Obviously, rents are very cheap there, but it seems I can find MLS listings that match or come close to the 2% rule.

It’s a solid way to keep revenue steady while staying within the rules!

You could also contact a local attorney - but that is probably pointless early in the process if the city rules it out.

I won't rule out any option other than DST's as in a perfect world I would do both for diversity and a little more liquidity. 

As a general rule, many landlords raise rent 3-5% per year, which is a more gradual and manageable increase. 

HOA's can be a negative so be sure to check the HOA regulations to see if they have any rules around 30+ day stays.

Rest assured; the process is designed to be straightforward. 

You might also want to network with local businesses that may have relocating employees or contractors in need of housing.Local Regulations: Some areas have different rules for mid-term rentals than for long-term or short-term rentals, so make sure you're compliant with local laws.If you're new to mid-term rentals, connecting with investors or property managers already working in this space can be invaluable.

And have you checked the 2/3/10 rule?

I've found that most CPA's have different understandings of the rules.