I figured it out. Here are the steps:
Step 1. Enable DHCP on your network somehow. For this I changed my router from a DHCP forwarder to a DHCP server.
Step 2. Set up a bridge device on the "controller" server with your manual (static) address in /etc/network/interfaces.
# The loopback network interface
auto lo
iface lo inet loopback
# The primary network interface
auto br0
iface br0 inet static
address 192.168.199.5
netmask 255.255.255.0
gateway 192.168.199.1
dns-nameservers 192.168.199.2 192.168.199.1 192.168.1.1
dns-search home.spyderdyne.net
bridge-ifaces enp0s25
bridge-ports enp0s25
up ifconfig enp0s25 up
iface enp0s25 inet manual
Step 3. Record the hardware/MAC address of your new bridge device:
root@rack2-controller0:~# ifconfig br0
br0: flags=4163 mtu 1500
inet 192.168.199.5 netmask 255.255.255.0 broadcast 192.168.199.255
inet6 fe80::baae:edff:fe7f:fd70 prefixlen 64 scopeid 0x20
ether b8:ae:ed:7f:fd:70 txqueuelen 1000 (Ethernet)
RX packets 315449 bytes 353143957 (353.1 MB)
RX errors 0 dropped 0 overruns 0 frame 0
TX packets 217291 bytes 16267645 (16.2 MB)
TX errors 0 dropped 0 overruns 0 carrier 0 collisions 0
Step 4. Configure your DHCP server to assign that correct static IP address you want to assign to the bridge device:

Step 5. Install LXD:
root@rack2-controller0:~# lxd init
Name of the storage backend to use (dir or zfs) [default=zfs]:
Create a new ZFS pool (yes/no) [default=yes]?
Name of the new ZFS pool [default=lxd]:
Would you like to use an existing block device (yes/no) [default=no]? yes
Path to the existing block device: /dev/sda2
Would you like LXD to be available over the network (yes/no) [default=no]? yes
Address to bind LXD to (not including port) [default=all]:
Port to bind LXD to [default=8443]:
Trust password for new clients:
Again:
Would you like stale cached images to be updated automatically (yes/no) [default=yes]?
Would you like to create a new network bridge (yes/no) [default=yes]? no
LXD has been successfully configured.
Step 6. Edit you default LXD profile network config to include the bridge:
root@rack2-controller0:~# lxc profile edit default
### This is a yaml representation of the profile.
### Any line starting with a '# will be ignored.
###
### A profile consists of a set of configuration items followed by a set of
### devices.
###
### An example would look like:
### name: onenic
### config:
### raw.lxc: lxc.aa_profile=unconfined
### devices:
### eth0:
### nictype: bridged
### parent: lxdbr0
### type: nic
###
### Note that the name is shown but cannot be changed
name: default
config: {}
description: Default LXD profile
devices:
eth0:
nictype: bridged
parent: br0
Step 7. Launch a new container instance:
root@rack2-controller0:~# lxc launch ubuntu:yakkety rack2-maas-rack0
Creating rack2-maas-rack0
Retrieving image: 100%
Starting rack2-maas-rack0
root@rack2-controller0:~# lxc list
+------------------+---------+------+------+------------+-----------+
| NAME | STATE | IPV4 | IPV6 | TYPE | SNAPSHOTS |
+------------------+---------+------+------+------------+-----------+
| rack2-maas-rack0 | RUNNING | | | PERSISTENT | 0 |
+------------------+---------+------+------+------------+-----------+
Step 8. Set the new container's network settings to the desired static address:
root@rack2-maas-rack0:~# cat /etc/network/interfaces
# This file describes the network interfaces available on your system
# and how to activate them. For more information, see interfaces(5).
# The loopback network interface
auto lo
iface lo inet loopback
# Source interfaces
# Please check /etc/network/interfaces.d before changing this file
# as interfaces may have been defined in /etc/network/interfaces.d
# See LP: #1262951
#source /etc/network/interfaces.d/*.cfg
auto eth0
iface eth0 inet static
address 192.168.199.6
netmask 255.255.255.0
gateway 192.168.199.1
dns-nameservers 192.168.199.1 192.168.1.1 8.8.8.8
Step 9. Install maas-rack-controller:
apt install -y maas-rack-controller
Step 10. Add the new Rack controller to your region controller:
root@rack2-maas-rack0:~# maas-rack register --url=http://192.168.199.2/5240/MAAS --secret=e613b300be30450c07a724ac77819aae
Step 11. Wait for the new rack controller to sync with the rest of the region:

Step 12. Disable DHCP on your OTHER DHCP server:

Step 13. Configure MaaS DHCP:

Step 14: Add DHCP reservations if needed.

Step 15. Manually configure hosts by MAC address to set static addresses via DHCP, or at least preserve their addresses from future allocation.
I will have to wait for the new rack controller to finish it''s sync operations before I can tell for sure that rack DHCP is working, but at least I have manual addresses up and running, and should be able to run the DHCP server now.