Large lot, small house

[Bienes Raices]

I've seen some posters on this site mention that they buy mostly "for lot size".

Does this logic apply to rentals? There are many houses in this area that were built shortly after WWII where the house is small (less than 1000 square feet) but the yard is quite large.

(My method so far has been to go strictly by the 50% rule and the amount of monthly income I can be sure to get from rent.)