In the Seattle-area there was recently a story about some people doing exactly that with an affordable condo program:
https://www.king5.com/article/news/more-owners-of-affordable...And anecdotally I had to listen to a guy brag about qualifying for an income-reduced rental for a Seattle apartment complex by not reporting his tips at his waiting job.
So it definitely does happen, especially in tight markets where having a cheap place can bring big AirBnN money. But there are many people, especially the elderly and those with disabilities who benefit greatly from these same places available, so while I'm angered about those who abuse the system and don't think we can ignore those issues, I don't think income restricted housing should be abandoned wholesale. The penalties for abusing it should be extremely high though.