The student ghetto in Ann Arbor is an area of town near the University of Michigan. It is characterized by dense older rental housing, narrow streets not built for all of the cars that students bring to town these days, trash on the streets after football games and loud parties.
Several of the homes and neighborhoods in these areas are built along low lying parts of town, including neighborhoods within the Allen Creek floodplain.
No homeowner actually lives in a student ghetto and the cost of rent can easily exceed that of large, desirable houses outside of Ann Arbor. Oddly enough, prestigious and historic neighborhoods overlap with student ghetto neighborhoods depending on whether you are asking a real estate agent or an undergraduate.