What is a fair amount of interest to pay him?  

I looked average Fair Market rental rates for section 8 and used the average for a 3 bedroom home. 

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

We were pretty far along on eviction proceedings in the courts as well and I think having that eviction alternative looming as a likely outcome fairly soon encouraged them to accept it.

How do I structure this deal so it's fair and equitable? 

Talk to them about splitting the difference or whatever you both feel is fair.

In addition, we are currently in an extremely supply-constrained market that I would imagine won't normalize for a year or so, driving prices up to a bidding-war scenario.So, questions loom:-  Your guess on impact of all properties in a rising rate environment, say 2% increase over the next two years.-  Your opinion on whether to hold or sell, even given the tax/commission cost of selling against a bidding war.Cheers.

Here's the link to the Fair Market Rents according to HUD for your area.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Be firm, but fair and ask yourself if you think the tenant would do the same if the situation was reversed (for most the answer is no).