Typical San Francisco home prices are out of reach for many households, but there’s a special city program that can open up options for low, moderate, and middle-income buyers.
The Below Market Rate (BMR) ownership program sells specific homes at below-market prices, offering a lesser-known path to ownership for many San Franciscans.
The catch is that you can’t just choose a home and buy. Homes are offered through specific application windows, and winners are picked by a lottery system. It’s all managed through the Mayor’s Office of Housing and Community Development (MOHCD).
Here’s a closer look at how that works.
The Below Market Rate (BMR) Ownership Program
The available homes come from San Francisco’s Inclusionary Housing Program, Limited Equity Program, and Condo Conversion. Interested buyers can browse the listings, which are mostly condominium units, and apply separately for each listing.
Eligibility is limited to first-time homebuyers who have completed homebuyer education from an approved agency, and who use the home as their primary residence.
Among other requirements, buyers’ total household income must not exceed the unit’s Area Median Income, and MOHCD requires a minimum of one person per bedroom, meaning you cannot buy a home with more bedrooms than people living there. Homeowners Associations (HOAs) also charge monthly dues on the buildings.
The homes remain part of the program if re-sold, too. Homeowners must continue to work with MOHCD in order to keep the home at a below-market rate for the next buyer. MOHCD is involved in title changes, refinancing, and estate planning.
Even though the BMR program isn’t widely known among many San Franciscans, it’s been around since 1992, and as of 2019, it included more than 1,900 ownership units.
Did you know about this option for first-time homebuyers in the city? You can learn more and see the full list of eligibility requirements at SF.gov.