I went to college in New York. I have friends in New York and family. From personal experience, $850/month is ridiculously affordable and that's true for any major city. Most cities (San Fran, LA, Chicago etc) average around $1000 or higher. I have a friend at UCSF paying $3300 a month for three people no utilities included. She also has to pay for a monthly bus pass to get to school. I think if you are considering NYU, then you should be happy with such a low rent.