With interest rates, home prices, and rent prices in my market to hit that goal of $500 per month I am looking at purchasing a house around $200K, putting down $100K, and renting it out for around $1,500 per month. 

One has a 10.25% rate and I don't plan to sell for awhile. 

We went back to the appraiser for re-evaluation and they even exceeded the appraised rent rates we needed ($8500/month).

Condotels are more difficult to get financed and typically come with higher interest rates. 

Back in 2015/2016 you could find a 8% cap rate then in 2017/2018 it was a 7% and 2019/2020 it was 6% and the only reason it has been steady is because rents have seen increases along with pricesSo I tell my clients they have a few options:Buy now on cap rate and refi when rates go down. 

I work for an automotive shop and get paid flat rate so my pay fluctuates.

You can list your MTR on Furnished Finder or Zillow as a 30 day+ stay, and see if the monthly rate drives demand in your market.

The ARV for the property or the rental rates once done if you plan to keep the property.

I'm wondering how people go about leasing their section 8 properties when max rent allowance for a zip code is significantly higher than market-rate (non-subsidized).

If I go to rent it out at some point that's a negative cash flow of nearly $1400 assuming rents and rates stay the same.