Rentals on the north side of Bozeman tend to be less expensive than the south side, but the west side is also an excellent area for rentals, as the properties tend to be newer and prices have declined in the last year. I have an excellent rental property under contract and could search for you. Taunya Fagan Prudential Montana Real Estate.
Having lived in Bozeman most of my life (I now live in Helena, Mt) I can tell you anywhere in Bozeman is good for renting. The optimum would be around the college (southside) but rentals are in high demand anywhere. You not only have Montana State University but alot of people in the area just can't afford the high priced housing so will continue to rent. Bozeman is a beautiful town with two great ski hills and plenty of recreation so alot of people want to live there. I pretty much rented on the northside when I was younger, the area you are talking about is convenient to downtown so I think it would do well. Good luck!