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The expectations are that an "artist residency" is something you get paid to do, not the other way around. At a minimum, the tuition for pretty much every reputable artist residency is free even if you are asked to pay room and board.

Also, you keep saying that the housing is subsidized, but it doesn't really seem like it. If you split a studio two ways in Berkeley, that's easily under $1500 for a month. Sure, it's less than a hotel for a month and splitting a crappy studio is pretty uncomfortable, so your price might be good value. Maybe it's below your costs, but not necessarily below market for "shared bedroom in trendy suburb."

I think I personally have a problem with the way you labeled this more than anything else. This seems like a great program for someone who has made some money doing something else and wants to do a writing/blogging intensive course. It does not seem like something that would attract an upcoming professional writer.