Needless to say, when you don't intend to rent your home out as a business, it's equally unacceptable if someone decides to use it as one.
Edit: I... just realized how Freudian my analogy of "discharging firearms into the air" is. I really should get more sleep.
So... time to rethink your position; I'd be absolutely furious in this guy's position, and "The risk is incredibly low," would frankly piss me off even more. Your argument is about as weak as someone smoking a ton of pot in someone's house, then bitching about prohibition. I'm against prohibition, and also against you stinking up my house.
If you try to pigeonhole all of the people you disagree with, you will turn into a caricature no less absurd than the ones you're trying to create.
Plenty of people who think that prostitution should be legal still disapprove of it, by the way.