Massive Demand

[David Moore]

We have a home available for rent in a Southern, MN town where home prices have been appreciating decently.  I've notice rents going up on 2 bedroom homes from $650.00 a month to about $750.00 a month.  Some homes that are 3 bedroom are being advertised for up to $950.00 a month.  I know other investors with 3 bedroom homes in the same town who are keeping their rents around $750.00 a month.  

I have a 3 bedroom home in a nice neighborhood.  I placed ads three days ago for my home, located in the town (Albert Lea, MN).  i have been absolutely inundated with calls  and contacts.  i think I've had 50 contacts in the last three days.  I'm getting dizzy responding to all these inquiries.

Is market demand this severe an indication I set my rent too low, and if yes, should I raise it now just to thin out some of the calls?  How would some of you handle the same situation?  Have any of you encountered this?