Investment Dilemma: High Rent vs. Mortgage Payments in a City with Lower Wages

[Adam Sha]

I'm considering purchasing a property in a city where the average household income is around $50k per year, and houses are selling for $250k to $300k. Most rents in the area are around $1500 - $2,000 per month. However, the property I'm looking at is larger than other houses, and to make it a viable investment, I'd need to rent it out for about $2,600 per month.

My concern is that anyone renting this property could instead take out a mortgage on the same house, with monthly payments exceeding $2,000. Given that the local wages are relatively low, does this mean the property isn't a good investment? Would renters be willing to pay $2,600 a month, or would they be more inclined to purchase a home instead?

I would really appreciate some insights into how this formula works and whether this investment is feasible. Thanks in advance for your advice!