Welcome to DC, almost. Check out www.artemisracing.org for a good club in Baltimore. I've lived in DC for 4 years, and it is possible to find a studio for less than $1000 (like $5 less), but rarely anything larger. Craigs List is definitely the good way to go.

If you would like more info on the city and locations of the apartments you are considering, send me a PM. There are great neighborhoods throughout the city and in surrounding areas.