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I did the same math and my results came out the opposite way - in a much cheaper country however. I had a rent free situation over an hour away, but ended up renting an apartment near work. My time alone was worth it, being able to pay the month's rent using one week's commute time for freelancing after work. And the monthly fuel cost itself would've been 2/3 of my month's rent.

Everyone's circumstances are different. I made what I believe was the most sensible economic decision - paying to get out of commuting. For you, the opposite was sensible, commuting to reduce rent. Can't really judge you for doing what's best for your wallet in these tough times we're living.