FHA requires it to be your primary residence.That said, the lower down payment is enticing to the borrower and is a valid loan option.

Which will manifest as tax breaks, loan subsidies, or other incentives offered to entice investment capital to flow into affected markets?

If you are starting out I think you might want to sit out this one unless of course you are seeing a lot of value in this location. 180K for a SFH in Alexandria would be enticing.

Do you think this is more enticing? 

Right now, any property along South Bay near ECR in a transit oriented area is selling for about 5million per acre and developers will tear whatever is sitting on the lot down to build high density apartments to keep up with demand.Sam, you live in Sunnyvale so you know all about the huge tech companies around South Bay that entice fresh graduates with six figure salaries to start with huge bonuses and incentives.

Apts sometimes try and entice new tenants to lease with them by offering a free Big Screen TV.

A 5 year tax break is also being offered to entice buyers."

I don't know the right way to set this up this fictitious scenario so that I get what I want (good assignment fee), the seller gets what s/he wants (out from under the property) and the buyer is enticed to buy knowing there is a strong possibility s/he will make a profit after rehab, PAYING THE BALANCE of the note, and selling (assuming they don't hold the property).  

You don't know at what price you are going to buy the property at and if the discount will be steep enough to entice the hard money lender.

I have a couple in Henry County, but I couldn't find many deals in 2011 and 2012 that were more enticing than the deals I was finding on the Northside.