I'm a current Harvard student and I have not paid more than $750/month in rent because I chose to live a bit further out. My first year I lived in Watertown (3 bed, 1 bath) in an apartment I found on Craigslist and this year I live in Medford with two friends (3 bed, 1 bath). In both cases, the commute is a bit longer because I'm not on the T (45 mins), but I saved so much money in rent that it was worth it for me. Especially if you bike, I would highly recommend looking outside of Cambridge/Somerville. Also, your friend is right that parking around Harvard is a nightmare, but if you live further out it isn't too much of a hassle. Watertown has (for the most part) unrestricted street parking, and my apartment in Medford has a driveway (and many apartments around Davis Square do as well). I never drive to class, but having a car is great for getting around to the grocery store and other places since I don't live near the T. Just something to keep in mind. You can also join the Harvard Grad Market page on Facebook to see Harvard people posting room openings.