People should rent what they can afford and need. Some people need the house with all its space, some only need an apartment.

The big thing is people shouldn’t be spending 50% of their monthly income on rent. It doesn’t help them, their family, or you. Likely, eventually, they’ll have trouble paying, you’ll have to evict them, their lives will be disrupted, their families lives will be disrupted, and you’ll have to spend time evicting them and finding a new tenant else you’re not making money.