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A dishwasher could afford $959/mo? First of all, no. Second of all, this is about the size of a large dorm room so I don't see the issue. If people want to live in a tiny cage, they're free to.
I've been to some studio apartments in Boston that weren't much bigger. As long as the occupancy of these are limited, I don't see much of an issue either. IMO some of the resistance comes from people not wanting a bunch of poor folk squeezing into their expensive neighborhood. I'm pretty sure that with the limited number, they are going to fill them with upwardly-mobile youth.