SMLLC by default is treated as a disregarded entity and taxed as a sole prop on Schedule C or a rental on Schedule E.From the IRS Schedule E instructions:"In most cases, a single-member domestic LLC is not treated as a separate entity for federal income tax purposes.

The private investment space for non-accredited investors is traditionally governed through Regulation D as Ryan suggested, more specifically a 506b(b) private placement offering. 

I understand the federal rules and understand my tax liability should be zero.

Even with my tenants on Section 8 being great people, there are so many strings that come along with it, and particularly all you have to go through if you need to evict, that the guaranteed government rent check just is not worth it to me.On a positive, my tenants have found a new place and are expecting to relocate in a couple weeks, so we'll see how it goes!

Most CPAs only file federal and state income tax returns and are only licensed by one state. 

The government?

Contact the local government and find out the rules and regulations for short term/ vacation rentals.

You should probably add a line indicating the portion of rent the government/welfare office pays.Welfare tenants are generally on the lower end of the intelligence quotient,not particularly bright, and will likely only understand the portion of rent they actually pay.

There may be some exceptions for government funds for low level income.  

Always best not to invite further government regulation and interference into your business anyways.