Purpose: clarification of the concept “human potential of rural areas”, development of the methodology for assessing the human potential of rural areas based on the study of constraining development factors. Materials and methods: a monographic method to highlight the development potentials and clarify the concept of “human potential”, an economic and statistical method to calculate the consolidated human potential index, as well as analysis and synthesis methods have been used. Results: the dynamic transformation of the market economy requires not only the availability of modern technologies, but also the provision of development with qualified personnel. Human potential accumulates the capabilities of managerial and labor decisions in accordance with the existing external conditions. Rural areas have a certain labor “reserve” that can be determined through human potential. An analysis of the potential of the territory and the institutional environment determines the development opportunities, and the assessment makes it possible to determine the need to attract or constraint labor resources. The development of human potential takes place under the influence of the external environment, and the formation of favorable conditions is an important task of regional development. There are many concepts for assessing human potential, but a holistic concept of criteria has not been formed. The index assessment of the factors restraining development makes it possible to determine the potential of the territory. The following were selected as the main estimated indicators reflecting the main constraining factors: employment of population, wages of population, coverage of children with preschool education, available social space per person, the share of the working-age population, life expectancy, the share of private enterprises in the total number of operating enterprises. Comparison of indicators of rural areas is carried out with data on the city, which makes it possible to identify the optimal criteria for human potential. Conclusions: the proposed methodology for assessing human potential based on indices makes it possible to monitor and quickly respond to the needs of a changing external environment. Based on the methodology for assessing the composite human potential index, problems and constraints on development were identified. The rural area lags behind in almost all indicators from the urban one, which requires solving the problems of creating a favorable environment for the life and work of the able-bodied rural population.