I’m in 3 markets and rent is decreasing about $100-$200/month in one of mine (Dallas).

After they see the full benefits (decreased living expenses, appreciation, debt pay down from your tenants, depreciation), then their mind will change :)What is the business plan transitioning from HH#1 to HH#2?

Maybe, the tariffs will decrease deficits and the need for federal borrowing.  

On top of that, I see a recession on the horizon, if that happens look for a decrease in housing prices not an increase.  2026 is just months away.  

Do you intend to decrease leverage in all states or just judicial ones?

Also, some people if they move in without an ESA pet and get certified for their pet to be an ESA animal you might have to decrease the pet fee and credit back the security deposit for the pet (I would check with an attorney on this last one; however, this was what we had to due with an attorney direction for a tenant that did this on one unit we manage). 

 $1200/month fall seems more than a seasonal decrease.  

Maybe you can increase the rate to decrease the points, if you feel they are high.

At peak times the complaints and reviews skew downward as a perception of value decreases, and inversely in low times.Its also the law of averages, do this long enough and at any scale you're not going to like everyone who comes through your door.

Will it increase the locals cost of living, will they appreciate & like you being there, does it contribute to the housing affordability issue if a home is used for this activity or should it have sat a little while longer & encounter a price decrease for a regular homebuyer to afford?