that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

However, note that claiming additional depreciation will increase, not decrease, depreciation recapture tax (up to 25%) when you sell.Key Considerations (Updated for 2025):1.

Just sent them a rent increase notice every year.

Also, can you rent out each room for MTR?

If I terminate property manager lease for existing PM for rented unit then I end up paying whole year commission of about 1500$. 

We want to rent it out.

I’ve heard from many (non-experts) that I’d need to stay for at least 5-7 years to avoid taking a significant financial hit, but that feels like a waking nightmare given how much this issue affects me.Financially, renting it out isn’t an easy solution either.

Maybe lease a mid term rental and rent out your unit, then look to buy another place.

I think this actually happens all over the world, but some landlords will increase their rent to the amount that the US government is willing to spend on rent in that location.

Have you thought about just renting a 4–5-bedroom home and house hack it.