House hacking in an over-supply college town?

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Hi BP!

My spouse got a new job as a college professor and we had to move to a new state. We left behind a SFH that we are renting out to great tenants, which makes us about $160/month after all expenses. There is little equity built there at this point.

We want to try the duplex house hack at the new college town we arrived in, but there is some housing over-supply around the college. It is important for my spouse to live close to campus, but there is a "more desirable" area/school district about 15 minutes away (mostly SFHs, not duplexes). I've seen a few modest duplexes in/near campus with an empty unit, in the $250K to $335K range with 3 to 4 bedrooms each side. Each bedroom rents out for $425 to $500. 

We'd be using FHA if we buy. Does this sound like a dead end? If we live there for the required time under FHA and fully rent out the duplex when we move out, it may cash flow enough to make it worth it, but this over supply is killing my enthusiasm. Any thoughts?