I think so. You should report 'yes' and you will receive a 1009-Sale of home to be included on next year's Federal 1040 tax return.
Because you used and owned the property as your principal residence for an aggregated two years out of the 5-year period ending on the date of sale, you have met the ownership and use tests for the exclusion of $250,000/$500,000.
If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. You qualify because you used and owned the property as your principal residence for an aggregated two years out of the 5-year period ending on the date of sale.
For rental property, the law has additional limits on the amount you may exclude. You may not exclude the part of your gain equal to any depreciation deduction allowed or allowable for periods after May 6, 1997. This means that you may need to recapture and report as income any depreciation deduction you have taken on the rental.
This IRS FAQ appears to address your situation.
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