As a new landlord it is common to try and go the extra mile to be accommodating to tenants. 

I am not interested in jumping through hoops to get my home "qualified," it would likely delay the move in and therefore impact my income.Can I still hold the applicants to the same income requirements or am I forced to make accommodations for Section 8?

Obviously, the contract would need a little tweaking to accommodate such things but that is not all that hard.  

My gut told me that I needed to ask the belligerent tenant to leave asap (I am very accommodating to tenants' needs, but this woman also had some mental problems). 

You are required to make a "reasonable accommodation" for a disabled tenant, but you don't have to pay for modifications. 

I am currently studying home inspection and was with Justin on Monday at the Jeffersonville place and he was so accommodating and let me do the inspection with him!

My experience has been that if you work together with they city that they will accommodate your time lines, they just want to see progress. 

We went with the vinyl flooring to accommodate Pet Owners.We've lowered the price to 760 which is below the median rent in the area also below the Z Estimate on zillow and right in the middle of the range that I calculated initially 700 - 800.  

Being required to provide a reasonable accommodation is not the same thing.

And as handicapped individuals, they must be allowed a "reasonable accommodation."