So I’m that one kid every one of my class mates and teachers think I’m getting into HYPS. Although I am hoping to try to get into these schools, I like everyone else have no idea if I can even get in. I’m barely a sophomore and people see me as one of the “smarts” of the whole school. My school has pretty bad underperforming students and it is in a rural area and in a small town so this is kind my identity at my school and around the area. No one in my school district has ever made it to HYPS. Could this be a bad thing and should I quickly change this reputation of mine before senior year or is it too late to change this?
In the future, don’t discuss your college choices with others. It’s none of their business. When they bring it up, tell them you’ll let them know when you’ve made your decision. 
I think having this kind of identity is stressful, and will become more so. Just keep doing well in school and try not to discuss any of your college choices.
Why change your reputation? You are a smart student and they are recognizing that. As others have said don’t get stressed by the rep but continue to do what you are doing. You are so young. HYPS could definitely be in your future. Take the most rigorous classes you can, participate in activities you enjoy, study hard and take all the required classes of the HYPS schools that interest you, Good luck!
It can be a lot of pressure to keep up with that reputation, although it is a good thing that people see you as a smart person with potential. Run your own race, though. Where you apply and attend college is no ones business except for you and your parents.
Tell everyone that your dream school is your local state flagship - even if it’s not. Every time it comes up, say how much you love your state college and that’s where you want to go. Don’t talk about private schools. Focus on doing well and having fun in high school.
[Edit] Based on your previous threads, looks like YOU are the one that is really focused on top schools (even as a freshman). Please stop. Just do well, focus on learning, and stop thinking about colleges. UNC is a fabulous state college, tell yourself (over and over) that it would be great to go there. Believe it. Then senior year you can apply to a bunch of schools and see what your options are, in the end.
I agree with @suzyQ7. A lot can happen in three years. Enjoy high school!
Smile and thank them for the compliment. But move on to another topic. They don’t know. They can’t predict. Not even if you were a senior now.
Be vague…'Wouldn’t that be nice" or "That would be cool, but the honors Program at State U is cool too. " .
As it gets closer, “Yeah I might be the top prospect for Princeton in this HS, but there are more than 36,000 high schools in the US that also have top prospects. We will see!”