•Are the tax benefits of renting worth it in a situation like mine?

Not USD dependent, provides diversification.I have stated many times I like nasty properties or situations.  

With the instability of the current economic situation I see a lot of opportunity.

I don’t know your living situation or if there are any nice 2-4 unit buildings in the area you’re moving to.

But there's advantages for either way depending on your situation, plan, and goals.The 70% rule is just a guideline.

What is the best way to manage this situation before the inspection happens?  

You need to take a look at your financial situation.

To be fair, I've encountered situations where the Section 8 rent received was higher than what cash paying tenants were paying.

I’m seeking guidance on how best to approach this situation and would appreciate your thoughts on what you would do if you were in my shoes.Here are the details: My current home loan is $242,000, and the property is estimated to be worth approximately $420,000 (± $5,000).

Hey John, Happy to hop on a call to learn more about the situation.