Hydrogen is mostly produced in conventional steam methane reforming plants. In this work, we proposed a membrane-based reformer-combustor reactor (MRCR) for hydrogen generation in order to improve heat recovery and overall thermal efficiency. The proposed configuration will also reduce the complexity in existing steam methane reforming (SMR) plants. The proposed MRCR comprises combustion zone, hydrogen permeate zone, and SMR zone. A computational fluid dynamics model was developed using ANSYS-Fluent software to simulate and analyze the performance of the proposed MRCR. Results show that high hydrogen yields were observed at high reformer pressures (RPs) and low gas hourly space velocities (GHSVs). Furthermore, by increasing the steam to methane ratio and addition of excess air in the combustion side, the hydrogen yield from the MRCR decreases. This is attributed to the reduction in the effective temperature of the hydrogen membrane. High RP, low GHSV, and low steam to methane ratio that increased the hydrogen yield also decreased carbon monoxide (CO) emissions. For an increased RP from 1 to 10 bar, the CO emission decreased by about 99%. The reduction in CO emission at high RP would be attributed to the effect of water gas shift reaction in the MRCR. Results of the extensive parametric study presented in this work can be used to determine the operating conditions based on tradeoffs between hydrogen yield (mole H-2/mole CH4), hydrogen production rate (kg of H-2/h), allowable CO emissions, and exhaust gas temperature for other applications such as gas turbine.