It would work very well if you can market it successfully. The town where I live has a site like that (it s also a university town), and it s where most students find apartments/houses to rent.
Use a website like eCoder or eLance.com to find programmers that can write the logic for a site like that. They will be less expensive that trying to find someone local to do it. I always use programmers in the Pacific Rim or Slavic countries where US dollars go a long way.