You certainly want to vet your property manager to ensure they are focused on balancing asset protection with tenant satisfaction.

If so, you will need to apply for a change of number of bedrooms on the standard CHA rent increase form.

It does beat the expected inflation rate of 2% set by the Fed.Rents will remain about the sameWhat’s interesting is they also expect:A 11.7% increase in existing home inventory followed by Single-family new home starts growing at an impressive 13.8%. 

This is where you can significantly increase the value of the property by making improvements that attract quality tenants and justify a higher rental price.

When getting new tenants I've found the increase to be much more. 

The median home value in Phoenix as of April 2023 was $368,657, which is a 23.5% increase from the previous year. 

As other people have mentioned, does it increase risk of being rent controlled down the road?

We increased the rent slightly after the first 24 month lease and were able to recently increase the rent when the first tenant moved out.Lessons learned?

The median home sold price reached $582,329, reflecting a 9.7% increase from the previous year, with a median price per square foot of $325.

The increasing barrier to entry results in fewer new STR's coming available for sale, but also fewer options for guests to rent.