The situation you describe is one that many other prospective sellers are facing, particularly those who purchased their homes within the last five years. It is discouraging, I'm sure.
If you rent, it would be advisable to hire a local property manager who will be able to respond to emergencies or problems that you will not be able to deal with, from 3000 miles away. So you should consider that expense, as you are making your decision.
If you then decide to sell after 2-4 years of renting, you will undoubtedly have issues of additional "wear and tear" that will necessitate additional expenses, such as those for new carpeting, repainting, upgrading appliances, etc. So that's something to consider, too.
None of us has a crystal ball that can foretell how long it will take for home prices in this area to rebound. You could find that even after renting for 2-4 years, you will be no farther ahead than you would be if you simply sold today. By doing so, you'll eliminate all expenses (taxes, insurance, maintenance) associated with your Milford home, and be able to move forward into your new life.
Your Country Property Specialist