What is "unnecessary" and "ridiculous" are completely arbitrary - what you view as an "unnecessary" clause about primary residency is likely very necessary to a bank that does not lend on investment properties under the terms of the loan you are getting.

This is despite there being other similar single-family home listings in the area that are not grouped in this way.I contacted Zillow about this issue, especially since when I search for my specific listing directly and click on the public view, it shows outdated information (e.g., old history) rather than listing it as available for rent.What is going on with Zillow’s listing display?

You know that whatever they believe is just their point of view.

Many new investors gravitate towards the lower cost SFH's because they are easy to finance, abundant in many markets and are the easiest pathway to completing the BRRRR  which most new investors view as the ultimate real estate success story. 

This can be cap ex to the building's common elements or cosmetic like a new lobby that you as a landlord may not view as a worthwhile investment but the owner occupants may.

I hope the comparative market analysis I just sent over view email helps.

Deal makers- development potential, vehicles per day, road ingress egress off highway, signage potential, multiple road accesses, value add potential- housing- trees, boulders, ponds, walkout, views, right side of town, power-line right of ways, etc6.

I had people coming to view the house tomorrow: postponed them because of this -- several were interested in a mid-month start date (we're in a university town - lots of movement!). 

From my point of view for event guest screening and security deposits, Superhog is reliable and integrates well for STRs and events, but you might need to adjust its setup for your use case.

As an out of state investor, I’m curious how management companies might view this type of strategy.