You can enter your Rental Income and Expenses in the Rental section in TurboTax, to be reported on Schedule E. However, since the IRS considers rentals at below-market value to be not intended for profit, you can only deduct expenses up to the income amount.
TurboTax will ask you if you rented at FMV as you enter your rental property info.
Another option would be to report the rental income as Miscellaneous Income, and deduct the Property Tax on Schedule A.
Here's more discussion on Below Market Rentals.
Click this link for info on Fair Market Rent from HUD.
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