South San Francisco Real Estate Guide
South San Francisco’s Below Market Rate (BMR) Housing Program: How It Works for Buyers
A real path to homeownership for qualifying buyers, through a lottery, not a regular listing search
|
Lottery How Units Are Awarded |
3 Years No Prior Home Ownership Required |
30-Year Fixed Required Mortgage Type |
SCMC 20.380 Governing Ordinance |
South San Francisco’s Below Market Rate program offers a genuine, if narrow, path to homeownership for qualifying buyers, tied to new residential development rather than the open resale market. Understanding how it actually works matters before you assume it’s an option, or dismiss it as one.
Where BMR Units Come From
Under the city’s Inclusionary Housing Ordinance, Chapter 20.380 of the Municipal Code, new residential developments are required to include a percentage of units priced below market rate for qualifying low- and moderate-income households. These units typically appear within specific new developments, such as the Bayview 22 project near Oakmont Drive and Westborough Boulevard, rather than being available citywide at any given time.
Core Eligibility Requirements
| Requirement | What It Means |
| First-time homebuyer status | No ownership interest in residential property for the 3 years before applying |
| Household income limits | Set annually based on Area Median Income published by the state |
| Homebuyer education | Completion of an approved housing counseling course required |
| Financing type | Must be a 30-year, fixed-rate, fully amortizing loan; no balloon payments or adjustable rates |
Some Developments Add a Local Employment Preference
Certain BMR developments have offered priority to applicants who work at least 20 hours a week for a business physically located in South San Francisco, though this functions as a priority ranking rather than a strict eligibility requirement. Eligibility itself is based on income, household size, and financial capacity; the local employment preference simply affects your place in line among qualified applicants.
What Happens When You Resell
BMR homes carry resale restrictions. When you eventually sell, the home must go back to another income-qualifying buyer at a below-market price, through the city’s monitoring process, not onto the open market at full value. This preserves the unit’s affordability for future buyers, but it also means your appreciation is genuinely capped compared to a market-rate purchase.
How to Actually Apply
| Monitor the city’s Economic and Community Development Department for active BMR listings |
| Complete required homebuyer education before applying, since it’s a prerequisite, not an afterthought |
| Apply separately for each specific listing; approval for one development doesn’t carry over automatically |
| Understand that selection happens by lottery among qualified applicants, not first-come, first-served for most listings |
Key Takeaway
South San Francisco’s BMR program offers a genuine homeownership path for qualifying buyers, but it operates through specific developments and a lottery process rather than a standard home search, so it requires real advance planning.
Frequently Asked Questions
How do I find out about available BMR units?
Through the City of South San Francisco’s affordable housing resources page, which lists active developments and application windows.
Can I sell a BMR home for full market value later?
No, resale is restricted to another income-qualifying buyer at a below-market price through the city’s program.
Do I need to work in South San Francisco to qualify?
Not always required, though some developments give priority to local employees among otherwise qualified applicants.
Is selection first-come, first-served?
Generally no, most listings are awarded through a lottery among qualified applicants.
| Related Reading | |
| A First-Time Homebuyer Guide for the Peninsula in 2026 | Compare BMR against conventional financing options. |
| South San Francisco Neighborhood Guide | See where recent BMR developments have appeared. |
| HOA Basics for Peninsula Condo and Townhome Buyers | Most BMR homes are condos with their own HOA considerations. |
| South San Francisco Homes for Sale | Browse current market-rate listings across the city. |
Exploring Your Homeownership Options in South San Francisco?
I can help you think through BMR alongside market-rate options for your specific situation.
Holly Noto | Coldwell Banker Realty | DRE#01244498, DRE#01908304
580 El Camino Real, San Carlos, CA 94070
650.544.6185 | [email protected]
Program details reflect the City of South San Francisco’s BMR Procedures and Guidelines as of 2026 and are subject to change. This content is not legal or financial advice; contact the city’s Housing Division for current requirements.
