I feel like anti-discrimination laws could be circumvented on the same grounds that non-Stanford students can't live in Stanford dorms. As for renting out expensive real estate cheaply, I don't think this would be the case as the real cost is the property not the building, so building a higher density building theoretically allow enough money to be made because of more rents (albeit at less rent per unit). Also, I'm thinking of a more dorm-esque living space with small rooms and shared spaces.