if you really want to go to this school you got into then i do hope you will go. you've already sacrificed by being willing to find a school near his school choice location
and live near his school once you guys were to be there. now, he needs to do some sacrificing for you. it can't always be you doing all the sacrificing. that isn't healthy. if he can't do that, well then maybe he's not really the best guy for you.
my best friend's brother didn't get into med school the first time he applied. so, he did a one-year grad school program and reapplied the following year. he got in and has been a happily practicing doctor for quite some time now. if your boyfriend really wants to go to this particular school then he should do something like you suggested and reapply next year. i do hope you two will be able to work something out.