I actually did my undergrad there, and it seems like a total undergrad scene at first, but there are some really great areas--i would look for something near the bridge in North Bethlehem, or maybe even right downtown in southside, and I know there are a few condos on the other side of south mountain if you are driving. If you live downtown on the north side, you can comfortably bike around.
I'd set my budget for about $700/mo. but try to push it, depending on your tolerance for small spaces/urban living.
Safety--yes, compared to other cities it's VERY safe. We rarely locked our doors. It looks a little slummy in parts, but really the only crimes were drunk undergrads wandering around alone and getting mugged at 3 AM, like once a year.
What are you studying? I miss it so much!
