Not sure if any of this is redundant, but I thought I'd offer my thoughts about my adopted hometown.
I have lived in Bloomington for six of the past seven years, all attending IU here. The campus is gorgeous April thru October, but you better be prepared for the gross winter. You won't be thinking about all the beauty around you while you're playing hopscotch over rain puddles and ice patches during our too-typical Midwest seasons.
Landlords here can be awful, but there are many that are wonderful. Here are a few thoughts I will throw out there:
I lived with Rara Avis for two years... it's a father-son team that works their butts off on their properties year-round. Super affordable & crazy friendly... if you don't stop them, they'll chat with you for more than 30 minutes. I also lived with Campus Walk for two years, and they are pretty good. They have tons of property in great locations, charge reasonable rent (usually multiple utilities included for <$500/mo.), offer grad student discounts, and have an active full-time maintenance staff. [Do not deal with Terra Trace (14th & Dunn); they are affiliated with Campus Walk thru CRE, but they are terrible.]
I lived with Elkins for one year, and they were not good. They never respond to maintenance requests (busted window locks, inoperable internet, doors falling apart) and then charge you for the repairs from your security deposit on move out. Do not live with Sunshine, nor the Norbu family (married to the Dalai Lama, who has a large presence here in Bloomington). They are slumlords.
The best place to live for quiet and affordable living is south of campus, stretching for as many blocks as you are comfortable commuting. Someone mentioned Bryan Park here, and that's an awesome area of the town. In general, avoid the northern areas around campus, especially around the stadium (17th St). This is Undergrad Land, and maybe you have heard that we have a reputation for Getting Down (#1 party school in the US ten years ago or so). The epicenter of this lifestyle is the Varsity Villas. They are cheap, but they never stop partying.
Email me if you'd like other things answered about the town! I love this place. Good luck and have fun with your studies here. (Cc'ing this to the IUB Admits page as well.)