But the reality is most people rent these spaces, a lot of homeowners depend on this income. 

If in doubt about either of those 2 items then I believe an accountability group may be a better option.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

The reason for the lengthy time is he has given me the impression he relies on this income to sustain he and his wife.

Build experience and adjust.Some hosts use cleaning fees as a source of income.

The downside of selling will also be that our expenses will go up by buying a new home as well, and we aren't very high income earners (we both make a little over $100k/year combined)We also own a few small rental properties in smaller towns nearby in TX, so the rental game isn't new to us!

I’m looking for guaranteed income using Section 8.

Yes, there may be a small exposure to floating rate loans, but these are hedged with swaps, not caps, and account for generally less than 20% of the overall debt attributed to assets.  

One of our investors utilizes nightly rental income in lieu of market rent on appraisal. 

I am remote (living in Reno, NV) and will be handling all accounting/finances.