In my experience, I have never seen rents decrease in SFH.

There is also no guarantee that section 8 will increase the rental rate-  sometimes they may even decrease. 

Finally, though cape coral (and most of florida) rents have decreased in recent months, historically rents have increased by 1-3% per year.If I were in your shoes, unless I found a screaming deal elsewhere and I am happy with the current tenant in the home, I'd stay put. 

In theory, it is an excellent strategy because you are able to maintain your privacy while someone helps pay down your mortgage and decrease your living expenses.

@Kyle Andrade all you have to know is that your pool of buyers is going to decrease drastically for fire damage deals so take that into account and have bigger spreads

YoY is flat.Rentals - Availability by MonthThe number of homes for rent continued to drop rapidly, indicating a decreasing supply.Rentals - Median Time to RentThe median time to rent is 20 days, unchanged from May.

It might raise suspicions and decrease the chances of your mailings being opened or responded to.

My overall expenses would decrease from my current SFH, but I want to make sure this is something that will be worthwhile to hold and rent out in the future.Any feedback on whether or not to move forward? 

While Fannie Mae predicts price decreases in the next year (see below), we really won't know until we get there.

However, as rents have risen, I believe that I should be fine, even in the event of a 20% rent decrease in the neighborhoods with my rentals.As for the future, things may well flatten out.