Some base it only on property and dscr others take fico and liquidity.... and some take all.

I simply stated a fact based on my experience.

Following - I'm based in California

A similar situation would be like when New Orleans flooded and people were displaced in mass , or another natural disaster .

A fix and flip is based on your credit, assets and most importantly the property itself. 

Based on cursory reading looks like your purchase might qualify for USDA B&I.

Based on what I have heard there are two tests we have to pass in order to be qualified as a contractor.

I am also going to required annual increases in rent based on the CPI index, among a few other things.Does anyone have experience with this?

You basically need to assign a value to all of the personal property (furniture, appliances, TVs, kitchen supplies, etc) inside the STR and they'll send you a tax bill based on the total. 

I realize that cost is not at all based on the value of the property but  $2,000 seems like a lot of money for just 1 acre of vacant land.