Below Market-Rate Rents, Sales Prices, and Income Limits
Did you know that the City of San Mateo has 1,484 affordable rental units across 47 properties, and 286 affordable for-sale units within 32 developments...and counting? The number of affordable units continues to grow as new developments come online. Check out the City’s What’s Happening in Development page to find out about projects in the pipeline.
Within this portfolio of affordable units, the City sets maximum incomes, rents, and sales prices for its BMR units that are adjusted annually. Depending on the type of project, some rents and income limits are set by other regulatory agencies, such as the U.S. Department of Housing and Urban Development (HUD) or the CA Tax Credit Allocation Committee (TCAC). Read on for more information about the different types of affordable units and where these numbers come from.
City Rental BMR Units
The City’s Rental Below Market Rate units (BMR units) are rental units restricted to low- and very-low income households. These units are built in private, market-rate developments that are subject to the City’s BMR Ordinance and/or State Density Bonus Law.
The City publishes annual rent maximums as adopted by City Council resolution for most of its BMR units. Maximum incomes/rents for these properties are defined in the property’s regulatory agreement (also known as the BMR Agreement, Affordable Housing Agreement, or Density Bonus Agreement).
IMPORTANT: For project-specific income maximums and maximum rents, always refer to the property’s individual regulatory agreement and reach out to City Housing staff. The City contacts each BMR property annually with maximum rents and income limits effective for that property.
Maximum Rents Effective July 20, 2026 for City BMR Units
| Unit Type | Very Low Income Level | Low Income Level |
|---|---|---|
| Studio | $1,424 | $1,697 |
| 1 Bedroom | $1,614 | $1,944 |
| 2 Bedroom | $1,821 | $2,190 |
| 3 Bedroom | $2,026 | $2,436 |
Source: City Council Resolution No.78 (2026)
*Household size assumption is # bedrooms plus one.
**See also City of San Mateo Below Market-Rate Housing Guidelines Section V(a).
***Rent maximums include utilities. Tenants cannot be charged more than the maximum rent shown above for all mandatory costs associated with renting the unit.
Income maximums generally refer to California Health & Safety Code definitions. The California Department of Housing and Community Development publishes these income maximums on an annual basis, though the City also calculates some separately based on a property’s individual regulatory agreement. Below are the state-published income maximums.
IMPORTANT: For project-specific income maximums and maximum rents, always refer to the property’s individual regulatory agreement and reach out to City Housing staff. The City contacts each BMR property annually with maximum rents and income limits effective for that property.
2026 State Income Limits – San Mateo County
Number of Persons in Household |
Acutely Low Income Level |
Extremely Low Income Level |
Very Low Income Level |
Low Income Level |
Median Income Level |
Moderate Income Level |
|---|---|---|---|---|---|---|
1 |
$19,600 | $41,150 | $68,550 | $109,700 | $130,600 | $156,750 |
2 |
$22,400 | $47,000 | $78,350 | $125,350 | $149,300 | $179,100 |
3 |
$25,200 | $52,900 | $88,150 | $141,000 | $167,950 | $201,500 |
4 |
$28,000 | $58,750 | $97,900 | $156,650 | $186,600 | $223,900 |
5 |
$30,250 | $63,450 | $105,750 | $169,200 | $201,550 | $241,800 |
Source: CA Department of Housing and Community Development https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/income-limits-2026.pdf
Units in Affordable Housing Developments
The City also regulates units in developments where all units (with exception of manager’s units) are restricted to various affordability levels. These units are typically constructed by nonprofit or other private housing developers that are also subject to regulatory agreements from other public agencies, including the CA Department of Housing and Community Development (HCD), the California Tax Credit Allocation Committee (TCAC), and the U.S. Department of Housing and Urban Development (HUD). Maximum incomes/rents for these properties are set by the regulatory agencies that oversee them.
IMPORTANT: Always refer to the property’s regulatory agreement for specific information related to income maximums and rents and reach out to City Housing staff. The City contacts each BMR property annually with maximum rents and income limits effective for that property.
The following is provided as a reference only:
- TCAC (Tax Credit units) publishes annual income limits and rents – Effective July 2026 (coming soon)
- HCD (includes Multifamily Housing Program, Affordable Housing and Sustainable Communities Program, and other HCD programs) publishes income limits and rents – effective May 1, 2026
- HUD HOME Investment Partnerships Program income limits and rents – Effective June 1, 2026
What kind of unit do I live in? If you want to learn more about your unit and how the income limits and rents are set, reach out to housing@cityofsanmateo.org.
City First-Time Homebuyer Units
The City subsidized the development of First-Time Homebuyer Units at Meadow Court and Gateway Commons, two properties that originally included 174 ownership units. These units were restricted to moderate-income households. The original owners of these units received a downpayment assistance loan from the City when they purchased in 1988/89. Subsequent buyers have purchased the units as part of the City’s BMR Ownership program, while some have been sold on the open market because they reached the end of their affordability term (or in a few exceptional cases, for other reasons).
City BMR Ownership Units
The City regulates condominiums and townhomes restricted to moderate-income and some low-income households. These units are produced within private developments that are subject to the City’s inclusionary housing ordinance and/or State Density Bonus Law. The resale of these units is restricted to an affordable price, set by the City, to an eligible (e.g., moderate-income, first-time homebuyer) household. If a unit is sold outside of the BMR program on the open market, the City retains “excess sales proceeds" - in simplified terms, the difference between the amount the owner receives for selling on the open market and the amount the owner would have received if selling within the BMR program. As with rental properties, each for-sale BMR unit is subject to its own regulatory document. Please refer to the resale restriction agreement for details on how the unit is re-sold and consult with City Housing staff.
Below are the sales prices for new BMR units in 2026, as adopted by City Council resolution.
Maximum Sales Prices for BMR Units Effective July 20, 2026
| Unit Type | Very Low Income Level | Low Income Level |
|---|---|---|
| Studio | $211,000 | $335,000 |
| 1 Bedroom | $225,000 | $366,000 |
| 2 Bedroom | $258,000 | $418,000 |
| 3 Bedroom | $292,000 | $469,000 |
| 4 Bedroom | $328,000 | $519,000 |
| Unit Type | Moderate Income - Condo or Townhome | Moderate Income - Single Family Detached |
|---|---|---|
| Studio | $521,000 | |
| 1 Bedroom | $579,000 | $779,000 |
| 2 Bedroom | $657,000 | $882,000 |
| 3 Bedroom | $735,000 | $986,000 |
| 4 Bedroom | $806,000 | $1,077,000 |
Source: City Council Resolution No. 78 (2026)
Assumes HOA dues, taxes, and insurance as part of monthly housing cost; 5% downpayment; and a mortgage interest rate of 4.51% (based on 15-year average for Freddie Mac 30-year fixed-rate mortgage).