Unless something material has changed with the condition of the property or the quality of the neighborhood, there is absolutely no reason to lower the rent. 

My family member contacted me concerned about this matter (since I tell everyone that I am a REI and currently working to get my real estate license) however I have yet to encounter this scenario in my studies or in real life.

Loan balance is $204K and the house is worth $220K fixed up however the house is in good condition and move in ready and has a VA loan in place.

I currently have a property under contract and it's in relatively good condition minus a few things that may need to be addressed which isn't more than $5k worth of work IF that.

I am not expecting to make any substantial life changes by owning the townhouse.

But at least hear her out first, it may be something that happened 20 years ago and she's lived a good life since. 

., Section 8 doesn't depend on the neighborhood or condition of the property.

With the property in its current condition, the appraised value is probably around $500k. 

One also need to focus on appreciation as some areas have close to below inflation rate for sometime.....The condition of newer properties will reduce the repairs/maintenance cost to a great degree.

I would imagine the extra service life would justify the cost increase over carpet.