He wasn't talking about just rent, you have to figure in food costs and medical costs etc. Though I do agree that you can make it on that much in certain parts of the Bay.
As mentioned in the article her medical care is already taken care of by a union-sponsored health insurance plan run by a big HMO. These typically require very low or zero payments by the insured.
$~1300 will get you a decent Studio/1BR/Shared in the East Bay (Dublin, Livermore). Not bad neighborhoods, close to BART.
Go even a few miles East of these areas, rent drops rather quickly.