Yeah, close to campus + walking distance groceries can be hard to find near UMN... but it totally depends on your definition of walking distance. As for studio/1BR for <800, that can be feasible. But depending on how far or close you want to live to campus, you might have to compromise with room size, condition, and so on. I am thinking about getting my own room and bath in a house with others, and the cost averages around 500. Not bad I think.
I have another question to those who are currently living or have lived around campus (esp St Paul area) - can a RWD (I have a mustang, regular tires) manage to take you to the groceries during the winter? Of course I won't drive during a blizzard, but driving to groceries and occasional ride outs is a must. How good is snow cleaning (after a snowfall) in the streets in residential/student areas in St Paul? And in the groceries?
