If you materially participate in the rental business, the rental income is Qualified Business Income and you should answer Yes.

Thank you for the response.  Can you elaborate on materially participate?  I have a property manager managing the home, but I make the decisions on repairs and more?  

You materially participate if you choose the tenant even with the help of the property manager and make decisions on the property.

Material Participation is NOT the determining factor for QBI.  The determining factor fro QBI is if the rental rises to the level or a "Trade or Business".

Minh's comment about choosing a tenant is for "actively participate", NOT Materially Participate (which is different).

Correct, it makes sense. So this means I participate.  So how does TurboTax determine if the rental rises to the level of a "Trade or Business"?

TurboTax does not make that determination, you do.  There should be a "learn more" link somewhere in there that talks about the 250 hour "Safe Harbor" requirements.

It can be complicated and be a "gray area", which is why many in this situation go to tax professionals.