Should I sell or rent out my house?

My wife and I just moved to a new house last July as she was starting grad school. We were intending to stay in the house for 2-3 years while she finished. However, she now has an unforeseen research gig in the city (1.5-2 hours away with traffic) that she will need to attend 3 times a week from now until she graduates. I also commute to the city about that often and now it's making more sense that we relocate back into town so we don't spend 12+ hours commuting every week each.

We're trying to figure out what we should do as far as selling the house or renting it out. We have made a lot of friends here that are students that would be willing to rent it (house has 4 bedrooms), but on the flip side an elementary school has been built walking distance from our house and is set to open in the next few months. This is our first house so we're not 100% sure what to do.

I've checked various real estate sites and the majority indicate that the value has gone up about 4-5k, but I'd have to get it appraised to be sure. How will us selling the house this soon after buying it affect the sale? Any advice? What sort of considerations should we be aware of?

EDIT: Thank you everyone who responded! I really appreciate the advice!