Three SF below-market condos for sale. The first closes Dec. 7

A two-bedroom condo a half block off Market Street, 802 square feet, for $392,481. That is 31 Page Street #203, the cheapest of three below-market-rate condos San Francisco is selling by lottery right now, and it costs about 31 percent of the typical Hayes Valley home, which Houseberry data put at $1.25 million in September 2026.

All three are resales of city-restricted units on DAHLIA, the housing portal run by the Mayor's Office of Housing and Community Development (MOHCD). The deadlines fall in the first week of December. The first, a one-bedroom with parking at the Knox on Potrero Hill, closes at 5 p.m. on December 7.

This is the second batch we have tracked this fall. Our October roundup covered five condos from $222,167, and every one of those lotteries is over. The new three cost more, $428,411 on average against $338,262 in October, and the trade is the same one. You buy below market, and when you sell, you sell to the next qualifying household at a price the city sets.

Three condos, three deadlines

None of these came from a redevelopment deal or a condo conversion. All three are inclusionary units, the share a private developer had to set aside, in buildings finished between 2014 and 2016.

Only the Knox unit comes with a parking space. It is also the only one with a price range. DAHLIA sets its affordable price at $452,002 and lets buyers offer up to $467,674, but paying more than $452,002 rules out the city's BMR down payment loan and may cap what you can sell it for later. The listing carries a second note worth a phone call: a settled lawsuit at the building, with repairs not yet completed.

31 Page is a unit in the 1600 Market development. A twin of it, #503, listed at $392,482, closed its lottery on November 4. The two-bedroom requires at least two people in the household. 1400 Mission has the lowest HOA dues of the three at $582 and, at 120 percent of area median income, the widest income band.

The discount depends on where you stand. Potrero Hill's typical home was about $1.55 million in September 2026, according to Houseberry's Potrero Hill price history, so the Knox unit sits near 30 percent of it. South of Market is a condo neighborhood with a typical price of $766,625 in August, and the 1400 Mission unit is more than half of that. Citywide, Houseberry's typical San Francisco home was $2.2 million in August. These typical prices cover every kind of home, so read them as the going rate, not as a comp for a 631-square-foot one-bedroom.

Houseberry's scores add what price cannot. Hayes Valley rates 3.1 out of 5 overall, 63rd of 92 San Francisco neighborhoods, with a safety score of 3.7. Potrero Hill is 3.1 overall and 3.4 on safety. South of Market rates 2.1 overall, 90th of 92, with 1.9 on safety and 3.2 on amenities.

What each one costs a month at 7.18 percent

This is an illustration, not a quote. We used the same assumptions as in October: 3 percent down, a 30-year fixed loan at the Freddie Mac average of 7.18 percent for the week of November 5, San Francisco's 1 percent base property tax, and the program's top housing-cost ratio of 43 percent of gross income. Insurance and special assessments would push the real number up.

Two of the three leave a real window.

A two-person household earning from about $103,000 to $129,700 can carry 31 Page. A single buyer earning from about $104,000 to $136,150 can carry 1400 Mission.

The Knox unit is the tight one. One person at the $113,450 cap would need about $50,000 down, roughly 11 percent, to keep the full $467,674 price under 43 percent of income. At the $452,002 affordable price, that drops to about $32,500. A two-person household, capped at $129,700, clears it with the minimum down payment.

Rates helped a little since October. At 7.40 percent, the 31 Page loan would cost about $57 more a month than it does at 7.18.

We think 31 Page #203 is the one to apply for. It is the only two-bedroom, it is the cheapest per square foot at $489 against $674 and $696 for the other two, and it is the cheapest outright. The trade-off is real. There is no parking, you need two people in the household, and you will sell it back into the program at a restricted price, so it builds far less equity than a market-rate condo on the same block.

The rules, and the waivers that expire in June

San Francisco's BMR ownership rules begin with the first-time buyer test: no one in the household can have owned a home in the last three years. The condo has to be your primary residence, you cannot rent it out, and any refinance needs MOHCD's approval.

Before you apply, sf.gov's eligibility page asks for homebuyer education from a MOHCD-approved counseling agency and a preapproval letter from a MOHCD-approved lender, dated within 120 days. The loan has to be a 30-year fixed.

Two of the three listings, 31 Page and 1400 Mission, carry the temporary waivers MOHCD announced on June 15, 2026. They raise the qualifying income level by 20 points of area median income, which is why 31 Page shows 100 percent and 1400 Mission shows 120. They also exclude income from assets, let you finish homebuyer education after applying, and allow a down payment over half the price. They expire June 30, 2027, unless MOHCD extends them. The Knox listing does not mention them.

The caps come from MOHCD's 2026 income chart. At 100 percent of median, a household of one can earn up to $113,450, two up to $129,700 and three up to $145,900. At 120 percent, one person can earn up to $136,150 and two up to $155,650. Lottery preference goes first to Certificate of Preference holders and displaced tenants, then to people who live or work in San Francisco.

The Knox application closes first, on Monday, December 7, and results for all three post by Christmas Day. Before you choose between Hayes Valley, Potrero Hill and South of Market, see how each scores against the rest of the city on our San Francisco neighborhood ranking.

Sources

• DAHLIA San Francisco Housing Portal, for-sale listings, pulled November 9, 2026
• MOHCD 2026 Maximum Income by Household Size, effective June 1, 2026
• sf.gov, Below Market Rate ownership program rules
• sf.gov, Determine if you can buy in the affordable housing program
• Freddie Mac Primary Mortgage Market Survey, November 5, 2026
• Houseberry San Francisco neighborhood ranking and neighborhood price histories, August and September 2026