I don't know where the reference to multi-family housing is coming from, as it has not been referred to as such by @nbadhe2020 Per the IRS, in order for a structure to be considered multi-family, it must contain 2 or more units where each unit is an accommodation containing separate and complete facilities for living, sleeping, eating, cooking and sanitation. An example would be an apartment containing a living area, sleeping area, bathing and sanitation facilities, and cooking facilities equipped with a cooking range, refrigerator, and sink, all of which are separate and distinct from other units.
https://www.irs.gov/tax-exempt-bonds/qualified-residential-rental-property-multifamily-housing-bonds
I entered rent $6000/yr and it is showing depreciation as 9720 which doesn't make sense.
What you received for rent has absolutely nothing to do with the depreciation in any way, shape, form or fashion. Depreciation is based on the cost basis of the structure (or percentage of the structure in your case) that is classified as residential rental rental estate. Period. So it's highly likely that your depreciation of $9.,720 is spot on.
Now You've already told me you rent out 100 sq ft of a house that has 3127 sq ft of floor space. So that's 3.19% of the total floor space. So to confirm your numbers are in fact correct, on what date did you place the room "in service" as a rental? Also need to know the cost basis of the structure. Do not include the cost basis of the land, as land is never depreciated.
