Only 1 Rental Comp in This Market, What Gives?

[Kellen Driscoll]

Hey BP,

I received a deal on a 10-unit apartment building from a broker. They stated the current rents were at an average of $480, but the market rent was $650 for 1 bedroom units in this area. I tried searching rent-o-meter for rental comps, but there were so few that it did not populate anything. I tried looking up the town in Zillow next; the result was (1) 2 bedroom house listed for rent at $750. 

My question is how do you analyze a deal in an area with little or no rental comps and what is the underlying reason for the lack of comps?

Local City Data:

Median Home Price: $99,500

Median Income: $42,377

Population: $5,938

Unemployment: 4%