The cheapest bet is in the central valley around Sacramento or Stockton. About a 2hr drive to SFO in NON-rush hour which is only at night time just about. If your willing to live 3 hrs out, you can live in the Sierra foothills which is nice. Summers in the Central Valley are 100* plus, though.

Silicon Valley salaries and overseas investors have made the Bay Area unaffordable. You could try for Sec. 8, though. Lots of bums in my brother's neighborhood living in dumps worth 750K.

A small house will cost you 3000/mo to rent, at least.