If you'd like any more specific information let me know.

Like what is the specific criteria that this deal and property has to meet?

@Michael Hayes you should discuss this with the S8 office handling the inspection.Most HAP contracts require a landlord to supply the fridge & stove, NOT the tenant.Violations of the HAP contract may lead to rent abatements and even banning of the landlord from S8 program (usually only with that specific Housing Agency).

At the end of occupation, we still were able to deduct fees from the deposit with receipts provided.

If you have a room that you use as an office, you probably can deduct that portion of your total square footage as a business expense.  

They have very good discussions about specific areas for many cities.

And again it will be state specific.

Do you have someone specific (handyman, contractor, inspector etc) do the move out inspection for you? 

This program is specifically designed to help finance the construction, acquisition, or rehabilitation of rental properties with multiple units.To qualify for a USDA multifamily loan, the property must meet certain eligibility requirements.

Just a reminder that even if he owes you the entire security deposit, you need to follow your state and local laws regarding notice to him showing itemized deductions from security deposit, any balance left or balance due to you, and proof you sent to last known address, I believe, even if it's your own unit, as he could have put a forwarding notice in with USPS.