I've seen local fair housing authorities send in "shoppers" that match the same criteria as denied applicants, excepting one or two changes, to see if any discrimination is taking place.

The property manager is just a facilitator, even when S/he has authority to act independently.

I have been considering house hacking but my impression of the Austin area is that the market is expensive enough to make it difficult to find deals, let alone for someone new to this to recognize and jump on deals.

If your section 8 housing authority is the same as what we have here in Cincinnati, my guess is you can ask for rent increase once a year (if he missed the deadline, he might need to wait until next year).

I actually recognized an opportunity once in a lifetime and jumped in head first.

We also have a clause in our lease (as per FL law) that allows us to dispose of personal belongings without having to store items if tenant passes away and no one authorized by the court claims them or makes arrangements in required time frame.

If for some reason the authorities catch you renting out the units illegally you will have to evict the tenants, pay fines through the city, and worse case scenario, if anything urgent actually did happen inside your home with your illegal tenants, your insurance will be null and void of all liability. 

I could type a big long guide but I think Kathy Fettke has done a pretty thorough job here.10 Ways To Protect Yourself from Dangerous Turn-key Property CompaniesThe main thing to keep in mind is track record, how long have they been in business.Also, recognize that most property managers (even the good ones) eventually go a little bit crazy.

Using your local building enforcement authority would be a great place to start. 

The Housing Authority will likely ask you to put tenants in new leases.