Unfortunately, places near the Champs-Elysées are amongst the most expensive in Paris. Fortunately, however, most places in Paris are at most a 30-minute metro ride away from one another. This is also the perfect time to be moving in to some of the former "shabby" neighborhoods, because they are becoming a lot more fun and popular.

Paris is broken into arrondissements, which are numbered neighborhoods from 1-20 that start in the center of Paris and spiral out in a clockwise direction. This means that the Champs-Elysées, for example, which is in the 8th, is next to the 7th, the 16th, the 17th, the 18th, the 9th and the 1st. The 7th is home of the Eiffel Tower and is even more expensive than the 8th. The 16th is very residential, so while it's not the cheapest place to live in Paris, you can find a very nice apartment for much less than in the 7th or 8th. The 17th and 18th are outer arrondissements (the 18th is also home to Amélie Poulain from the 2001 movie). All outer arrondissements (i.e. from 17th-20th) are on the less expensive side, but they are also the farthest from the center of the city.

The 12th, home of the Canal St. Martin, is very close to Bastille and Oberkampf, two very fun neighborhoods on the right bank. It is also one of the up-and-coming neighborhoods that hasn't yet had a rent hike. The main problem with the 12th is that it is on the other side of the city from the 8th, however because they are both on the right side of the river Seine, you are likely to be able to ride the métro 1 line straight from home in the 12th to the 8th. This is not necessarily true of the other arrondissements I mentioned: you may have to switch several times to reach your destination, which can be a pain.

Hey Spark of the Moon:

If I would have to live in Paris I would surely pick up the Latin Quarter. This has nothing to do with the totally silly USA’s Latin-Hispanic labeling of things and people. Quartier Latin alludes perhaps to the Latin Culture grandiosity in its original European expressions. In fact here you will find the Sorbonne, one of the oldest European universities. Therefore students are in every café’s corner discussing all sort of intellectual matters. Quartier Latin is also famous for hosting future will-be writers – thus it may be a good idea to search for students dwelling in the area, share something to start with.

The areas with narrow “human-scale” medieval streets, the excellent transport system (many underground connections), and the proximity to major monuments like the Pantheon or Notre Dame’s Cathedral – are among factors to consider to live there. The Luxembourg Gardens are around too – and in general you will be in one of the best bohemian areas of Paris.

I have three words for you: Boulevard Saint-Michel. I lived on that street for about 6 months and it was the most perfect experience of my life. The Quartier Latin, the Jardin du Luxembourg, the Marais just across the river, the great restaurants just around the corner on Boulevard Montparnasse. It's a bit of a kitschy street, but good kitsch, like St. Marks Place in New York. It is relatively cheap by comparison as well.

Hey, Hey, Hey.
Money-wsie you're definetely looking at probably Arr. 17, 18 or 19. These are on the outskirts of the city, so are probably that little bit cheaper. I lived in the 17th for about three months and felt really safe; it was value for money; and I was able to get places easily. If I was heading back to live again, and knew where I was working, I'd certainly check out the metro map and see what direct lines run to where I need to be. The metro is dead-easy, but avoiding changes, on a daily basis, might save you some time. I recently visited the 19th and found it easy to travel from (but not as easy as where I was in 17th); and the 18th has a definte cool vibe to it.