Hyper truth...
there are numerous options for you. First (and easiest) is Student housing at the University Inn/Student Apartments (I don't exactly know what they call it). They normally show it on a tour, but maybe they didn;t for you. It is a converted hotel... pictures should be online (DCOM's site) and other people on SDN should be able to give a better description. I know a lot of people who live on their own. They rented an apartment, a room from someone with a house, etc. That's what I do. I live in Knoxville, and my wife lives there to run her business, but I rent a room from a guy in a house up here, live up here during the week, and go home on the weekends. I know some people who live on the Northeast side of Knoxville and commute (it's pretty tough the first semester, but is more doable thereafter)... MJB on Student Doctor network can provide the details. I know a few people who live in Caryville/LaFollette, TN, most of whom have spouses who work in Knoxville or down near there. others rent in Tazeweel, Middlesboro or even into Virginia. Bottom line, there are places to rent, places to buy (if that is your fancy and you have a little extra cash... the market is pretty good if you're a buyer)
I hope that helps... start looking and you'll be surprised how much you find