My instinct tells me that housing geared towards students must be posted somewhere specific, and you'll have to search for it. 

Within a year my wife and I acquired four multi-families properties with a total of 20 units, and eventually another building to rent out (currently a bait and tackle shop) as well as an Ice House.

My tenants lease is up and they notified me that termites are in the house the same day they moved out.

You can look up Kate's House Foundation in Washington.

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

I'm looking at a low cost of living area that's plagued with a housing shortage. 

Purchase price: $110,000 Cash invested: $40,000 This beautiful 3 Bedroom and 1 and half Bathroom house is located in South Acres Estates subdivision.

It does not seem house hacking is possible in this market without renting out spare bed rooms (which is not an option).

It sounds like you're already in an excellent cashflow position with your current home, so if you can make a second primary work as a house hack, there are also ways to save. 

https://www.har.com/content/department/newsroom?pid=2072Houston Real Estate Highlights in April, 2024:
-Single-family home sales rose 9.2 percent year-over-year;-Days on Market (DOM) for single-family homes went from...