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Newport's best neighborhood is East Row, however it is rather expensive. No parts of Newport are incredibly bad, and the city has really cleaned up since the 1970s, but Newport's setup basically comprises of great blocks here and there amongst trashy or Section 8 blocks.
Might I recommend Bellevue, Downtown Dayton, Fort Thomas, Southgate, Ludlow, Park Hills, Villa Hills, South Covington (south of Latonia), Fort Mitchell, Wilder, Highland Heights, and Cold Spring. All are within less than eight miles of Newport and are very nice and safe areas.
Particularly in the case of Fort Mitchell and Fort Thomas you would live in the Beechwood Independent or Fort Thomas Independent School System, respectively, two of Kentucky's and Greater Cincinnati's very best public school systems. The rest of these fall within other school systems that frankly aren't as great, or just not good at all in some cases (think Covington and Newport proper.)
Covington has Botany Hills/West Covington, most of east Latonia, and the very prestigious (albeit expensive) Central Business and Licking Riverside Districts that are great places to raise a family. Much of Covington has improved too since the 1970s but still has much to be improved.
Good luck! I'm moving there in two weeks and am looking forward to it; I've been impressed with how friendly and helpful everybody I've interacted with has been so far.
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