How does mid term rental income affect appraisal, if at all

[Alessandro Stammes]

Just bought my first duplex here in Norfolk VA. I'm using a 203k loan and my plan is to live in one of the units for a year and then turn both units into mid term rentals for nurses. My hope is to get rid of PMI when I refinance into a conventional loan (asap). I could not find any info on how mid term rental income can affect an appraised value. Does anyone know how this work? I'm 40k short of that magic number with the closing appriasal and I know with the projected NOI doing this strategy I could get there easily. Do banks look at this NOI or is it just for long term rentals exclusively (total noob here, sorry)