Rural tourism is now widely embraced and has given rural residents numerous recreational business opportunities to engage in tourism globally. Therefore, they are required to investigate even on a lesser scale. In this regard, a study was conducted to ascertain how locals view sustainable rural tourism development and how these perceptions vary across various demographic categories. The data was gathered from 300 randomly selected Dharbandoda Taluka, Goa, India residents and analyzed using descriptive statistics, Exploratory Factor Analysis (EFA), and Cluster Analysis. The EFA revealed the five main factors, namely, the public utility services factor, economic factors, social factors, cultural factors, and environmental factors. The factor-cluster analysis results identified the three main clusters: Socio-Environmental, Socio-Economic, and Socio-Cultural Focused. It is revealed that cluster 3 has more respondents who are female, ages between 18 to 25, single, and employed, and have favorable attitudes toward the sustainable development of rural tourism. The study concludes that the region will experience significant growth if more local and natural resources are utilized efficiently.