What this means, is that you can charge them rent until you find a suitable tenant, plus your advertising fees, etc.  

This will be my first Sec8 rental property - Is there a "standard" lease typically used with Sec8 tenants or is the TAR lease suitable?

You risk losing a tenant to gain a few more dollars, which now has to be regained over the longer term, and also poses other problems about the suitability of the new tenant that you put into your unit.You just said in your the other thread that some of your tenants try to avoid you, mine don't. 

(I believe this may be exactly what you are looking for as far as actual rent payments are concerned.)Also, for the tenant's to receive the vouchers the governing body (in this case CHA or HACC) does a decent job of helping the tenant determine what they can afford and the dollar range that would most suitable for them.  

Are you pre-screening that they are suitable for the unit.

Your conscience is speaking to you, you have hard evidence they may not be suitable, you are probably right to be anxious.

Your Option 1 - Tenants who are breaking their lease should put some effort into finding a suitable replacement for themselves. 

I call employers, references and previous landlords and if all checks out and the applicant in all regards is suitable I pull the credit check.

Instead of him finding a suitable replacement (which I had agreed) he offered to pay 3 months of rent (his part) if I take the responsibility to find a replacement.

Find a more suitable tenant that will support you in properly operate your business.