Depends on what you are after really, do you want the beach, city or country side? i would choose a suburb that you easily walk to the tram or train. I live by the beach on the Frankston line which takes around 45 mins to an hour to get to finders street and is right on the beach, cafes, supermarkets, massive safe park ect you should easily afford a decent rental home in your budget. Example of what you can get in my suburb for you budget, you could probably afford to move a little closer to the city.
https://www.domain.com.au/2-46-argyle-avenue-chelsea-vic-3196-12692410