Housing in Memphis

So I found out yesterday I didn't get the apartment I applied for. I don't have credit and don't make enough money. I wasn't too horribly surprised because when I first moved out I had similar problems. It got me to thinking though about the housing situation in Memphis, which I know Krista and Faith are considering doing their project on. If I can't qualify to get a place to live and I make 35,000 a year, how do people on minimum wage manage? Is it easier to get approved for section 8 or HUD housing than it is through a traditional lender? I know I ran into similar problems when I tried to buy a house with my ex-husband. He made to much money for us to qualify for the first time home buyers program, but neither of us had the credit to qualify for much. How are people who follow the "if I can't afford it I don't need it" philosophy (on which I was raised and strictly follow) supposed to survive in an economy based on credit cards and loans? I know everyone is skeptical of the economy right now, but why can't credit checks rely on character references as much as credit scores. Is the housing situation that is sweeping the nation worse in Memphis than other areas? I must admit I'm not very knowledgeable about economics- it's horribly confusing. Hopefully once I do get an apartment I can find a housing for dummies class and take so I can work on what I need to do so that when I get done with school I can buy a house.