There are infinite mediocre apartments in Chapel Hill, so don't worry about not having a place to stay. The recommendations above are pretty good, but if you can swing it, I'd try to get a duplex or something through the smaller property companies. There are a surprising number of small houses etc. that can be found for very similar prices as apartments, even within walking distance to campus.
Also- get a place North of 15-501... south Carrboro (the Villages, Rock Creek, etc) has no bike path to town and vastly more expensive electric bills for some reason.