The 25-year-old dancer will be sharing with a friend in Shepherd's Bush, west London, just two Tube stops away from the Prince's royal residence.
"Cress loves the area and likes to go to the Havelock Tavern, which is the actress Carey Mulligan's local," a friend says.
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According to the source, Cressida was looking to be close to her boyfriend, as well as a more affordable area than swanky Kensington. "She and her friend Daisy have been hunting for somewhere nice and cheap but also close to Kensington Palace," they added.
"Kensington is far too expensive, so she went for the closest area that was affordable.
"It's just two Tube stops from Notting Hill Gate which is the station she uses when she goes to see Harry."
Cressida's friend adds that despite increasing speculation that the pair are close to tying the knot, the pretty blonde “has no intention of living with Harry just yet, despite what people have been saying."
The odds for Harry popping the question to Cressida were recently cut to only 8:1, following the couple's first ever public appearances.
Until now the pair have kept an extremely low profile, seldom being pictured together at all.
The couple went public when Cressida joined Harry at the launch of the very first WE Day at Wembley Arena. They sat together in the stands of the stadium, where Harry was at one point seen putting his arm round his 25-year-old love and Cressida sneaked in a quick kiss on the royal's cheek.
Just two days later, they stepped out for their second ever high-profile outing, enjoying the rugby at Twickenham, where England and Wales were competing the Six Nations.
"The more Cressida is spotted with Harry, the more [customers] are convinced an engagement is on the cards sooner rather than later," said Jessica Bridge, public relations officer of Ladbrokes.
Prince Charles' The Prince's Trust ambassadors and presenters speak to HELLO! below: