They're putting their wallets before the financial interests of these families. 

There could be winter activities nearby that attract people such as ice fishing, snowmobiling, etc.I also discovered they had variable rate pricing depending on which dates and if you stay 1 -3 nights or less in the high season, they limit stays to 1 week minimum, Friday to Friday, to minimize turnover costs, etc. 

The property was also in a great area, but needed quite a bit of work done to make it attractive to potential renters.

Top 5 Metros Attracting Renters From ElsewhereDenver:           48%Baltimore:       47%San Diego:       44%Tampa:            44%San Francisco:  44%And, the Not So Good Top 5 Metros: Where Renters Are Looking To LeaveOrlando:           50%Riverside, CA:   50%Detroit:            47%Chicago:           43%Charlotte, NC:   41%Source: Apartment ListSee more at: https://www.american-apartment-owners-association.org/property-management/latest-news/here-are-top-cities-where-renters-are-seeking-move/A little commentary...chasing demand isn't a recommended investment strategy. 

I'm game...A snip-it from a post I did on this thread about investing in Wisconsin: Milwaukee is sitting on some of the most affordable housing in the country, is adjacent to one of the largest freshwater lakes in the world, has entertainment & food that rivals every major metro, it's sports teams bat way above average for a small market which attracts hundreds of thousands if not millions of people here annually, economic development has been happening at a level unprecedented since the '50s (we are breaking ground on the world's largest mass timber building in June), has a tech ecosystem on the ground floor of attracting major talents with partners from the fortune 500 companies in town... 

Option 1. is  not attractive enough for me to consider going through with.

Also keep in mind in Baltimore the lowest grade assets will not attract section 8 though slightly higher grade assets will.

The property has been in 'pending' status for 2 weeks.The second is less attractive, but still not bad.

Of course, your returns won’t be as attractive (maybe they will) but your risk will also not be that high.

That being said, prices can be attractive.