Yes, the San Francisco Bay Area is quite pricey for housing. A peninsula (restricted area) with thriving technology companies (Facebook, Google, Apple, etc.), restrictive zoning and Uber-expensive construction costs result in a mondo-expensive home prices.
San Francisco requires $309,400 in MINIMUM qualify income to purchase a median sales priced house.
If we go down the peninsula to Los Altos Hills, we see available houses in the $2-40 million dollars range.
Of course, Los Altos Hills is not the median for the SF Bay Area. It is the Bay Area equivalent of Beverly Hills, Bel Air and Westwood in Los Angeles (non-coastal).
Needless to say, Fannie Mae and Freddie Mac do not buy mortgages from lenders in these areas. That is the province of jumbo lenders and securitizers like Redwood Mortgage Investors.