At what point does rent get too high for the neighborhood?

[Scott Seydor]

I'm looking at a large 5/1.5 in a working-class neighborhood.  I'm still very new at all of this, but recently purchased a similarly-sized house in the same neighborhood that came with tenants that just resigned a lease with me for $1,750.  With similar rent, the one I'm currently considering will cash flow.  Given the neighborhood (not a place with a bunch of young people looking to split a place, not a college town), my target audience will be families.  Maybe I'm overthinking this, but at what point does the cost of rent limit my renter pool with people opting to buy instead?  Would I be better off focusing on smaller places with broader marketability?