Check the section 8 checklist and be sure you will pass (do you have a lead cert if you need one, do all your bedrooms count as bedrooms, anything weird about the house that won't pass inspection? 

To answer your question though, yes home improvement and marketing counts.

So I'd be doing my best to get the highest possible rent/revenue but without needing or counting on that.What you refer as cut-throat competition exists in every market where you have demand.

I currently have 3 partners that I can count on if I find something that makes sense for both of us, or in some cases, all of us.

I agree that it likely doesn't count for concessions.  

Count the 10/15/20's.

I’ve had to check myself more times than I can count, but that’s part of the growth.

If you rent the basement room to someone or market the house as a whole counting the basement as a bedroom and a fire breaks out and someone dies or is injured in the basement without an appropriate egress from the room you could be liable for all of that.   

Properties within the same neighborhood, similar bedroom and bath count, similar square footage, etc.

Were you able to find a way to make that income count, or did you pursue alternative strategies to qualify for financing?