Conventional rates will stay where they are throughout 2023, or maybe decrease slightly.

It'll just decrease your monthly cashflow and it'll sit around doing nothing.

I am in TX, and the market I am looking to buy in, the median home value has decreased by 3%. 

San Diego has recently seen a significant increase in values along with a decrease in inventory.

You might learn just as much, develop a relationship, and decrease the risk of your first one. 

Owning a future rental property for low down and decreasing my living expenses made house hacking a no brainer.

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.