Yes, tick the box.
Turn the question around. What makes up inflation, and what would cause you to need more money in retirement? Food, energy, transportation, and housing. Housing costs are a big component of spending, and therefore the changes in them make up inflation.
The way you get in trouble is if your personal housing costs and related inflation experience is uncorrelated to where your rental properties are. If you have rentals in a stagnant or declining area (Detroit, Florida in a bust cycle) and are living in Silicon Valley in a boom there, your expenses will be going up way faster than your rental income.
But, for cFIREsim's purposes, yes, tick the box.