A guy I went to high school with pays $475/mo for a 2bd off of Crater Lake Blvd about 1.5 miles from downtown. It's a crappy 1970s building with carpet, parking lot, children, dogs, etc.
I really like the downtown area, especially since they've kinda half-heartedly tried to revamp it in the last 5 years or so. Could I live there at $10 an hour? Yeah, easily. As long as i stayed away from Chateaulin in Ashland and their golden beet salad (instead opting for a local burrito), I'd be fine.