We recommend they be fully evaluated by a qualified electrical contractor or engineer.The front bedroom closet has foam insulation installed as the ceiling but has gaps around the sides that are not fully fire blocked/fire sealed to the level above.There are moisture stains and biological growth at the bottom of the rear bedroom closet wall opposite the bathroom.ATTICWe could not find attic access in the interior of the home, there was a window on the front of the house over the front porch but it was caulked/sealed shut and we could not open it without causing damage.

The challenges of the space are there’s 3 storiesthe 2 bedrooms and hallway on the 3rd story have tall (17ish ft) ceilings. they're doing ceilings and closets not just walls

If the federal limit has set an amount for a 3 BR I don't understand why a local jurisdiction would overlay their own limits especially with the housing shortages.Back on topic, a lot of people advertise the small room as a den but as @Russell Brazil mentioned, it is 70 sq ft, a window, closet, and door it is legally a room. 

I have a section 8 rental in Washington DC now worth $410,000 I paid $160,000 4 or 5  years ago.I went section 8 because the neighborhood was not that great  and in Wash DC it can take 6 months to evict so I choose the guaranteed income approach and I got a full deposit.1) I failed a Section 8 inspection for the broken window latch, in a closet on the third floor on the third inspection2) Mysterious thing  "break" dining room chandelier, two exterior lights. ( before I purchased the house was VACANT for one year and nothing like this happened)3) self entitled attitude of occupants who are living for free4) house is DIRTY- really just broom sweep my beautiful hardwood floors.5) difficult to get them out.6) rent increases of 3% is WAY under market.7) with Covid tenant does not want me in house8) the 1099 income is fully taxable

Would probably take 2-3 hours (maybe).As for the rest of the house, pay $300 and have the property inspected so you know what you are in for as to other repairs needed.As for the bedroom switch... any room that has a closet can be counted as a bedroom usually.  

She rented the living rooms to 2 to 3 girls, closets, garages and even the laundry rooms.

Look in medicine cabinets or water heater closets, areas of that nature for a tag.

The Master has wood trim (is it painted purple around the closet?)

Or a closet light without a globe.

The "fix up" included a full gut and remodel of the kitchen with a layout change; remodeled and rearranged master bathroom and closet (with removal of a HUGE 1970's party tub!)