Lots of people live uptown near the undergrad campus, but if you want to buy a house some areas like Bywater and the Marigny are going through gentrification that will make houses there good investments, especially if you're not afraid of fixing some things up yourself.
Of course, New Orleans is highly variable street by street, so it's best if you make a list of places you want to check out, and arrange a weekend to come down and see all of them. Lots of places will open up for rent around April/may so you might consider waiting until then to look if you decide to rent.