Rožaje is a small town in Montenegro important as a transfer city when coming and going from Kosovo, Novi Pazar and Montenegro. It is located high in the mountains and is the last stop before entering Kosovo from Montenegro. The population is primarily Slavic Muslim.
It is an interesting little border city located in a steep valley. There is nothing particularly outstanding about the city but if you have to pick a place to stop for the night (particularly before entering Kosovo) it's not too bad. There are several old mosques and there is a definite Islamic feel to the architecture.
Turjak a popular skiing resort, located near the town.
Cheap accommodation won't be very easy to find, but it is there. €10/person would be a good price. Try asking around at the restaurants on the main street, frequently they will have a room for rent above. Don't count on this though, get there early and arrange accommodation.
Your only two options are taking a bus or hitch hiking.