And when I specifically asked if this tax valuation would guarantee me a lot split, they said it would not, and that is a city decision. 

@Larry Nielsen I like Jonathan's suggestion, but I think an important decision for you is what is your goal.

At the end of the day this is a financial decision so if your reasoning not to invest out of state is a financial one then don't do it.

Since you own a single-family, your first decision will be what to do with that when you do decide to buy another property? 

Before making your final decision, I'd suggest running the numbers both ways - calculate your tax liability versus the potential long-term impact of accepting those unfavorable terms you mentioned.

Considering paying but there doesn't seem to be any guarantee or data to help me make the decision.

I would work with/or establish a team that knows that market well so that I could make a good business decision.

You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

Quote from @Jaycee Greene: Much of that decision is based on what you want to get in $ profit or % return.

I have zero experience with section 8 tenants and have done as much research as possible to make my decision. just wanted to see what opinions you all may have or hear about your experience with section 8 tenants.Thank you in advance for your input!