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It depends on your daughter's total income. From what you described, your daughter will most likely have no taxable liability or very little one so the she will not be in higher than 10% tax bracket. The taxes on $900 would be $90.
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90x12 = 1080. That would be tax amount on 10800 income (900x12), assuming the entire amount would be taxable in 10% tax bracket. What is her total income and what's her filing status?
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The more she makes, the more expensive it becomes for her to claim the additional rental income.
Sorry, I accidentally deleted what I wrote before. So here's it again.
With 70K income she is in 25% tax bracket which means, the additional 10800 in rental income is costing her $2,700 in taxes. Since this is a rental income, she can reduce it by certain deductions, like property tax or insurance. Assuming 25% in deductions, you will owe her about $2000 for the additional income claimed on her tax return.