How to Determine Rent in a Tiny Rural Town

[Brady Duxbury]

I just purchased a home in my very small town of 800 in South Dakota. The closest "Big Town" or Walmart is 45 minutes away, lots of times without another car on the road. I believe I purchased the house well and will be in for a maximum of $65,000 after flooring and HVAC including the purchase price of the home. I am having a very hard time figuring what rent I should charge. This is a 2 bedroom home and there are currently only 1 other rental on the market, which is a much older and less updated but bigger square footage home in which they are asking $700 per month. I make almost nothing at that price and am thinking about asking $800 but I don't have much data period supporting any price. Local verbal knowledge says somewhere around $500-$600, which would be money lost. I think the ARV of this home should be $90,000+ and better data supports this number. I want long term income but not sure how to proceed. Any advice out there that would help?

[Bryce Jamison]

Lesson learned, but this is something you should have done before buying a property.

With a population of 800 and only 1 other rental I'm hoping you find someone to rent it at all. I'd post it for $800 a month and see what happens. Spread the word about this rental as much as possible through social media and telling all your local friends and family. If no one rents it you may have to keep lowering it. I'd rather lose $50 or $100 a month compared to the entire mortgage. 

Are there other towns around with people that need a place to live? Can you live there? Can you sell it and 1031 into something else?