RPI is a great school. It has a good rep in the area and in some places beyond. The new biotech facility is great from what I hear. I went there for undergrad. On campus has specific grad housing that is slightly removed from most undergrad housing. Not the nicest buildings, but you can get by just fine. Its a standard RPI "apartment" that has 2-3 upstairs bedrooms that are tiny, a small living room, 1 bath, and a kitchen.They will likely be larger than what you would get for a local apartment for under $650 per month. Most of my friends (know 3 that got their PhD there) lived off campus. If you have a car then Latham, Greenbush, Colonie, and some other areas are great to live in. I lived in Clifton Park, but that was a 20 - 40 min commute depending on traffic. You can find inexpensive living in Troy, but the area has changed over the past few years. They are trying to rebuild, but with the economic downturn the city isn't in great shape. Some areas are better than others, but I haven't lived in the city for over 9 years. There are busses that run from RPI to areas of interest, but they are a lengthy commute. I'd suggest a car because if you are looking for any entertainment you'll likely have to leave the area. Troy is near Albany (about 15min car ride, or double that by bus). CDTA, the bus company up here, is awful with scheduling and route changes. It is difficult to get used to using the system as there are no schedules posted at bus stops. I usually suggest living on campus because it can tend to be less expensive with dining plans, utilities, internet ect. Up here Time Warner Cable is your only viable option for TV/Internet. They run about $110 per month with a combined package (usually $90 per month your first year). Winters are long and it gets cold so heat can get pricey. Especially if you are in Troy where the buildings are old and have poor heating options. 2 years ago for a 600 sqft apartment with poor electrical heating was running over $150 per month. I paid 1/4 that in a 1200 sqft with gas heat and better insulation this year. Additionally, summers can get very hot which makes the need for A/C higher. It wasn't an issue until the last 2 years where we had weeks straight with 90 degree+ temperatures. I don't know what your stipend is, or their current housing costs, so I cannot comment on that. If you don't mind poor heat, lack of windows, and no A/C then there is a decent studio apt complex on 5th ave that is only $400 per month. A friend lives there, but I found it to be to cramped.
Troy is relatively safe, but there are some areas to avoid. If you stay North of 5th Ave you will be alright. Brunswick isn't bad and that is north of Troy. Consider Latham if you think you can afford it. Avoid Valley View apts or anything that company owns. Outside of that its a 5-10 min drive to campus and a generally nice area. Good luck at RPI!