m.AllocateNext(); ok {
+				t.Errorf("unexpected success")
+			}
+
+			if ok, err := m.Allocate(tc.max); ok || err == nil {
+				t.Fatalf("unexpected allocation")
+			}
+
+			if f := m.Free(); f != 0 {
+				t.Errorf("expect to get %d, but got %d", 0, f)
+			}
+		})
+	}
+}
+
+func TestAllocateNextMax(t *testing.T) {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
+			for i := 0; i < tc.max; i++ {
+				if _, ok, _ := m.AllocateNext(); !ok {
+					t.Fatalf("unexpected error")
+				}
+			}
+			if _, ok, _ := m.AllocateNext(); ok {
+				t.Errorf("unexpected success")
+			}
+			if f := m.Free(); f != 0 {
+				t.Errorf("expect to get %d, but got %d", 0, f)
+			}
+		})
+	}
+}
+func TestAllocateError(t *testing.T) {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
+			if ok, _ := m.Allocate(3); !ok {
+				t.Errorf("error allocate offset %v", 3)
+			}
+			if ok, _ := m.Allocate(3); ok {
+				t.Errorf("unexpected success")
+			}
+		})
+	}
+}
+
+func TestRelease(t *testing.T) {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
+			offset := 3
+			if ok, _ := m.Allocate(offset); !ok {
+				t.Errorf("error allocate offset %v", offset)
+			}
+
+			if !m.Has(offset) {
+				t.Errorf("expect offset %v allocated", offset)
+			}
+
+			if err := m.Release(offset); err != nil {
+				t.Errorf("unexpected error: %v", err)
+			}
+
+			if m.Has(offset) {
+				t.Errorf("expect offset %v not allocated", offset)
+			}
+		})
+	}
+
+}
+
+func TestForEach(t *testing.T) {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			subTests := []sets.Int{
+				sets.NewInt(),
+				sets.NewInt(0),
+				sets.NewInt(0, 2, 5),
+				sets.NewInt(0, 1, 2, 3, 4, 5, 6, 7),
+			}
+
+			for i, ts := range subTests {
+				m := tc.allocator(tc.max, "test", tc.reserved)
+				for offset := range ts {
+					if ok, _ := m.Allocate(offset); !ok {
+						t.Errorf("[%d] error allocate offset %v", i, offset)
+					}
+					if !m.Has(offset) {
+						t.Errorf("[%d] expect offset %v allocated", i, offset)
+					}
+				}
+				calls := sets.NewInt()
+				m.ForEach(func(i int) {
+					calls.Insert(i)
+				})
+				if len(calls) != len(ts) {
+					t.Errorf("[%d] expected %d calls, got %d", i, len(ts), len(calls))
+				}
+				if !calls.Equal(ts) {
+					t.Errorf("[%d] expected calls to equal testcase: %v vs %v", i, calls.List(), ts.List())
+				}
+			}
+		})
+	}
+}
+
+func TestSnapshotAndRestore(t *testing.T) {
+	testCases := []struct {
+		name      string
+		allocator func(max int, rangeSpec string, reserved int) *AllocationBitmap
+		max       int
+		reserved  int
+	}{
+		{
+			name:      "NewAllocationMap",
+			allocator: NewAllocationMapWithOffset,
+			max:       32,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max < 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       8,
+			reserved:  0,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 16",
+			allocator: NewAllocationMapWithOffset,
+			max:       128,
+			reserved:  16,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max > 256",
+			allocator: NewAllocationMapWithOffset,
+			max:       1024,
+			reserved:  64,
+		},
+		{
+			name:      "NewAllocationMapWithOffset max value",
+			allocator: NewAllocationMapWithOffset,
+			max:       65535,
+			reserved:  256,
+		},
+	}
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			m := tc.allocator(tc.max, "test", tc.reserved)
+			offset := 3
+			if ok, _ := m.Allocate(offset); !ok {
+				t.Errorf("error allocate offset %v", offset)
+			}
+			spec, bytes := m.Snapshot()
+
+			m2 := tc.allocator(10, "test", tc.reserved)
+			err := m2.Restore(spec, bytes)
+			if err != nil {
+				t.Errorf("unexpected error: %v", err)
+			}
+
+			if m2.count != 1 {
+				t.Errorf("expect count to %d, but got %d", 0, m.count)
+			}
+			if !m2.Has(offset) {
+				t.Errorf("expect offset %v allocated", offset)
+			}
+		})
+	}
+
+}
+
+// TestAllocateMaxReserved should allocate first values greater or equal than the reserved values
+func TestAllocateMax_BitmapReserved(t *testing.T) {
+	max := 128
+	dynamicOffset := 16
+
+	// just to double check off by one errors
+	allocated := 0
+	// modify if necessary
+	m := NewAllocationMapWithOffset(max, "test", dynamicOffset)
+	for i := 0; i < max-dynamicOffset; i++ {
 		if _, ok, _ := m.AllocateNext(); !ok {
 			t.Fatalf("unexpected error")
 		}
+		allocated++
+	}
+
+	if f := m.Free(); f != dynamicOffset {
+		t.Errorf("expect to get %d, but got %d", dynamicOffset-1, f)
+	}
+
+	for i := 0; i < dynamicOffset; i++ {
+		if m.Has(i) {
+			t.Errorf("unexpected allocated value %d", i)
+		}
+	}
+	// it should allocate one value of the reserved block
+	if _, ok, _ := m.AllocateNext(); !ok {
+		t.Fatalf("unexpected error")
+	}
+	allocated++
+	if allocated != m.count {
+		t.Errorf("expect to get %d, but got %d", allocated, m.count)
+	}
+
+	if m.count != max-dynamicOffset+1 {
+		t.Errorf("expect to get %d, but got %d", max-dynamicOffset+1, m.count)
+	}
+	if f := m.Free(); f != max-allocated {
+		t.Errorf("expect to get %d, but got %d", max-allocated, f)
+	}
+}
+
+func TestPreAllocateReservedFull_BitmapReserved(t *testing.T) {
+	max := 128
+	dynamicOffset := 16
+	// just to double check off by one errors
+	allocated := 0
+	m := NewAllocationMapWithOffset(max, "test", dynamicOffset)
+	// Allocate all possible values except the reserved
+	for i := dynamicOffset; i < max; i++ {
+		if ok, _ := m.Allocate(i); !ok {
+			t.Errorf("error allocate i %v", i)
+		} else {
+			allocated++
+		}
+	}
+	// Allocate all the values of the reserved block except one
+	for i := 0; i < dynamicOffset-1; i++ {
+		if ok, _ := m.Allocate(i); !ok {
+			t.Errorf("error allocate i %v", i)
+		} else {
+			allocated++
+		}
+	}
+
+	// there should be only one free value
+	if f := m.Free(); f != 1 {
+		t.Errorf("expect to get %d, but got %d", 1, f)
+	}
+	// check if the last free value is in the lower band
+	count := 0
+	for i := 0; i < dynamicOffset; i++ {
+		if !m.Has(i) {
+			count++
+		}
+	}
+	if count != 1 {
+		t.Errorf("expected one remaining free value, got %d", count)
+	}
+
+	if _, ok, _ := m.AllocateNext(); !ok {
+		t.Errorf("unexpected allocation error")
+	} else {
+		allocated++
+	}
+	if f := m.Free(); f != 0 {
+		t.Errorf("expect to get %d, but got %d", max-1, f)
 	}
 
 	if _, ok, _ := m.AllocateNext(); ok {
 		t.Errorf("unexpected success")
 	}
+	if m.count != allocated {
+		t.Errorf("expect to get %d, but got %d", max, m.count)
+	}
 	if f := m.Free(); f != 0 {
-		t.Errorf("expect to get %d, but got %d", 0, f)
-	}
-}
-
-func TestAllocateError(t *testing.T) {
-	m := NewAllocationMap(10, "test")
-	if ok, _ := m.Allocate(3); !ok {
-		t.Errorf("error allocate offset %v", 3)
-	}
-	if ok, _ := m.Allocate(3); ok {
-		t.Errorf("unexpected success")
-	}
-}
-
-func TestRelease(t *testing.T) {
-	offset := 3
-	m := NewAllocationMap(10, "test")
-	if ok, _ := m.Allocate(offset); !ok {
-		t.Errorf("error allocate offset %v", offset)
-	}
-
-	if !m.Has(offset) {
-		t.Errorf("expect offset %v allocated", offset)
-	}
-
-	if err := m.Release(offset); err != nil {
-		t.Errorf("unexpected error: %v", err)
-	}
-
-	if m.Has(offset) {
-		t.Errorf("expect offset %v not allocated", offset)
-	}
-}
-
-func TestForEach(t *testing.T) {
-	testCases := []sets.Int{
-		sets.NewInt(),
-		sets.NewInt(0),
-		sets.NewInt(0, 2, 5, 9),
-		sets.NewInt(0, 1, 2, 3, 4, 5, 6, 7, 8, 9),
-	}
-
-	for i, tc := range testCases {
-		m := NewAllocationMap(10, "test")
-		for offset := range tc {
-			if ok, _ := m.Allocate(offset); !ok {
-				t.Errorf("[%d] error allocate offset %v", i, offset)
-			}
-			if !m.Has(offset) {
-				t.Errorf("[%d] expect offset %v allocated", i, offset)
-			}
-		}
-		calls := sets.NewInt()
-		m.ForEach(func(i int) {
-			calls.Insert(i)
-		})
-		if len(calls) != len(tc) {
-			t.Errorf("[%d] expected %d calls, got %d", i, len(tc), len(calls))
-		}
-		if !calls.Equal(tc) {
-			t.Errorf("[%d] expected calls to equal testcase: %v vs %v", i, calls.List(), tc.List())
-		}
-	}
-}
-
-func TestSnapshotAndRestore(t *testing.T) {
-	offset := 3
-	m := NewAllocationMap(10, "test")
-	if ok, _ := m.Allocate(offset); !ok {
-		t.Errorf("error allocate offset %v", offset)
-	}
-	spec, bytes := m.Snapshot()
-
-	m2 := NewAllocationMap(10, "test")
-	err := m2.Restore(spec, bytes)
-	if err != nil {
-		t.Errorf("unexpected error: %v", err)
-	}
-
-	if m2.count != 1 {
-		t.Errorf("expect count to %d, but got %d", 0, m.count)
-	}
-	if !m2.Has(offset) {
-		t.Errorf("expect offset %v allocated", offset)
+		t.Errorf("expect to get %d, but got %d", max-1, f)
 	}
 }
diff --git a/pkg/registry/core/service/allocator/interfaces.go b/pkg/registry/core/service/allocator/interfaces.go
index 8f1b2f179bc..bd7ebc77b81 100644
--- a/pkg/registry/core/service/allocator/interfaces.go
+++ b/pkg/registry/core/service/allocator/interfaces.go
@@ -40,3 +40,5 @@ type Snapshottable interface {
 }
 
 type AllocatorFactory func(max int, rangeSpec string) (Interface, error)
+
+type AllocatorWithOffsetFactory func(max int, rangeSpec string, offset int) (Interface, error)
diff --git a/pkg/registry/core/service/ipallocator/allocator.go b/pkg/registry/core/service/ipallocator/allocator.go
index 820ae4a73e7..b8d8560dc79 100644
--- a/pkg/registry/core/service/ipallocator/allocator.go
+++ b/pkg/registry/core/service/ipallocator/allocator.go
@@ -22,7 +22,9 @@ import (
 	"math/big"
 	"net"
 
+	utilfeature "k8s.io/apiserver/pkg/util/feature"
 	api "k8s.io/kubernetes/pkg/apis/core"
+	"k8s.io/kubernetes/pkg/features"
 	"k8s.io/kubernetes/pkg/registry/core/service/allocator"
 	netutils "k8s.io/utils/net"
 )
@@ -86,7 +88,7 @@ type Range struct {
 }
 
 // New creates a Range over a net.IPNet, calling allocatorFactory to construct the backing store.
-func New(cidr *net.IPNet, allocatorFactory allocator.AllocatorFactory) (*Range, error) {
+func New(cidr *net.IPNet, allocatorFactory allocator.AllocatorWithOffsetFactory) (*Range, error) {
 	registerMetrics()
 
 	max := netutils.RangeSize(cidr)
@@ -118,16 +120,24 @@ func New(cidr *net.IPNet, allocatorFactory allocator.AllocatorFactory) (*Range,
 		max:    maximum(0, int(max)),
 		family: family,
 	}
-	var err error
-	r.alloc, err = allocatorFactory(r.max, rangeSpec)
 
-	return &r, err
+	offset := 0
+	if utilfeature.DefaultFeatureGate.Enabled(features.ServiceIPStaticSubrange) {
+		offset = calculateRangeOffset(cidr)
+	}
+
+	var err error
+	r.alloc, err = allocatorFactory(r.max, rangeSpec, offset)
+	if err != nil {
+		return nil, err
+	}
+	return &r, nil
 }
 
 // NewInMemory creates an in-memory allocator.
 func NewInMemory(cidr *net.IPNet) (*Range, error) {
-	return New(cidr, func(max int, rangeSpec string) (allocator.Interface, error) {
-		return allocator.NewAllocationMap(max, rangeSpec), nil
+	return New(cidr, func(max int, rangeSpec string, offset int) (allocator.Interface, error) {
+		return allocator.NewAllocationMapWithOffset(max, rangeSpec, offset), nil
 	})
 }
 
@@ -191,7 +201,7 @@ func (r *Range) allocate(ip net.IP, dryRun bool) error {
 	ok, offset := r.contains(ip)
 	if !ok {
 		// update metrics
-		clusterIPAllocationErrors.WithLabelValues(label.String()).Inc()
+		clusterIPAllocationErrors.WithLabelValues(label.String(), "static").Inc()
 		return &ErrNotInRange{ip, r.net.String()}
 	}
 	if dryRun {
@@ -203,18 +213,18 @@ func (r *Range) allocate(ip net.IP, dryRun bool) error {
 	allocated, err := r.alloc.Allocate(offset)
 	if err != nil {
 		// update metrics
-		clusterIPAllocationErrors.WithLabelValues(label.String()).Inc()
+		clusterIPAllocationErrors.WithLabelValues(label.String(), "static").Inc()
 
 		return err
 	}
 	if !allocated {
 		// update metrics
-		clusterIPAllocationErrors.WithLabelValues(label.String()).Inc()
+		clusterIPAllocationErrors.WithLabelValues(label.String(), "static").Inc()
 
 		return ErrAllocated
 	}
 	// update metrics
-	clusterIPAllocations.WithLabelValues(label.String()).Inc()
+	clusterIPAllocations.WithLabelValues(label.String(), "static").Inc()
 	clusterIPAllocated.WithLabelValues(label.String()).Set(float64(r.Used()))
 	clusterIPAvailable.WithLabelValues(label.String()).Set(float64(r.Free()))
 
@@ -238,18 +248,18 @@ func (r *Range) allocateNext(dryRun bool) (net.IP, error) {
 	offset, ok, err := r.alloc.AllocateNext()
 	if err != nil {
 		// update metrics
-		clusterIPAllocationErrors.WithLabelValues(label.String()).Inc()
+		clusterIPAllocationErrors.WithLabelValues(label.String(), "dynamic").Inc()
 
 		return nil, err
 	}
 	if !ok {
 		// update metrics
-		clusterIPAllocationErrors.WithLabelValues(label.String()).Inc()
+		clusterIPAllocationErrors.WithLabelValues(label.String(), "dynamic").Inc()
 
 		return nil, ErrFull
 	}
 	// update metrics
-	clusterIPAllocations.WithLabelValues(label.String()).Inc()
+	clusterIPAllocations.WithLabelValues(label.String(), "dynamic").Inc()
 	clusterIPAllocated.WithLabelValues(label.String()).Set(float64(r.Used()))
 	clusterIPAvailable.WithLabelValues(label.String()).Set(float64(r.Free()))
 
@@ -354,6 +364,33 @@ func calculateIPOffset(base *big.Int, ip net.IP) int {
 	return int(big.NewInt(0).Sub(netutils.BigForIP(ip), base).Int64())
 }
 
+// calculateRangeOffset estimates the offset used on the range for statically allocation based on
+// the following formula `min(max($min, cidrSize/$step), $max)`, described as ~never less than
+// $min or more than $max, with a graduated step function between them~. The function returns 0
+// if any of the parameters is invalid.
+func calculateRangeOffset(cidr *net.IPNet) int {
+	// default values for min(max($min, cidrSize/$step), $max)
+	const (
+		min  = 16
+		max  = 256
+		step = 16
+	)
+
+	cidrSize := netutils.RangeSize(cidr)
+	if cidrSize < min {
+		return 0
+	}
+
+	offset := cidrSize / step
+	if offset < min {
+		return min
+	}
+	if offset > max {
+		return max
+	}
+	return int(offset)
+}
+
 // dryRunRange is a shim to satisfy Interface without persisting state.
 type dryRunRange struct {
 	real *Range
diff --git a/pkg/registry/core/service/ipallocator/allocator_test.go b/pkg/registry/core/service/ipallocator/allocator_test.go
index bf4dec2fa83..0853c853580 100644
--- a/pkg/registry/core/service/ipallocator/allocator_test.go
+++ b/pkg/registry/core/service/ipallocator/allocator_test.go
@@ -17,12 +17,16 @@ limitations under the License.
 package ipallocator
 
 import (
+	"fmt"
 	"net"
 	"testing"
 
 	"k8s.io/apimachinery/pkg/util/sets"
+	utilfeature "k8s.io/apiserver/pkg/util/feature"
+	featuregatetesting "k8s.io/component-base/featuregate/testing"
 	"k8s.io/component-base/metrics/testutil"
 	api "k8s.io/kubernetes/pkg/apis/core"
+	"k8s.io/kubernetes/pkg/features"
 	netutils "k8s.io/utils/net"
 )
 
@@ -176,6 +180,57 @@ func TestAllocateTiny(t *testing.T) {
 	}
 }
 
+func TestAllocateReserved(t *testing.T) {
+	defer featuregatetesting.SetFeatureGateDuringTest(t, utilfeature.DefaultFeatureGate, features.ServiceIPStaticSubrange, true)()
+
+	_, cidr, err := netutils.ParseCIDRSloppy("192.168.1.0/25")
+	if err != nil {
+		t.Fatal(err)
+	}
+	r, err := NewInMemory(cidr)
+	if err != nil {
+		t.Fatal(err)
+	}
+	// allocate all addresses on the dynamic block
+	// subnet /25 = 128 ; dynamic block size is min(max(16,128/16),256) = 16
+	dynamicOffset := calculateRangeOffset(cidr)
+	dynamicBlockSize := r.max - dynamicOffset
+	for i := 0; i < dynamicBlockSize; i++ {
+		if _, err := r.AllocateNext(); err != nil {
+			t.Errorf("Unexpected error trying to allocate: %v", err)
+		}
+	}
+	for i := dynamicOffset; i < r.max; i++ {
+		ip := fmt.Sprintf("192.168.1.%d", i+1)
+		if !r.Has(netutils.ParseIPSloppy(ip)) {
+			t.Errorf("IP %s expected to be allocated", ip)
+		}
+	}
+	if f := r.Free(); f != dynamicOffset {
+		t.Errorf("expected %d free addresses, got %d", dynamicOffset, f)
+	}
+	// allocate all addresses on the static block
+	for i := 0; i < dynamicOffset; i++ {
+		ip := fmt.Sprintf("192.168.1.%d", i+1)
+		if err := r.Allocate(netutils.ParseIPSloppy(ip)); err != nil {
+			t.Errorf("Unexpected error trying to allocate IP %s: %v", ip, err)
+		}
+	}
+	if f := r.Free(); f != 0 {
+		t.Errorf("expected free equal to 0 got: %d", f)
+	}
+	// release one address in the allocated block and another a new one randomly
+	if err := r.Release(netutils.ParseIPSloppy("192.168.1.10")); err != nil {
+		t.Fatalf("Unexpected error trying to release ip 192.168.1.10: %v", err)
+	}
+	if _, err := r.AllocateNext(); err != nil {
+		t.Error(err)
+	}
+	if f := r.Free(); f != 0 {
+		t.Errorf("expected free equal to 0 got: %d", f)
+	}
+}
+
 func TestAllocateSmall(t *testing.T) {
 	_, cidr, err := netutils.ParseCIDRSloppy("192.168.1.240/30")
 	if err != nil {
@@ -186,7 +241,7 @@ func TestAllocateSmall(t *testing.T) {
 		t.Fatal(err)
 	}
 	if f := r.Free(); f != 2 {
-		t.Errorf("free: %d", f)
+		t.Errorf("expected free equal to 2 got: %d", f)
 	}
 	found := sets.NewString()
 	for i := 0; i < 2; i++ {
@@ -195,7 +250,7 @@ func TestAllocateSmall(t *testing.T) {
 			t.Fatal(err)
 		}
 		if found.Has(ip.String()) {
-			t.Fatalf("already reserved: %s", ip)
+			t.Fatalf("address %s has been already allocated", ip)
 		}
 		found.Insert(ip.String())
 	}
@@ -213,8 +268,12 @@ func TestAllocateSmall(t *testing.T) {
 		}
 	}
 
-	if r.Free() != 0 && r.max != 2 {
-		t.Fatalf("unexpected range: %v", r)
+	if f := r.Free(); f != 0 {
+		t.Errorf("expected free equal to 0 got: %d", f)
+	}
+
+	if r.max != 2 {
+		t.Fatalf("expected range equal to 2, got: %v", r)
 	}
 
 	t.Logf("allocated: %v", found)
@@ -365,6 +424,9 @@ func TestNewFromSnapshot(t *testing.T) {
 }
 
 func TestClusterIPMetrics(t *testing.T) {
+	clearMetrics()
+	defer featuregatetesting.SetFeatureGateDuringTest(t, utilfeature.DefaultFeatureGate, features.ServiceIPStaticSubrange, true)()
+
 	// create IPv4 allocator
 	cidrIPv4 := "10.0.0.0/24"
 	_, clusterCIDRv4, _ := netutils.ParseCIDRSloppy(cidrIPv4)
@@ -372,7 +434,6 @@ func TestClusterIPMetrics(t *testing.T) {
 	if err != nil {
 		t.Fatalf("unexpected error creating CidrSet: %v", err)
 	}
-	clearMetrics(map[string]string{"cidr": cidrIPv4})
 	// create IPv6 allocator
 	cidrIPv6 := "2001:db8::/112"
 	_, clusterCIDRv6, _ := netutils.ParseCIDRSloppy(cidrIPv6)
@@ -380,7 +441,6 @@ func TestClusterIPMetrics(t *testing.T) {
 	if err != nil {
 		t.Fatalf("unexpected error creating CidrSet: %v", err)
 	}
-	clearMetrics(map[string]string{"cidr": cidrIPv6})
 
 	// Check initial state
 	em := testMetrics{
@@ -475,12 +535,72 @@ func TestClusterIPMetrics(t *testing.T) {
 	expectMetrics(t, cidrIPv6, em)
 }
 
+func TestClusterIPAllocatedMetrics(t *testing.T) {
+	clearMetrics()
+	defer featuregatetesting.SetFeatureGateDuringTest(t, utilfeature.DefaultFeatureGate, features.ServiceIPStaticSubrange, true)()
+
+	// create IPv4 allocator
+	cidrIPv4 := "10.0.0.0/25"
+	_, clusterCIDRv4, _ := netutils.ParseCIDRSloppy(cidrIPv4)
+	a, err := NewInMemory(clusterCIDRv4)
+	if err != nil {
+		t.Fatalf("unexpected error creating CidrSet: %v", err)
+	}
+
+	em := testMetrics{
+		free:      0,
+		used:      0,
+		allocated: 0,
+		errors:    0,
+	}
+	expectMetrics(t, cidrIPv4, em)
+
+	// allocate 2 dynamic IPv4 addresses
+	found := sets.NewString()
+	for i := 0; i < 2; i++ {
+		ip, err := a.AllocateNext()
+		if err != nil {
+			t.Fatal(err)
+		}
+		if found.Has(ip.String()) {
+			t.Fatalf("already reserved: %s", ip)
+		}
+		found.Insert(ip.String())
+	}
+
+	dynamic_allocated, err := testutil.GetCounterMetricValue(clusterIPAllocations.WithLabelValues(cidrIPv4, "dynamic"))
+	if err != nil {
+		t.Errorf("failed to get %s value, err: %v", clusterIPAllocations.Name, err)
+	}
+	if dynamic_allocated != 2 {
+		t.Fatalf("Expected 2 received %f", dynamic_allocated)
+	}
+
+	// try to allocate the same IP addresses
+	for s := range found {
+		if !a.Has(netutils.ParseIPSloppy(s)) {
+			t.Fatalf("missing: %s", s)
+		}
+		if err := a.Allocate(netutils.ParseIPSloppy(s)); err != ErrAllocated {
+			t.Fatal(err)
+		}
+	}
+
+	static_errors, err := testutil.GetCounterMetricValue(clusterIPAllocationErrors.WithLabelValues(cidrIPv4, "static"))
+	if err != nil {
+		t.Errorf("failed to get %s value, err: %v", clusterIPAllocationErrors.Name, err)
+	}
+	if static_errors != 2 {
+		t.Fatalf("Expected 2 received %f", dynamic_allocated)
+	}
+}
+
 // Metrics helpers
-func clearMetrics(labels map[string]string) {
-	clusterIPAllocated.Delete(labels)
-	clusterIPAvailable.Delete(labels)
-	clusterIPAllocations.Delete(labels)
-	clusterIPAllocationErrors.Delete(labels)
+func clearMetrics() {
+	clusterIPAllocated.Reset()
+	clusterIPAvailable.Reset()
+	clusterIPAllocations.Reset()
+	clusterIPAllocationErrors.Reset()
 }
 
 type testMetrics struct {
@@ -501,14 +621,25 @@ func expectMetrics(t *testing.T, label string, em testMetrics) {
 	if err != nil {
 		t.Errorf("failed to get %s value, err: %v", clusterIPAllocated.Name, err)
 	}
-	m.allocated, err = testutil.GetCounterMetricValue(clusterIPAllocations.WithLabelValues(label))
+	static_allocated, err := testutil.GetCounterMetricValue(clusterIPAllocations.WithLabelValues(label, "static"))
 	if err != nil {
 		t.Errorf("failed to get %s value, err: %v", clusterIPAllocations.Name, err)
 	}
-	m.errors, err = testutil.GetCounterMetricValue(clusterIPAllocationErrors.WithLabelValues(label))
+	static_errors, err := testutil.GetCounterMetricValue(clusterIPAllocationErrors.WithLabelValues(label, "static"))
 	if err != nil {
 		t.Errorf("failed to get %s value, err: %v", clusterIPAllocationErrors.Name, err)
 	}
+	dynamic_allocated, err := testutil.GetCounterMetricValue(clusterIPAllocations.WithLabelValues(label, "dynamic"))
+	if err != nil {
+		t.Errorf("failed to get %s value, err: %v", clusterIPAllocations.Name, err)
+	}
+	dynamic_errors, err := testutil.GetCounterMetricValue(clusterIPAllocationErrors.WithLabelValues(label, "dynamic"))
+	if err != nil {
+		t.Errorf("failed to get %s value, err: %v", clusterIPAllocationErrors.Name, err)
+	}
+
+	m.allocated = static_allocated + dynamic_allocated
+	m.errors = static_errors + dynamic_errors
 
 	if m != em {
 		t.Fatalf("metrics error: expected %v, received %v", em, m)
@@ -578,3 +709,75 @@ func TestDryRun(t *testing.T) {
 		})
 	}
 }
+
+func Test_calculateRangeOffset(t *testing.T) {
+	// default $min = 16, $max = 256 and $step = 16.
+	tests := []struct {
+		name string
+		cidr string
+		want int
+	}{
+		{
+			name: "full mask IPv4",
+			cidr: "192.168.1.1/32",
+			want: 0,
+		},
+		{
+			name: "full mask IPv6",
+			cidr: "fd00::1/128",
+			want: 0,
+		},
+		{
+			name: "very small mask IPv4",
+			cidr: "192.168.1.1/30",
+			want: 0,
+		},
+		{
+			name: "very small mask IPv6",
+			cidr: "fd00::1/126",
+			want: 0,
+		},
+		{
+			name: "small mask IPv4",
+			cidr: "192.168.1.1/28",
+			want: 16,
+		},
+		{
+			name: "small mask IPv6",
+			cidr: "fd00::1/122",
+			want: 16,
+		},
+		{
+			name: "medium mask IPv4",
+			cidr: "192.168.1.1/22",
+			want: 64,
+		},
+		{
+			name: "medium mask IPv6",
+			cidr: "fd00::1/118",
+			want: 64,
+		},
+		{
+			name: "large mask IPv4",
+			cidr: "192.168.1.1/8",
+			want: 256,
+		},
+		{
+			name: "large mask IPv6",
+			cidr: "fd00::1/12",
+			want: 256,
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+
+			_, cidr, err := netutils.ParseCIDRSloppy(tt.cidr)
+			if err != nil {
+				t.Fatalf("Unexpected error parsing CIDR %s: %v", tt.cidr, err)
+			}
+			if got := calculateRangeOffset(cidr); got != tt.want {
+				t.Errorf("DynamicRangeOffset() = %v, want %v", got, tt.want)
+			}
+		})
+	}
+}
diff --git a/pkg/registry/core/service/ipallocator/metrics.go b/pkg/registry/core/service/ipallocator/metrics.go
index ffd62f32e3b..2aa1844b32a 100644
--- a/pkg/registry/core/service/ipallocator/metrics.go
+++ b/pkg/registry/core/service/ipallocator/metrics.go
@@ -51,7 +51,7 @@ var (
 		},
 		[]string{"cidr"},
 	)
-	// clusterIPAllocation counts the total number of ClusterIP allocation.
+	// clusterIPAllocation counts the total number of ClusterIP allocation and allocation mode: static or dynamic.
 	clusterIPAllocations = metrics.NewCounterVec(
 		&metrics.CounterOpts{
 			Namespace:      namespace,
@@ -60,9 +60,9 @@ var (
 			Help:           "Number of Cluster IPs allocations",
 			StabilityLevel: metrics.ALPHA,
 		},
-		[]string{"cidr"},
+		[]string{"cidr", "scope"},
 	)
-	// clusterIPAllocationErrors counts the number of error trying to allocate a ClusterIP.
+	// clusterIPAllocationErrors counts the number of error trying to allocate a ClusterIP and allocation mode: static or dynamic.
 	clusterIPAllocationErrors = metrics.NewCounterVec(
 		&metrics.CounterOpts{
 			Namespace:      namespace,
@@ -71,7 +71,7 @@ var (
 			Help:           "Number of errors trying to allocate Cluster IPs",
 			StabilityLevel: metrics.ALPHA,
 		},
-		[]string{"cidr"},
+		[]string{"cidr", "scope"},
 	)
 )
 
diff --git a/pkg/registry/core/service/ipallocator/storage/storage_test.go b/pkg/registry/core/service/ipallocator/storage/storage_test.go
index 3eed72ce198..706e7bc48b6 100644
--- a/pkg/registry/core/service/ipallocator/storage/storage_test.go
+++ b/pkg/registry/core/service/ipallocator/storage/storage_test.go
@@ -18,6 +18,7 @@ package storage
 
 import (
 	"context"
+	"fmt"
 	"strings"
 	"testing"
 
@@ -25,8 +26,11 @@ import (
 	"k8s.io/apiserver/pkg/storage"
 	etcd3testing "k8s.io/apiserver/pkg/storage/etcd3/testing"
 	"k8s.io/apiserver/pkg/storage/storagebackend/factory"
+	utilfeature "k8s.io/apiserver/pkg/util/feature"
+	featuregatetesting "k8s.io/component-base/featuregate/testing"
 	api "k8s.io/kubernetes/pkg/apis/core"
 	_ "k8s.io/kubernetes/pkg/apis/core/install"
+	"k8s.io/kubernetes/pkg/features"
 	"k8s.io/kubernetes/pkg/registry/core/service/allocator"
 	allocatorstore "k8s.io/kubernetes/pkg/registry/core/service/allocator/storage"
 	"k8s.io/kubernetes/pkg/registry/core/service/ipallocator"
@@ -43,8 +47,8 @@ func newStorage(t *testing.T) (*etcd3testing.EtcdTestServer, ipallocator.Interfa
 
 	var backing allocator.Interface
 	configForAllocations := etcdStorage.ForResource(api.Resource("serviceipallocations"))
-	storage, err := ipallocator.New(cidr, func(max int, rangeSpec string) (allocator.Interface, error) {
-		mem := allocator.NewAllocationMap(max, rangeSpec)
+	storage, err := ipallocator.New(cidr, func(max int, rangeSpec string, offset int) (allocator.Interface, error) {
+		mem := allocator.NewAllocationMapWithOffset(max, rangeSpec, offset)
 		backing = mem
 		etcd, err := allocatorstore.NewEtcd(mem, "/ranges/serviceips", configForAllocations)
 		if err != nil {
@@ -115,3 +119,51 @@ func TestStore(t *testing.T) {
 		t.Fatal(err)
 	}
 }
+
+func TestAllocateReserved(t *testing.T) {
+	defer featuregatetesting.SetFeatureGateDuringTest(t, utilfeature.DefaultFeatureGate, features.ServiceIPStaticSubrange, true)()
+
+	_, storage, _, si, destroyFunc := newStorage(t)
+	defer destroyFunc()
+	if err := si.Create(context.TODO(), key(), validNewRangeAllocation(), nil, 0); err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+
+	// allocate all addresses on the dynamic block
+	// subnet /24 = 256 ; dynamic block size is min(max(16,256/16),256) = 16
+	dynamicOffset := 16
+	max := 254
+	dynamicBlockSize := max - dynamicOffset
+	for i := 0; i < dynamicBlockSize; i++ {
+		if _, err := storage.AllocateNext(); err != nil {
+			t.Errorf("Unexpected error trying to allocate: %v", err)
+		}
+	}
+	for i := dynamicOffset; i < max; i++ {
+		ip := fmt.Sprintf("192.168.1.%d", i+1)
+		if !storage.Has(netutils.ParseIPSloppy(ip)) {
+			t.Errorf("IP %s expected to be allocated", ip)
+		}
+	}
+
+	// allocate all addresses on the static block
+	for i := 0; i < dynamicOffset; i++ {
+		ip := fmt.Sprintf("192.168.1.%d", i+1)
+		if err := storage.Allocate(netutils.ParseIPSloppy(ip)); err != nil {
+			t.Errorf("Unexpected error trying to allocate IP %s: %v", ip, err)
+		}
+	}
+	if _, err := storage.AllocateNext(); err == nil {
+		t.Error("Allocator expected to be full")
+	}
+	// release one address in the allocated block and another a new one randomly
+	if err := storage.Release(netutils.ParseIPSloppy("192.168.1.10")); err != nil {
+		t.Fatalf("Unexpected error trying to release ip 192.168.1.10: %v", err)
+	}
+	if _, err := storage.AllocateNext(); err != nil {
+		t.Error(err)
+	}
+	if _, err := storage.AllocateNext(); err == nil {
+		t.Error("Allocator expected to be full")
+	}
+}