I currently live in Madison, WI as a non-student and LOVE IT HERE! It is a great town. There is a lot to do, but it is not too crowded. Everyone here is super nice and there are lots of great neighborhoods and restaurants.
The Willy St/Jenifer St neighborhood is great to live in, although anywhere on the isthmus is nice. I lived on Brearly St last year and loved it. Lots of restaurants to walk to, downtown, and the willy st coop. This year I live on E Dayton St. (still on the isthmus). I am far enough away from the capitol that this is a quiet neighborhood- mostly families and grads. The Atwood neighborhood is really nice too. I love Madison and would be willing to answer any questions. I know it can be kinda overwhelming moving somewhere you've never been. As for reasonable price...I think you can pretty easily find a nice one bedroom for 700-800. My apt last year was 690 which included heat. Anything below 600 is probably a grungier apartment, particularly if you're looking at apts on the isthmus where prices are higher.