However, a full or partial gift means you inherit their $33K cost basis, potentially increasing your capital gains taxes when you sell in the future.

I'd have to do some research on the local market to know if this would meaningfully increase the value and the appeal as a rental in the long-term.

Long term interest rates should continue to increase.  

Quote from @Drago Stanimirovic: Benjamin,You're on the right track by focusing on macro trends like job growth and population increases, these can justify investments even if the 1% rule isn't met.

Recently I got a huge increase also.

With the increase in prices and competition over the last few years, these figures were so divorced from reality that these people now typically advertise 8% to 10% at the most, which, unsurprisingly, is still higher than reality.

The home in mn over 20 yrs averaged 2.8% increase per year.

The deduction is optimized as values increase and can potentially offset the entire net investment (including down payment) for high wage earners.

However, some amenities consistently deliver high value because they attract more bookings, increase nightly rates, or result in better guest reviews.

How do SFHs fare in competition with these rentals as supply increases?