I would first ask myself a basic question about my personal goals: Do I want to continue to be a landlord or would I rather be free from those responsibilities? Do I want to manage this property myself, or should I use a property management company? Then, I would run a financial analysis on the situation and determine what renting vs selling would mean.
Some of the basic factors you want to consider are: What is the general feeling about market trends in the area of the home. If prices are still going down, how long would it take to get back to today's prices and what is predicted for the appreciation uptick of the market when it does start turning up after stabilization. What would the home sell for. What are rents in the area now? What are my monthly and annual carrying costs for keeping the home [mortgage, taxes, insurance, utilities, management fees, upkeep . . .] - Will the rents [with a vacancy factor] cover those?
You will also want to consider what money would need to go into the home to rent it again and what money would need to go into the home to prepare it for sale. How much do you owe on the home? If you sold, what would you net out of the home after closing costs? If you have a positive net, what would you do with the money? Can you make more by selling or renting. If you are not a financial analysis type, your CPA can probably help you out.
In summary, determine your personal goals and find out what the financial impact is of your choices.
Good Luck to you.