No. Anyone with bad credit is required to live in a cardboard box under a bridge.
Used to be that anyone with bad credit was required to buy a home with Countrywide as the lender.
Of course you can rent. What do you think's happened to many/most of the people who've done short sales or been foreclosed upon? They still have to live somewhere, and they're not all living with their relatives.
There's a lot of good advice below. One thing I'd add is that some investors (and thus some landlords) have different categories of "bad credit." For instance, if you'd had good credit and then something bad happened--job loss, illness, etc.--that damaged your credit, but now you're rebuilding it, that's a good thing. That's forgiveable. On the other hand, if someone is a habitual deadbeat--consistently skipping out on landlords, regularly not paying bills on time--that's bad. To the extent possible, you want to show that you fall into that first category . . . that you know what good credit is, that you're on your way to restoring your credit, and so on.
Hope that helps.