If you are in-line with them, keep adjusting your advertising and rental price until you get solid applicants.

Prices will (slowly) adjust. 

When it changes so much that real estate investors will no longer have a place in our society we will all adjust  believe me. 

With 7 years left on primary the cash rent value not adjusted for inflation is 1,750,000.If the next tenants will only pay 20 a foot then you can lose money.

The text of the contract as it relates to obtaining financing reads: (b) This Contract is contingent upon Buyer obtaining approval of a conventional FHA VA or other ______________ (describe) loan within _______ (if left blank, then 30) days after Effective Date (“Loan Approval Period”) for (CHECK ONE): fixed, adjustable, fixed or adjustable rate in the Loan Amount (See Paragraph 2(c)), at an initial interest rate not to exceed _______ % (if left blank, then prevailing rate based upon Buyer’s creditworthiness), and for a term of _______(if left blank, then 30) years (“Financing”).

The gist I'm getting is that the cost basis for the new property will be stepped down to adjust for depreciation on the property that's being exchanged out. 

Make your adjustments for:Year built, Sq Footage, Baths, Half Baths, then start diving into condition.

Don't offer them incentives, don't wiggle on the rent, don't give them a long period of time to adjust.

I'm wondering how significant this is overall regarding resale, and whether I should adjust the MAO to be lower than 70% to accommodate the location--or expect a lower ROI at sale.

depends on location, in a city they should be within .5 mi, in a suburb 1 mile and rural  5 miles but unique properties can be stretched further, I have done thousands of BPO's for banks, the rules were 3 listed and 3 solds, within 20% speck and similar condition, and make appropriate adjustments for differences, there is more art than science to it.