I'm doing the same thing in a similar scenario. I know I am cheaper than the rentals in the area, and I have the nicest place BUT...I then get my pick of the litter for renters. I only take those with a credit rating of 600+ and so far nobody's been below 650, and our current is over 700. A good deal of landlords don't realize it's cost effective to be a little bit cheaper and keep the place full with quality renters than it is to make an additional $100 a month. Mine has been vacant for 1.5 months total in 8 years. National average is 2 months empty out of 12, or at least it was when I started being a landlord. I also only do two year leases. And the current tenant is up for renewal this May, and rent will increase 8% and I'll still be below average for the area and they've already agreed to stay. Yes, unfortunately I still am paying the mortgage, but rent is 68% over that cost. Easily covers repairs and taxes.
Oh, and my whole point...rent is only going to go up for the next few years. There aren't enough homes for first time buyers and builders aren't catering to that market due to cost and building codes.