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it depends on the lifestyle you want.
it you are ok with suburban living and have a car, there are plenty of cheap options in York Region, as highthief suggests.
however, if you are looking for a more urban experience I would suggest looking at living in the west end of Toronto. Whether you have a car or not, the commute to York is a bit of a drag. If you are living in the west end you should be able to get to keele station relatively easily and take the bus to york from there (i know plenty who do this).
There are reasonable (by toronto standards) rents to be had in the bloor west village and high park areas of town.
Another area to think about is north and central. When I was going to York I lived at Yonge and Finch. From there it was one bus to york from finch station but it was also one reasonably quick subway ride to the city.
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