I recommend buying in a regular development where only about 10% of the units are BMR. These retain their value better. And you have to figure on buying and holding for the long term. If you buy high and sell in a down turn, that's a recipe for disaster and is unfortunately happening to a lot of people.
Short anecdote: My client purchased a luxury BMR condo in a luxury condo development and is very happy. His wife's health issues prevented her from going up and down the stairs at their old apartment; she couldn't hardly walk and couldn't leave the apartment. Their new place has an elevator. It has transformed their lives. She is now coming and going and even starting to walk again.
THE LAWSUIT IS A JOKE ALSO. BUT I TRULY O LOVE MY NEW HOME AND AGAIN VERY THANKFUL FOR THESE PROGRAMS.
BMR's are allowed to go up in value every year at the same percentage of average incomes in the area. So long as average incomes rises, so will your BMR. The restrictions on resale require that you sell to a low or moderate income qualified buyer. As low and moderate incomes rise, those low and moderate income borrowers will qualify to borrow more money and pay you a higher price on your BMR home.
Low and moderate incomes in the Bay area have been rising at a very high rate for the past 35 years and San Mateo is one of 4 counties with the highest incomes in California. This means that BMR's will climb in value every year at a steady rate, perhaps at a faster percentage than market rate properties. At no time will BMR exceed market rate properties values, but it is possible that they could sell at similar rates in the future. It all has to do with incomes in the area.