Honestly, it doesn't sound like you're in a position to move. Your budget is low for the current market, it sounds like your credit score isn't great, and you're going to fuck up your future by breaking the lease.

I understand that the situation sucks, but you're not doing yourself any favors by getting aggressive with the neighbor. And living in the hood, it's not a good idea to get the police involved.

Get some ear plugs, stop communicating with the neighbor, and deal with it until your lease ends.