I lived north of Cebu in a rural-ish area outside of a larger town for 2 1/2 years, before moving into town to gain Internet access (see below). I had a great time.
A family let me stay in one room...rent-free. Actually, it wasn't rent-free, as I bought food and a few other things for the house and took a member or two of the family with me to Cebu when I went.
The house was very basic, made of cement. It did have running water and electricity, however. I paid the electric bill, as I consumed comparatively lots of electricity.
There was no Internet reception and I rented a (very) small space in town for my computer set-up (1000p/month from a relative of the family).
Neglecting unnecessary stuff (such as an expensive karaoke rig), I spent slightly less than $1k a month. There wasn't much selection as far as restaurants, so I didn't spend much on that unless I ventured into Cebu. I did that once or twice per month.
I got to know almost everyone in my barangay and everyone was very friendly and didn't try to take advantage of me. I believe this is because that would bring shame to them, as my host family was "responsible" for me and they were respected.
The last year, I moved into the city, as I said to gain Internet access so I didn't need to wake up every morning at 5:30 a.m. and travel into town.
With help, I found an extremely comfortable four-bedroom FURNISHED house with a huge living room and kitchen and a huge yard for 10k pesos. The bedrooms were good-sized.
This was "Filipino price" and I'm pretty sure I wouldn't have received this price without help from friends. The landlord did, however, know that a foreigner was moving in. He did not previously know my friends that arranged it.
The house was a bit worn-down and I'm sure a lot of posters on this forum wouldn't be happy with it, but it was perfect for me. I honestly don't care about having new and perfect accommodations. There was nothing seriously wrong with it though.
It was constructed of wood, with nice wood floors. For some reason, I cannot remember the bathroom/shower, but it was indoors. No hot water.
So here is my theory: Find a Filipino friend *that you can trust*, be generous (but no need to be overly so), and they will be a loyal friend and help you with things you didn't even realize you needed help with.
I know many foreigners have pessimistic views of Filipinos, their trustworthiness, and their motives. But treat a select few as you would your good friends back home and you will be richly rewarded...getting better deals on things (they know how and where to look, and if they don't one of their friends does), schooling you about Filipino culture (this is INCREDIBLY important to really appreciate life in the Philippines!), introducing to others who have similar interests as you, and so many other things you will discover.
Many foreigners want nothing to do with having Filipino friends and integrating into the society. I have nothing against those people, unless they are going to whine and complain nonstop about Filipinos and their ways (which was true of over half of the foreigner acquaintances I knew--I tried to avoid them as much as possible).
I'm very surprised that people don't take the time to make good Filipino friends while living in the Philippines. The life experience is completely different. You'll appreciate the country and its people in ways you never could otherwise.
Before traveling to the Philippines, I recommend everyone read the book "Culture Shock: Philippines":
http://www.amazon.com/Culture-Shock-...ck+philippines
This will give you a basic understanding of things you would never even consider about the culture, even when associating frequently with Filipinos. You still won't fully understand the culture, but you will begin to understand the many seemingly "un-understandable" (as a Filipino friend says) actions that are taken by Filipinos.
Oh, and I never once felt threatened while in the Philippines, but I was watched over by my host family.