If
you rent your property below fair market value, the IRS considers that
you do not rent your property to make a profit. In this case, you can
deduct your
rental expenses only up to the amount of your rental income. You cannot
deduct a loss or carry forward to the next year any rental expenses that
are more than your rental income for the year.
Mortgage interest and property taxes paid are claimed in Schedule A as for your residence.
Please refer to this IRS document , especially the section on Not Renting for Profit on page 16
on how to report income and expenses:
https://www.irs.gov/pub/irs-pdf/p527.pdf
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