What impact does a percentage rented limit have on condo values?

[Paul Smythe]

I was curious to see what others think about this. I have a condo with an HOA that limits the number of units that can be rented to 25%. In your opinion, does that hinder the value of the property or does it enhance it?

There are two conflicting thoughts here, to me:

-One says that you are limiting the number of people interested in the condo because they won't be able to rent it out, thus lowering the prospect pool and price.

-The other says that it increases the appeal of the condo for someone who wants to live in it because they are not going to have a lot of turnover (i.e. consistent neighbors, other people who care about the community).

Ultimately I think the limit hurts property values, but I am sure there are factors I'm not privy to. Thoughts?