The answer is generally, it depends. From a pure net worth perspective, you can include the amount you have in the house.
However, when you are FI, do you plan to sell the rental house, invest the proceeds and live off that? Or are you planning on keeping the rental and living partially off the rent it gives you? Your answer should clarify for you whether you count the value of the property as part of your required number for retirement.
Frex, I don't count the value of my home in my net worth for FI because I plan to live in it, not sell it. But I also assume that I won't have to pay rent when I'm FI, so my required number is lower than it would be otherwise (I do have in that FI budget a line item for property taxes and average maintenance).