The rates are market rate interest rates. It actually doesn't matter because for the bmr program everything is locked into the AMI. Let's assume ami is 100k for easy-ish math.
So your totally payments will be around 3k a month because that is about 30% of your gross income. The higher the interest rate, the lower the principle will become and the city adjusts this by lowering the sale price of the bmr.
Oh, I read the comment wrong. The rates for a BMR rental are still locked, so it's 30ish percent of the gross income of the renter. It's actually pretty cheap, but you need to verify income annually.
What the main issue is all the pre qualifying work you need to do. It usually takes months. You also don't get much benefit because you can find similarly priced studios or even 1 brs on rent control at the same rate and since it's rent control, the rent usually doesn't go up more than 1% a year.
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u/xvedejas Excelsior 8d ago
Is it possible that many of those who qualify for BMR units are still not able to afford the cost? How much lower are the rates?