The nicest areas is the Scottsdale area. But it's also more expensive. If you're looking for reasonable price I would look into the East Valley area, such as Mesa and Gilbert. They have nice areas...
I don't know anything about the school you're applying to, so I have no advice for you in that area. But I understand your dilemma with the GPA. I hope to get my Masters someday as well and a 2.0 GPA...