It all depends on what you're looking for and what you're comfortable with. I did Mars/Lee my first year here. I thought the apartments were fine if you don't mind sharing a kitchen and living space with 2 other people. Living with others is a good way to make friends your first year. They also allow pets this year, which is nice. I hear the Inn is creepy but I've never been inside of the rooms so I'll let someone else speak to that. However, the hallways look like a run-down hotel to me. If you want school housing and you also want an entire apartment to yourself you'll be looking at the Inn as your only option. Included in your rent is access to the pool that they refurbished this summer as well as a nice gym that is never busy. There's a bigger gym on campus but if you like exercising in an empty gym, this one is great. Mars/Lee and Inn students all have access to these facilities. The drive to school is literally 2 minutes. There are dumpsters in the parking lot where you can throw your trash bags. It doesn't seem like that big of a deal until you have to walk all the way out there in the snow to throw your trash away.
If you want to live alone and won't be bothered by the occasional train horn the Ball apartments are really very nice. Rent next year will be $575 and then you pay an additional amount (I think 30$/month but I can't remember) for washer dryer. My electric bill is usually 40-60$/month and I pay for the second best internet and no cable which is $75/ month. Water is included in the rent. In total I pay slightly more than if I were to live in Mars/Lee with 2 room mates. The Ball apartments also allow pets. They are located 5 minutes drive from school. Trash pick up is 20$ a month but you can split that with your neighbor if you want to reduce costs and you can't fill an entire trashcan. If you choose to dispose of your own trash, the dump is 5 minutes up the road.
There are some other apartments currently being built in the same-ish area as Ball. If I had to choose again, I'd probably pick those. The last option is renting out a house with a few other people. This is probably the cheapest option. People will start posting about needing room mates for a house on your class's Facebook page when its started. If you decide on this option you can look for housing in Harrogate, Morristown, La Follette (30-40 minutes from school, but much closer to knoxville), Cumberland Gap, New Tazewell, or Middlesboro (it's in KY but is like a 5-10 minute drive from campus) just to name a few places.
This is a good website to help find off campus housing
http://www.dcomdo.com/view-ads