Hello S.,
If your looking for affordable housing close to the city-St. Louis park is a good bet. It has a great school system & is super close to downtown Mpls. Unlike cities like Maple Grove, Chanhassen, Chaska (where you would spend half of your life in traffic to get to downtown)- no offense to anyone who lives in those cities-I'm sure they're nice but you'd have to admit the traffic would be horrible during rush hours! There are parts of S. Mpls which are pretty affordable too, such as the Nokomis area-but you'd want to be cafeful where you look because it's close to the airport & depending on the part of Nokomis you're looking at could be quite loud.
One suggestion I have for you is to find a real estate agent in Mpls. that can help determine a good area for your family taking into account your needs and income.
Right now is a GREAT time to buy here, the market is flooded with inventory which makes it a total buyers market!
Feel free to contact me if you would like recommendations for a good real estate agent, I know a few!
Good luck!