Does the fact that a Condo is a rental unit affect the values of the other condos?

It may.

Lenders generally will not grant mortgages to potential buyers when the number of rentals in an community is too high. The number varies from 30% to 49%, above which, there will be no loan or refinance.

As well, some insurers will not insure communities where the rental number is 'too high'.

When there are more than 49% of the units rented, owners can probably only sell to all-cash buyers.