In Lincoln, NE you can get a one bedroom apartment with utilities included for $425 and if you are happy with 15' x 20' one room apartment you can get one for $275.  There is a college here so finding interns is fairly easy and there are lots of small startups.  However, once you start growing you might have trouble hiring enough people since there just aren't as many people who want to be in Lincoln as there are people who want to be in Silicon Valley or the east coast.  I'm not very social so I don't know how good the socializing is here.