Quote from @Michell Chase: It isn't a large amount but my concern is that if I remove the tenant in July I have no deposit in the event that there are damages to the unit. 

Not worth the liability risk and the potential damage pools leave.

In our rental agreements, we use the security deposit to cover any damages once the lease has ended.

You should bill them both for the damages, take pictures and go to court.

Despite the risk of losing their Section 8 status, tenants rarely pay their share.There is likely to be significant damage caused by Section 8 tenants.

Reaching out to other investors in the area to find someone trustworthy and switching things up before the damage became too costly.From what I’ve heard in Bloomberg, cities like Indianapolis, Omaha, and Austin are all great for rental investments.

During your initial walkthrough, inspect the property for any major issues such as structural damage, roofing problems, plumbing, and electrical concerns, while documenting all cosmetic and functional issues with detailed photos and notes.Once you confirm the property’s potential, finalize your ARV and calculate the repair costs using either a reliable estimator or insights from contractors.

Tenant further acknowledges and agrees that they shall be liable for all damages to _______ system due to intentional or negligent acts by the tenant, it's invitees, guest,  agents or licensees" 

If they damage your property here, you're SOL!

You can look at a mobile home and see it as an easy rental with new carpet, trim and some paint but there are other bigger uglier expenses that can come up.Roof Replacement, soft floors (water damage) in kitchens and bathrooms- most floors are particle board, exterior door replacement (special order), underbelly insulation falling, bad hot water tanks with rotten floor underneath (real joy), bad windows (water again), bad bloated siding (water), water damaged base frame around perimeter of home, cracked tubs (special orders) and frozen pipes (Good luck finding a plumber to come work on a mobile home- they do not exist).