Austin is fantastic as far as the job market goes but I wouldn't consider it anywhere near cheap unless you want a very long commute into the city or find a job in Round Rock, Buda, or Cedar Park.
Unless you want to live in the ghetto, you won't be able to rent near Midtown for less than $900 for a small one bedroom.
I mean, houston is the same way. I used to live 30-45 mins away and I got a $1200 3br nice house in a nice neighborhood.
I live in Midtown now and a 1br is $1400+. But off at the medical center you can find places that are around $900 for 1br, and sometimes less. And that's 15 minutes (or less) from downtown.
Unless you want to live in the ghetto, you won't be able to rent near Midtown for less than $900 for a small one bedroom.