@MJ Sally ,
Your questions & my answers in Italics.
1) My wife owns a rental property in a foreign country. The property is not held under a company, LLC, or any other entity—it is simply her former residence that she moved out of, and it was rented out for a few months. Does she need to report this rental property on Form 8938?
Real-Estate is not a specified financial interest item. This because the rental income will be reported on Schedule-E of the taxpayer's form 1040. Also disposition will be reported on form 4797.
2) My wife has 10+ bank accounts in a foreign country. Does she need to list each individual account on Form 8938? If yes, does she also need to report the interest accrued for each account separately?
If the accounts are under one main account or generally at one Financial Institution, then generally one can enter one line and total the underlying accounts. However, even in the same institution there are different types of accounts ( that operate independently ) then perhaps one should use multiple entries. What the IRS / Form is trying to document / recognize all the lumps of specified foreign financial interests you have.
My reference here is the following --->
Instructions for Form 8938 (Rev. November 2021)
Also see page 9 of this doc.
Does this help ?
