What are you moving for?
San Jose isn't particularly great as far as the scene or venues, but like Turk says the great thing is that you're less than an hour away from SF, Oakland/Berkley and Santa Cruz, and you don't have to take a bridge to get anywhere. I'd say that Oakland is the place to be for local bands.
Prices depend on where you're looking since like anywhere else, things vary from one neighborhood to another.
San Jose itself is enormous but just downtown a one bedroom/studio starts at $800-1000 and can be up to around $2000. The area isn't great aesthetically but it's close to all the bars, clubs, SJSU, etc...
South SJ is generally cheaper but probably farther away from wherever you're gonna be working.
East is cheaper since its... the east side.
North is basically Santa Clara, I don't really know much about it.
Cupertino is kind of an upper class suburban area built around Apple and some other tech companies.
Los Gatos is farther in the hills but supposed to be nice.
If I remember correctly the creator lives in Sunnyvale...
I don't know how much that helps you, but that's what I know. As you'd expect the nicer, more accessible areas are going to be more expensive. I'd suggest looking on Craigslist if you haven't already. Feel free to ask if you have anything more specific and I'll tell you what I can.
4/12 Fear FestEvil???
4/17 Electric Fucking Wizard
4/28 Mastodong/Clutch/Big Biz