Then, I typically see them take about a half to a third of that number for the adjustment factor.

About half the people I talk to are investors looking in that area.

Many would be surprised to learn that about half of all states allow discrimination based on marital status, meaning a landlord can reject applicants that are not related and not legally married.As always, it's important to know the laws of your jurisdiction.

It sounds like a few people on this thread don't really understand how PMC's operate or why they may charge extra fees.

In many markets section 8 is higher than market rate. and investors need that extra return to mitigate the risk of sec 8 tenants generally speaking.

   #9  SWEETEN the POT:    Do not think that paying extra rent is going to entice owners to rent to you. 

Always budget extra for surprises.Skipping Permits – Even small renovations may require permits.

Adding mass to the walls works wonders—attach Mass Loaded Vinyl (MLV) to the shared wall, then cover it with a layer of 5/8” drywall using Green Glue soundproofing compound for extra noise-blocking power.

Since they are responsible for maintaining the relationship with you after the transaction closes, this approach adds an extra layer of confidence and security to your investment. 

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage.