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The NYC rental market is through the roof. As others have said, there is no way you'll get an apartment in the city, 20 minutes from work for $1000. You have to decide which is the bigger priority: price or commute. If commute is most important, you're looking at probably around $1500 or more for a studio anywhere near midtown. A friend of mine had a studio on 42nd and 3rd for $1600.
If price is more important, look at Brooklyn or Queens. I live in Astoria. A few years ago I had a one bedroom there for $1200.
Also, if you are working near Grand Central, you might want to look at Brooklyn - the 4 and 5 trains go there and stop right at Grand Central. I don't know too much about the area.
I would say to look at Craigslist more to get a real good idea of the market - then go visit the Housing Forum there and ask for more advice. They can be a little snarky at times but were very helpful when I needed advice.
Good luck!
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