Here's steps for Box 3 Income on rental 1099-Misc reported by Expert @PatriciaV:
"The income reported on Form 1099-MISC Box 3 is Other Income, which the IRS views as unrelated to your rental activity. Also, Schedule E has no "Other Income" category available.
First, don't include Box 3 for this 1099-MISC under Rental Income.
Second, enter another 1099-MISC with the same payer information under Wages & Income >> 1099-MISC and Other Common Income >> Income from Form 1099-MISC. For this entry, report only Box 3, and this amount will appear on Form 1040, Line 21 with the description "Other Income."
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