This is becoming more true for government employees clearly given the recent "Use It" act which will require 400,000 government employees to go from a remote to a hybrid role which started in January of 2024 and will continue to ramp up as time goes on (Source 1, Source 2)This trend will continue as companies realize more increasingly they need to be at least hybrid to be competitive.

He demands the rent increase to $3,200 but you refuse to pay it.

When cap rates increase you have to have an impact on NOI great enough to overcome the cap rate adjustment plus a profit. 

Will you have cash flow on day one or do you need to increase rents or find better tenants? 

@David Rodriguez  MTR is about location for health travelers and you also have a healthy  population of snowbirds in Phoenix. 

This time, I would consider increasing your risk a bit now that you have the first one out of the way.

I'd suggest checking in with some social service organizations within a few miles of the property to see if they work with people/populations in the area looking for this type of house.

For LTRs, prioritize markets with population growth and strong job markets.Wherever you choose, work with an investor-friendly agent who knows the local market and can help you analyze deals.

Growing population, great employment opportunities, steady appreciation etc.The best amenity has been location.

Screening is definitely an area I studied up on beforehand, and having a large graduate student population to choose from definitely gives me more confidence.