Stay in over-saturated market or cash out?

[Joe A.]

I have a 3/2 SFR (mortgage free) in a college town (90 minutes away from where I live) that is over-saturated with rentals. In the last few years, large apartment complexes have been sprouting up left and right. Rents have dropped by about 10% recently. In the same time period, the house has appreciated in value by close to 20%. The house no longer meets the 1% rule.

So, should I keep it, or sell it and buy closer to where I live in a better market for rentals?