Rob,
I always prefer to paint from life as I think it helps in many ways, including making ones' brushwork more expressive. That of course is not always possible, but the experience somehow does seem to have a beneficent effect on that work done of necessity from photos. Even Klimt used them to grab a few bucks here and there for his bread and butter portraits early in his career.
One suggestion I have is to share the models expenses with another. Do a set up that is amenable to both of you. You could add a third if you have the room and you won't end up killing each other. I am now paying $15 an hour down here in RI and for 16-20 hours a week and I know it can be a killer. The cheapest rate I found was 3 hours for $40 here. My present model is not a nude, but I think she is quite beautiful. My "Dakini" model was $15 per hour and was quite lovely as well.
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