By default the SM has 'DHCP Servers Below SM' blocked. ('disabled') Make sure it's enabled on the SM nearest the DHCP server - on 'Configuration->Network', bottom left in recent firmwares.
This feature is blocking DHCP answers through the SM? I was doing this at the switch before. When "Disabled" this will protect the WISP network from a client plugging his SM cable into the LAN side of his personal router and advertising a new and exciting DHCP subnet to the rest of the WISP?
In the example above he intended to run the DHCP server from another SM on the same AP. In this case you would only allow DHCP from the SM connected directly from the DHCP server. On the clients you would still block DHCP servers below to prevent a rogue DHCP server
True, I was not very clear. We run PtMP so the AP is configured normal but all my SM's at the customers have the feature checked to now allow DHCP back from the client into the wireless network.
I was doing this at my switch since our old non Cambium hardware did not have this feature. It's much better to do this right at the SM. I like it! Keep finding little gems in the firmware that I never had before...