We, too, were a family of 3 when we moved to Portland almost 5 years ago. I spent about a week tourning the different neighborhoods where I could find something in my price range... and then SE Portland (where you're now considering) stole my heart. It is a fabulous part of the city - a great urban vibe, wonderful neighborhoods, and ecclectic people. Considering you're looking for a bungalow/craftsman home, SE is also where you'll get the most bang for your buck in a vintage home.
In regards to schools and other demographics that may sway your decision in one direction or another, here is a website that will be invaluable for your search:
(You simply type in the address of the home you're considering and it gives you EVERYTHING you want to know: schools, property information, crime stats, zoning, etc., etc.)
As for schools particularly, Portland Monthly (an awesome local publication) publishes the school report cards every December. Here is a PDF of the article:
(When you find a place you like all you'll have to do is check out the school on this cart to see if it meets your standards.)
Finally, I must say this is a great time to be buying into the market. Not only is there great inventory and many options, but rates are lower than they've been in years!!! To take advantage of what is going on with the rates, though, I highly recommend getting in touch with a great mortgage broker that can lock your rate while you continue your search. (I have a wonderful referral if you need one.)
Anyway, if you email me through my website with additional home specs I would love to sift through the listings and send you the ones with easy access to things - and there are a few that come to mind as I write this. (Not only did I live in inner SE for 4 years it is the heart of my business.) In any event, enjoy the move!! You are going to LOVE Portland.
Many blessings, Elisha