You'd be able to do it "owner-occupied" while you lived there but it then has to meet a different criteria (500 foot buffer / density requirement) to be ran as a non-owner occupied STR. 

Hope that coming in at 850k will get my foot in, then hopefully negotiate down after inspections.

This price per square foot relative to the area in sky high!  

I ended up buying a house I had never set foot in, and was so confident in his ability to spot the cause of some damage that looked worse than it was, that I was able to beat a bunch of other cash offers by removing the inspection contingency.

There was 120 ft from the home to the city with a 60 foot belly.

This option is an easy way to get your foot in the door with limited to no upfront costs and a good credit score. 

I would suggest that you provide agents with options to get you foot in the door and get started. 

Also, I am concerned that not getting a great deal on a property or financing here could leave me with an undesirable debt to income ratio when I am at the next duty station.If there is anyone that has past experience with this situation, or has worked with someone in my shoes and could provide guidance so I can get started on the right foot , I would appreciate it.

I can't speak to their costs since I was never footing the bill, but they were always very friendly and informative.

It’s not a matter of landlords having to do their part, some landlords genuinely cannot foot the bill for the tenants.