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I suggest looking on craigslist for rentals. It will give you a good idea of what is out there for what you are looking to spend.
As for how long it takes to reach Penn Station - that depends on where you are. Penn Station is on 34th St. on the west side so if you live on the west side, it will of course be shorter. However, it also depends on how fast the subway train comes. It may come right away or you might have to wait. It also depends how far you live from a subway station, if the subway station you live by has a train that goes to penn station, etc. There are a lot of variables. But if you want to be close to penn station, then I would recommend Hells Kitchen (bad name but not a bad area) which is in the 30's on the west side. It would definitely take longer to commute from the upper east side to penn station.
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