It is important to note the difference between FHA 1988, and the ADA, Americans with Disabilities act which governs Public Accommodations.

By-right uses are much simpler since they don’t require additional government approval beyond standard permits.Development Standards: Once zoning is clear, factor in the regulations such as setbacks, parking requirements, density, and other local standards.

I'm very surprised that the government has no regulation on this!

And if they all add up to zero, you’ll earn 0.038% on your money  Or you could put the $125k in the bank and earn a government guaranteed $520/mo.

Is there any concern that the local government would ever ban short term rentals altogether?

Since securities law is federal, they can be located in pretty much any state.

For the 10 year period spanning October 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9% in that period.With inflation nearing its 2% target and signs of a slowing labor market, The Federal Reserve recently made its second cut to the federal funds rate since the start of the COVID pandemic.

I know there have been delays and issues during government shutdowns but this is a new one for me. 

I bank with Navy Federal Credit Union, and they have a great 20 year interest only HELOC option in which I could utilize my substantial home equity.

So most likely, and please check me on this, I believe they will pay for the tenants rent for a year or so, but then, the tenant will have to get a job or go through a different government subsides program.