San Francisco BMR Homes: Buying and Selling Below Market Rate Units
A San Francisco BMR (below market rate) home is a condo or house sold at a restricted price to an income-qualified first-time buyer under programs run by the Mayor’s Office of Housing and Community Development (MOHCD). Buyers apply separately for each listing, which MOHCD posts on the city’s DAHLIA housing portal for resales, and are chosen by lottery. Owners must live in the home, can’t rent it out, need MOHCD approval to refinance or change title, and resell at a price MOHCD sets to another qualified buyer, under restrictions that last for the life of the property.
Many BMR ownership units come from the city’s Inclusionary Affordable Housing Program, which ties affordable units to market-rate development; MOHCD also prices homes in other programs, such as its Limited Equity Program. This page covers the ownership side only: who can buy, how listings and lotteries work, what owners agree to, and how a resale runs. It describes program rules, not who should apply; MOHCD decides eligibility for every household.
Who can buy a BMR home
MOHCD’s BMR ownership page lists these core requirements:
- First-time buyer. No one in the household may have owned residential property in the last three years.
- Income. Total household income can’t exceed the Area Median Income (AMI) level posted for the unit. MOHCD generally uses the greater of projected 12-month income or the last tax year’s gross income.
- Assets. Savings and other liquid assets above an exclusion are counted at 10 percent and added to income. The first $80,000 is excluded, or the full down payment if it is 20 percent or more of the price.
- Education. Everyone on the loan and title must complete homebuyer education from a MOHCD-approved housing counseling agency.
- Financing. The loan must come from a MOHCD-approved lender.
The July 2024 program manual also says tenancy-in-common is not a permitted form of ownership for these units, so co-buyers take title in another form MOHCD allows.
2026 income limits
MOHCD’s 2026 income limits for its homeownership programs took effect June 1, 2026. Each BMR listing states its AMI level, and the household’s income must fall at or below that level for its size. A sample of the 2026 limits:
| AMI level | 1 person | 2 people | 3 people | 4 people |
|---|---|---|---|---|
| 80% | $90,750 | $103,750 | $116,700 | $129,700 |
| 100% | $113,450 | $129,700 | $145,900 | $162,100 |
| 120% | $136,150 | $155,650 | $175,100 | $194,500 |
| 200% | $226,900 | $259,400 | $291,800 | $324,200 |
MOHCD calls these figures a sampling and publishes the full chart and sample purchase price limits as separate PDFs. Limits are updated each year, so check the current chart and the listing itself before you apply.
How BMR listings and the lottery work
MOHCD posts BMR resale listings on DAHLIA, San Francisco’s housing portal. You apply separately for each listing, and applicants are ranked by lottery. On a resale, MOHCD’s process calls for the listing to stay posted at least 21 days, for at least three open houses of two hours or more on separate days, and for an electronic public lottery held at least seven days after the application deadline, with results posted within a week.
San Francisco’s lottery preference programs give some applicants priority. MOHCD’s October 2026 presentation to the Veterans Affairs Council lists four, in order:
- Certificate of Preference, for households displaced by the former Redevelopment Agency.
- Displaced Tenant Housing Preference, for tenants displaced by Ellis Act or owner move-in evictions, fire, or certain unlawful units.
- Neighborhood Resident Housing Preference, for applicants in the same supervisorial district or within a half mile of the project.
- Live or Work in San Francisco.
The same presentation describes a veteran priority within each preference. Each listing states which preferences apply.
After the lottery
MOHCD collects supplemental applications from top-ranked applicants and issues a conditional approval or disapproval within 15 days. A disqualified applicant has five days to appeal with documents. The approved buyer signs a sales contract within seven calendar days of conditional approval, must obtain final loan approval, and receives a MOHCD commitment letter valid for 30 days before closing.
What you agree to as a BMR owner
At closing, the buyer signs a Declaration of Restrictions and Option to Purchase Agreement and related documents, which are recorded against the unit. According to MOHCD and the program manual:
- Owner occupancy. The home must be your primary residence, and renting any part of it isn’t allowed under MOHCD’s program summary.
- Refinancing. Any refinance must be approved by MOHCD and use a MOHCD-approved lender.
- Title changes. Adding or removing anyone on title needs MOHCD approval.
- City option. The recorded declaration gives the City an option to purchase the unit if the owner doesn’t comply with program terms.
- Post-purchase education. The 2024 manual expects at least six hours of workshops within 24 months of purchase, backed by a refundable deposit of no more than $200 held in escrow.
- Duration. MOHCD says all restrictions are in place for the life of the property, though program documents for some units contain exceptions.
The detailed rules, such as how many months a year you must live in the unit, when a temporary rental for job relocation or hardship might be approved, and how much a refinance can borrow, are in the manual and your recorded documents. The 2018 edition of the manual, for example, required everyone on title to live in the unit at least 10 of every 12 months and capped a refinance at the original loan amount and 95 percent combined loan-to-value. Those are 2018 terms, not necessarily today’s. Read the version that governs your unit, because terms differ by program and recording date, and confirm the current rule with MOHCD before you rely on it.
How a BMR resale works
An owner can’t set the price or pick the buyer. MOHCD’s resale steps:
- Request pricing. The sales agent sends MOHCD one PDF with a signed resale pricing request form, owner authorization, proof of HOA dues, the latest property tax statement and inspection and disclosure documents. MOHCD won’t price a unit unless the owner intends to sell.
- Receive the maximum price. MOHCD issues pricing in about 30 days, valid for six months. If the formula price is above what the next qualified buyer can afford, the letter shows both and the seller sets the final price with the agent.
- Make required repairs. MOHCD may require repairs before posting, under its inspection and repairs policy, and a unit in poor condition can be priced lower.
- List on DAHLIA. MOHCD approves the agent’s listing template in about a week and posts it. The listing must disclose MOHCD monitoring.
- Hold open houses and the lottery. As described above.
- Close with the approved buyer. The title company returns signed, notarized documents to MOHCD; the City reconveys the seller’s BMR deed of trust and the buyer signs new restriction documents.
MOHCD says a sale usually takes about four to six months in a typical market, so plan for overlapping housing costs if you’re buying your next home.
Price credits and commissions
Owners can ask MOHCD for credit for approved capital improvements, starting 10 years after the initial sale. Broker compensation is optional and must fit within the maximum resale price: MOHCD calculates it at up to 2.5 percent of the maximum baseline resale price for each broker, and the 2024 manual caps total commissions at 5 percent. Offering less lowers the maximum price; offering more doesn’t raise it.
When an owner dies
Heirs don’t simply inherit a market-rate condo. Under the 2018 edition of the manual, a child, spouse or domestic partner not on title could keep the unit only by qualifying for the program, applying within a year of the death; otherwise the unit had to be sold through the program and the heirs received the proceeds. Confirm with MOHCD whether that rule still applies to your unit. MOHCD’s resale page requires proof of legal authority when the owner has died or is incapacitated. If you’re handling an estate with a BMR unit, call MOHCD early; see also our guide to selling an inherited house.
BMR compared with a market-rate condo
| Question | BMR ownership unit | Market-rate condo |
|---|---|---|
| Who can buy | Income-qualified first-time buyers chosen by lottery | Any buyer |
| Price | Set by MOHCD formula | Set by the market |
| Renting | Not allowed under the program summary | Subject to HOA rules and city law |
| Refinancing | MOHCD approval and approved lender | Any lender |
| Resale | MOHCD pricing, DAHLIA posting and lottery | Open market listing |
Buyers comparing both should read our guide to San Francisco condos for HOA documents and building issues, which apply to BMR units too. Some of our neighborhood guides point out BMR units, for example in Van Ness and Civic Center, which counts them from Assessor parcel data, and Treasure Island.
Working with an agent on a BMR purchase or sale
MOHCD’s resale process runs through a sales agent who submits the pricing request, prepares the listing, holds the open houses and attends the lottery. On the buy side, an agent can help you read the HOA documents, the recorded restrictions and the disclosures, though MOHCD and its approved lenders control eligibility and approval.
Diamond Real Estate Group represents buyers and sellers across San Francisco. Before you list a BMR unit, confirm with MOHCD any requirements for the sales agent. For the city’s other seller rules, see San Francisco seller requirements; for first purchases more generally, see our first-time homebuyer guide. Diamond may refer you to partners we work with, such as lenders; for a BMR loan you’ll need a MOHCD-approved lender, and you’re free to choose any provider on that list.
Questions people ask
How do I apply for a BMR home in San Francisco?
Complete homebuyer education with a MOHCD-approved counseling agency, line up financing with a MOHCD-approved lender, then apply for individual listings, which for resales MOHCD posts on DAHLIA. Each listing has its own deadline and lottery.
What is the income limit for a San Francisco BMR home?
It depends on the unit’s AMI level and your household size. Under MOHCD’s 2026 limits, effective June 1, 2026, 100 percent of AMI is $113,450 for one person and $162,100 for four. Each listing states its level.
Can I rent out my BMR condo?
No. MOHCD’s program summary says the home must be owner-occupied as your primary residence and renting any part of it isn’t allowed. The 2018 edition of the program manual described narrow temporary exceptions that needed prior written approval; ask MOHCD what applies today.
Can I sell my BMR home for market value?
No. MOHCD sets a maximum resale price with its formula, and the next buyer is chosen by lottery from qualified applicants. The restrictions generally last for the life of the property.
Can I refinance a BMR home?
Only with MOHCD’s approval and through a MOHCD-approved lender. Limits on loan amount and cash-out uses are in the program manual and your recorded documents.
How long does it take to sell a BMR unit?
MOHCD says about four to six months in a typical market, including pricing (about 30 days), repairs, at least 21 days of posting, the lottery and buyer approval.
Can my children inherit my BMR home?
Under the 2018 edition of the program manual, heirs could keep the unit only by qualifying for the program; otherwise it was sold through the program and the estate received the proceeds. Confirm the current rules with MOHCD.
This is general information, not legal advice. BMR terms are set by recorded documents that differ by program and building, so read yours and confirm with MOHCD, and talk to a California real estate attorney about an estate, divorce or title change involving a BMR unit.
If you’re preparing to sell a BMR unit or buying in San Francisco, contact Diamond Real Estate Group. Our San Francisco real estate guide and San Francisco buyer services cover the rest of the market.
Sources & notes
- sf.gov (MOHCD): Below Market Rate (BMR) ownership programs
- sf.gov (MOHCD): Resell your below market rate (BMR) home
- sf.gov (MOHCD): Income limits and sales price levels for MOHCD homeownership programs (2026)
- MOHCD: Veteran priority presentation to the Veterans Affairs Council (Oct. 13, 2026)
- SF Planning and MOHCD: Inclusionary Affordable Housing Program Monitoring and Procedures Manual (July 2024 file)
- MOHCD: Inclusionary Affordable Housing Program Monitoring and Procedures Manual (2018 edition)
- SF Planning: Inclusionary Affordable Housing Program monitoring and procedures
Last reviewed October 2026 by Matthew Martinez.
