Unit Count vs. Cash Flow

[Mark Douglas]

I'm in a pretty competitive market (Nashville, TN) and am beginning to broaden my search into secondary and tertiary markets to look for properties, at the sacrifice of NOI. The further away from the MSA, the lower the rents are.

I know that at the end of the day, cash flow is extremely important.  I'm just wondering, from an occupancy rate standpoint, is there not a benefit to having a higher unit count?

Example:

A 4plex in the city rents for $925/mo/unit, bringing a gross of $3,700/mo.  One vacancy would temporarily reduce the gross income to $2,775/mo.  Some factors to consider are (likely) shorter vacancy time, larger applicant pool, etc.

A 8plex in a further out (borderline rural) area might rent for $500/mo/unit, bringing in $4,000/mo.  Even two vacancies would leave the gross income at $3,000/mo.  Factors here might be a longer vacancy, lower applicant pool, etc.

I know there isn't a 'one size fits all' answer here, but which side to you tend to fall on: higher rents, or higher units?