Recently I applied for schools down in another state. My intention was to stay on campus and live in the dorms, however, now that I have started testosterone, I am starting to have second thoughts about that as I know considering my information still has "F" on it, they will place me with women. I don't know what to do, this school is down in a small town and now that I am thinking about it over and over, I am having regrets. I feel as if I didn't think this through, and was just trying to get enrolled in to a school while it was still early. Should I go to this school in this small southern town and live in the dorms, or should I stick around, stay in the neighboring state in a medium-large city, go to the schools here, and live with my mother until I am done with my degree ?

Ultimately only you can make that decision. Personally, I would place a phone call or send an email to the housing department and inform them of your situation. Higher ed (especially housing in my personal experience) is often filled with warm fuzzy types who would feel terrible if they knew that you were uncomfortable.

I would spend some time writing a well-thought out email and (1) let them know the situation, (2) make a request for whatever type of housing you would like, and (3) ask about their policies for transgender students.

Hey, I'm in academia and am acquainted with some of the southern schools' policies.  PM me if you like, and I'll provide insight if I can.  If it's a state school, you *should* have resources, but if it has any religious affiliation, even a loose one, you will be better off attending a larger university nearby.

Has someone actually told you that you're required to be in a female dorm or does the school have a policy that explicitly states transgender students are restricted to certain dorms based on their gender at birth? That's a lot to be worrying about if not.

A lot of colleges and universities are flexible and some will even offer transgender students who are still in transition a single room that's either in their gender's dorm building or in a coed building. You just have to talk to whoever handles residency and explain your situation then go from there.

Living out of state may mean you have extra tuition fees so you'll have to decide what you want most in a school; a transgender friendly atmosphere, a decent cost, or the benefits of what they offer for your major. We can't really tell you what to choose.

There was a trans girl in my hallway freshman year.  She had her own room.  I believe it was an arrangement made due to her trans status.. I don't really know.  I was a girl at the time, and she never really interacted with anyone of us in the hallway.