Clearly, HUD, state and local housing agencies (plus fire depts and municipalities) want to prevent landlords from packing in like sardines--unsafe, unsanitary, not enough space, parking etc...However, in the next breathe most of these authorities also prohibit discrimination against housing to families or children (unless a senior development or something)...

We are packed in there like sardines!

South Reno is like a sardine can now.

People (right now at least) don't want to be packed like sardines. 

The Sardine bar right on the corner of 18th and federal has brought in a nice little hipster stir.

Used $10 from one unit for one month to order fried Sardines.  

Welcome @Chris Sardine it’s a pleasure to have you here!

We can do this while also living in a decent primary residence with some acreage and a man- cave for half the price of the 600K sardine can we rent now.You asked for advice I 'll give you a bit more- Avoid having kids as long as you can and if your GF is on board with your RE dreams, keep her forever(put a ring on it).

Also people looking for places in your aren't looking for sardine cans.  

You may encounter additional zoning restrictions around rooming houses.The second issue will be the fact you are dealing with students, not enlistees in barracks or sardines in a can.