Hi! I went to W&M undergrad and was friends with a group of grad students in my department senior year, so hopefully I can be somewhat helpful Two of my friends lived in a 2 bed/1 bath that I think was ~450 each (so $900 total), but don't quote me on that (if you're coming from any sort of major city, Williamsburg is SO cheap in comparison). They lived in Lawson Apartments which I would recommend due to proximity to campus, groceries/Walgreens, etc, and the fact that it's not overrun by undergrads. I also knew some people who lived in the graduate housing their first year, and it's a good option. It's pretty standard quality, but in a nice area (right next to the law school) and accessible to the campus by bus/car.
I loved W&M, but Williamsburg is definitely not the most lively town. The touristy stuff is good to do at least during your first few weeks there, and there are a few bars right next to campus (but they can get pretty old). Richmond is only ~1 hr away and a really fun, artsy place to visit - I wish I had gone more often during undergrad. It'll definitely be helpful to have a car.