2/1 or 3/1?

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For all of you MF pros out there, what rents better, 2/1 or 3/1 units?

I currently have five 3/1 units that I am remodeling. They are small 950 sq. ft town homes, all attached, with one bedroom and bath downstairs and two small bedrooms upstairs... up a narrow, enclosed staircase. All bedrooms have good closet space and windows... so they are true bedrooms, just the upstairs two are tiny (9 x 15).

If I keep them as 3/1s, I would have to allow at least 7 people in the units, not including infants. That's a lot of people in such a small space. In reality, will people try to squeeze that large a family into a unit this small?

If I convert them to 2/1s or 1/1s with a loft, I lose some monthly rent, but do I save a lot more wear and tear in the long run? Or should I only be concerned about keeping my NOI as high as possible?

What size units have the highest vacancy rates in your experience?

Will large families tear up my units? Or will they be better tenants and stay longer?

Lots of questions, but looking for insight before I make a final decision on the remodel...