Sure you can say "Well we'll make using X illegal as a rental criteria", but guess what, apartments are rented by humans and its easy enough to get the tenants you want.The law should treat people by their most tiny minority status:  The individual. 

The yard is tiny and the tank was right in line with the heating unit about 10-15 feet away.

I CAN NOT set a lower limit,  that is automatically discriminating based on family size,  a protected class.I have two tiny condos of only 520 s.f. each.  

We have a pretty large lot, .71 acre and are thinking about building a tiny/small house on the back side of our lot and renting our current house(3 bed 2 bath) either through airbnb or traditional tenants.

Just muscle flexing from tiny souls.

The back yard direcly abuts a new development that will have 700 luxury apartment units, 4 office buildings, and a tiny bit of retail.

I quit my job at the end of 2014 and in 2015, my husband and I decided to design and build our own Tiny House on Wheels (THOW) to start our path to financial independence. 

Like I said, we have a previous relationship as neighbors and tenant/landlord and its a tiny town...so "friends" as well. 

That's a tiny market to try to sell to.

As far as the limited supply, I think eventually cities will come back around to allowing MH or tiny home type communities because the demand is growing already and the shortage of affordable/starter housing will need to be addressed at some point in the near future.