It is believed that hippocampus functions as a memory allocator in brain, the mechanism of which remains unrevealed. In Valiant's neuroidal model, the hippocampus was described as a randomly connected graph, the computation on which maps input to a set of activated neuroids with stable size. Valiant proposed three requirements for the hippocampal circuit to become a stable memory allocator (SMA): stability, continuity and orthogonality. The functionality of SMA in hippocampus is essential in further computation within cortex, according to Valiant's model. In this paper, we put these requirements for memorization functions into rigorous mathematical formulation and introduce the concept of capacity, based on the probability of erroneous allocation. We prove fundamental limits for the capacity and error probability of SMA, in both data-independent and data-dependent settings. We also establish an example of stable memory allocator that can be implemented via neuroidal circuits. Both theoretical bounds and simulation results show that the neural SMA functions well.