An LLC for example has some benefits in keeping your property from being garnished and sold and often judgements are only allowed to put charging orders on the property. 

There is no judgement.  

Good, now let us move on, I'm sure there are other threads you can pass judgement on too.

I have a question on how do you make the judgement if the section 8 tenant meet the income criteria in regards to the general rule of thumb of 2.5 x  of rent as a income requirement. 1.

I would still charge the security deposit and not let our super stupid idiots at the city council deter me from collecting a security deposit and paying your tenants a stupid 1% or $10 for a $1,000 security deposit.If you are so worried about being $1.00 off and getting fined be the best landlord in town and give your tenants $20 every year and they will think they died and wen to heaven.As for not getting a security deposit and suing for damages, you can't squeeze blood from a rock and I found it is cumbersome, time-consuming and expensive to take a tenant to court and win, go to court a second time for an appeal and win and go to court two to three more times to do discovery for your tenant's assets to try to collect on your judgement and still not get one penny.

Please note that this is a general comment and there's no judgement about you here.

And before the judgement comes down, this was a relationship over 3 years old, lots of history and they had actually basically become friends of mine.

Eviction processes are nasty as it would create a judgement against you from a court requiring you to pay me the money owed, plus damages, and you would have that placed on your legal record preventing you from renting in the future and taking out any favorable loans.It's up to you BLAHBLAHBLAH, get back to me.Eric

I then ordered the title report which shows a judgement and lien against the debtor and property along with a couple of liens against the property from the city/county.

You should ask yourself what you would do if you encountered a large judgement against your property management firm.