About BMR's

More than 53 East Palo Alto families own “BMR homes,” made possible by the city’s Below Market Rate (BMR) program, which for decades has required developers of new for-sale housing to sell some of them at more affordable prices and which then keeps those homes affordable over time by restricting their resale price.  The program is sometimes referred to as the “Ownership BMR Program” because it also includes many BMR apartments for rent, as part of the City’s inclusionary housing ordinance.

Below-Market-Rate (BMR) housing is a program that provides affordable housing options for individuals and families with moderate, low, or very low incomes. These units are priced below market value to make them more accessible to residents who would otherwise struggle to find affordable housing in high-demand areas, such as East Palo Alto.

 Who Qualifies for BMR Housing?

Eligibility for the BMR program is based on several factors, including your household’s income, size, and current housing situation. Generally, applicants must meet the following requirements:

• Income Limits: Your household income must fall within the specified limits for the program (based on HUD guidelines).
• Residency: Priority may be given to residents of East Palo Alto.
• First-time home buyer: an individual who has not owned a home in the past three years.

Eligibility guidelines are provided as a unit becomes available.

 How Is Unit Pricing Determined?

BMR unit prices are set based on a percentage of the Area Median Income (AMI) for San Mateo County. These units are updated periodically to reflect changes in the local housing market and economic conditions. Price increases are derived from a combination of changes in Area Median Income (AMI), the Consumer Price Index (CPI), and current mortgage interest rates.

BMR units must be owner-occupied and are subject to covenants and resale restrictions.