You have noise violations in the lease and hopefully you had something about guests as well. 

You should have noise monitoring aka minut and exterior cameras.

Noise and smells, hours of operation, and access issues are very common, and many commercial tenants have conflicting needs with residential.

In 15-30 years, this will all be noise, and properties values and rents will have increased.In the meantime, buckle up.

Up/down units can be terrible for noise.

If you're concerned about issues, make sure to have a camera pointed at the driveway, smartlock that logs all the comings and goings, noise monitor inside and you can even place one in the backyard, and lastly get damage rental insurance on each booking that the guest pays for by baking the charge into the nightly rate.

An extra $100k or $200k is kind of in the noise at this stage for us. 

I contacted the local PD, no police reports have been filed only phone calls placed from my property about concerns at other nearby address...dog barking, noise complaint, the latest was assist person.

The nice thing is you have the housing authority to back you up when they don’t pay their portion or there are issues with noise or messiness.

They consider it fraud and will take action against those who dare to rattle their cage.That being said, IF they approve the tenant and rent you are asking, and the total rent falls within their guidelines and tenant income qualifications, disclosed on the lease you are good to go.BTW, in year #2 of the lease, you can ask for a rent increase, and don't be shy about a raise--at that point, all they can say is "no".