Seems that we're operating in a gray area.Hope this is helpful!

At that point, an appraiser would check to see if it operating as designed.

I’m a CPA, local Real Estate Agent, and own/operate a property management company here. 

We specialize in owning and operating (we are vertically integrated and manage our own properties) multifamily in markets that have good job growth and good population grown but are underserved and fly below the radar.After underwriting many deals in the North Carolina markets for almost 18 months we found an off-market deal that met our stringent underwriting criteria.

However they had to have the laws changed in order to operate, which only happened because of a specific set of circumstances involving a huge flood and the owner being friendly with the mayor.

Active investing - CREATE wealth through forced value increases, financial engineering, better operational efficiency. 

One option that might make more since is finding a bitcoin mining operation, because with Starlink, you can essentially set up an operation anywhere, so if you can buy $100/acre land in a sunny climate, Bitcoin Mining generates approximately $.085/kw in electric rate. 

If your STR no longer qualifies as an STR and is now operated as an MTR/LTR - I'd say no problem.

It would be good to understand what other think is a good net operating profit, cap rate, and ROI in today's world which I'm sure can vary by market. 

You need to let the tenant know this and that an eviction can affect their standing with the housing program.Since you did not know this basic thing, I would really recommend getting a property manager and watching how they manage until you have a better sense of how to operate.