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Congrats on the new job! I'd try Piedmont first and see what you can find, since the schools are terrific--but there aren't many rentals and they tend to run a lot more than that so you'd have to luck out. Barring that, I'd look at Berkeley and Oakland. Both have a number of good schools (and also some bad ones--so you'd need to get a good map of the districts), and a lot more rental properties. (With the market being so bad, I've seen a number of small houses for rent, too.) Some of the areas of Oakland near Piedmont--Lakeshore, Rockridge, Claremont, Piedmont Avenue--are especially nice with solid schools, but are pricey. You might do well with someplace like the Dimond or Glenview Districts in Oakland, which have great elementary schools and are quick commutes to Piedmont. You could also go over the hills to Lamorinda, but again--not as much for rent and a little pricier. A 7 am commute to Piedmont isn't horrific, but I try to avoid being anywhere near the freeways between 5 and 7 pm. (Again, some days it's moving--but many days it's not.) Good luck!
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