Hi Conner, this is very common with MTRs.

Great question and a common one that many face!

All this fancy mumbo fha guideline gumbo means is that your projected market rents assuming all units, if it were rented Times 75% need to be greater than what your monthly payment is  (PITIA = principal/interest/taxes/insurance/assessments monthly), other wise FHA will not lend at that loan amount so common solutions to this when rents are too low in your local market are to put more money down payment which defeats the whole purpose of low 3.5% down FHA doesnt it?

This is a common enough problem that we have built a lease break fee into our lease.

Super common in Chicago. 

However, with rising property prices and rents not keeping pace, it’s becoming more common to see 0.7% to 0.8%.

Commonly it's gas.What about electric and gas?

And 5yr is rather common also.

You find the house completely trashed with missing appliances and cabinets, tenants were cooking meth, windows broken, etc. 6-8 months of unpaid rent, unpaid utilities, thousands to empty the abandoned property and trash, $50,000 to completely renovate the property and make it rentable again, plus all the time, energy, and stress along the way.I would actually argue this is pretty common and not even the worst-case scenario. 

Commonly done.