It seems that the greatest factor in the quality of the deal is not the cost to acquire the property but the rent on the units. 

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

@Christopher Dolan ultimately that decision is up to you, but I would start by conducting a survey of all other rentals on the market and figure out where your rental fits in based on condition, quality and location. 

Even the nice ones are of lower quality and there is a stigma attached to them.Other than that, it's difficult to answer the question without knowing your market.

But to counter my own point, a lot of customer decision comes from location, your interior design choices, reputation and photo quality.

If the shed adds value compared to other homes of comparable location, quality, and size, then I would bump the rent $50 - $100 depending on the price of comparably storage units in the area.

With a commercial property, @David Beasley, the lender cares much more about he quality of the deal and your experience as an operator.

@John Redman the LL responsibility for the quality of drinking water varies by state.

To answer your question, yes, you can still find quality renters for bigger, nicer, more expensive homes.

This should be in any quality lease.