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I lived there for a few years in the early 1990's so I likely don't have much to offer right now. As PK said out of town is better price wise, but if you are going to commute into Seattle daily that could be a pain the ass because the traffic sucks.
I lived right downtown when I was there. For about six months in the more northern end of the city and then rest of the time in an apartment on the eastside. Transit then was great so I would assume it still is then. I had a decent size studio apartment with a city view and didn't pay a whole lot, but I think that neighborhood has become more trendy so it is a lot more expensive. It had a bus stop in front of my building so I didn't even own a car (which at times was a pain)
All over Seattle the mass transit is pretty good, but if you have to rely on it to commute a decent distance research in advance because you might find it to be a long ride every day.
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