I would get my budget to $1k a month unless you plan to room somewhere near a metro area.
If you dont mind being out the stix - you can get some nice places for sub $500, but you'll be in the hills or in the hood.
Furniture - Why worry about it? ... If you are reading craigslist already there is a ton of free furniture that people would be overjoyed to get rid of. I know I have given away some great pieces as me and the wife upgraded to newer stuff over time.
If you are that hung up on furniture - you can furnish your place from Ikea on the cheap
