I think since you live in Rockville, Maryland, you are probably inquiring about Ocean City, Md.
We can find you something for $175K or less, it's the direct bay front that maybe tough. One of the more moderately priced bayfront communities is Bayspot Condominiums located on 52nd Street (which is a mid town location). However, they start in the low $200's. It's close.
Very important in today's market is understanding condominium financing if you are planning on gettting a loan. I attached a web reference to an article I wrote relating to obtaining condo mortgages. Check it out.
Also, go to http://www.Ocean-CitySales.com and you can see all properties currently for sale in Ocean City.
I remain available to help.
My best from the Beach.
If you were referring to Ocean City, MD, there are just a few properties on the water under $200,000. Most were smaller than the 800 SF you mentioned. However, I did find a few which indicated sellers may consider offers that were priced higher. I would be happy to share some of these possibilities with you. Feel free to contact me for available properties.
Linda Quasney, REALTOR, GRI
ResortQuest Real Estate