As others have said, the best thing your son can do is run far from this deal, buckle down, save his pennies (he probably already is doing this), house-hack, and improve a property with sweat, hard work, developing a DIY skillset, and self-managing tenants. 

With this data, develop your own lead gen system that works.

Given the circumstances, I’m unsure whether to proceed or back out of the contract.

Many of the surrounding communitie are up and coming with a lot of developments happening. 

How would you have preferred Sunrise to have developed at relationship with the residents?

Generally larger commercial properties and shopping centers are easier to classify with hard and fast rules, but to the points above the residential areas really move very quickly and have way more nuance than most people care to admit.zip codes are generally way too large for my liking at least in my market to provide any kind of insights other than macro level economics but even then highways or rivers that cut through a zip code can end up with totally different trade areas.we can get pretty granular with cellphone data and with grocery center data to understand the trade areas and their true boundaries, but that kind of data pull is generally only cost effective for investors doing larger scale projects or developments, and honestly we still just end up getting on the ground and feeling it out, so I generally tell people that the money is better spent on a plane ticket and weekend trip in the area you are looking rather than any kind of "trade area" level data studies.and generally B class in 1 area means something different than another. 

I believe there may be special exemptions around a job relocation or other extenuating circumstances.

I mean really robust and to us the money is made finding those pearls of land that can be developed

The main reason is to incentivize affordable housing development.

These type living arrangements are primarily short term until user circumstances change