It may be a scary, and frustrating process for you both, but please don't be peer pressured into a major life decision if you are not comfortable.Best regards.

I have helped a handful of Hawaii investors purchase Air BNBs in Independence as well and just North of the River.

The statefarm agent I am working with is assuring me that it will be "written as a seasonal/secondary home for you with the endorsements to cover the air B&B"Is this adequate or should I be looking for more commercial full rental policy?

All of the things you are stating - like an Air BNB listing, actual rental, postings for rent, etc are great tools to reinforce your intent and use as investment. 

Is it a good idea to send them a no pressure letter in the mail proposing a conversation to possibly to solve there issue?

You do have to walk a fine line though, between consistent pressure and nagging:)3) A 4 year S8 waiting list doesn't really tell you HOW MANY voucher holders are in the area of your rental.

However, over the past five years or so, increased national attention has led to a surge in supply, thereby putting pressure on occupancy rates, which might hover around 50% annually.

I’m active duty Air Force and ran into the same issue at my last base.

Has anyone done well in the Phoenix area near Dbacks and Suns stadiums with renting out properties for Air BNB?

And political pressure, if the consumers want a change, will lead politicians to make that change.