And when I specifically asked if this tax valuation would guarantee me a lot split, they said it would not, and that is a city decision. 

@Larry Nielsen I like Jonathan's suggestion, but I think an important decision for you is what is your goal.

Considering paying but there doesn't seem to be any guarantee or data to help me make the decision.

Before making your final decision, I'd suggest running the numbers both ways - calculate your tax liability versus the potential long-term impact of accepting those unfavorable terms you mentioned.

You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

I would work with/or establish a team that knows that market well so that I could make a good business decision.

At the end of the day this is a financial decision so if your reasoning not to invest out of state is a financial one then don't do it.

I have zero experience with section 8 tenants and have done as much research as possible to make my decision. just wanted to see what opinions you all may have or hear about your experience with section 8 tenants.Thank you in advance for your input!

Quote from @Jaycee Greene: Much of that decision is based on what you want to get in $ profit or % return.

The DM (decision maker) is the best person to be in touch with then the next in line maybe the person now she is closest with..