The purpose of below market rate (BMR) units is to provide housing stock to low- and moderate-income individuals and families looking to buy and who can’t afford market value rates.

There are certain income instructions that must be met, and each city has certain rules that must be followed to maintain ownership.

There are many pros of buying a BMR unit including tax benefits, homeowner rights, and by paying off a portion of your principle monthly you continue to build equity which would help with the purchase of your next home.

What are the cons? You don’ get much of a profit when selling your home: Price is set by the median income levels at the time of the sale, so the value of a BMR unit doesn’t appreciate the same way a market-rate home would.

Learn more about BMR programs in the East Bay for cities like Berkeley and Emeryville, and if you need help understanding the BMR options in your city, drop me a line.