Does “not in the south” also rule out the southwest?
Arizona has both Barrett Honors at ASU in Tempe, and the U of Arizona in Tucson. U of A is one of the few public U’s to offer a political philosophy major that is modeled after Oxford’s PPE program and operates as a cohort program - sounds like this might be of interest for your daughter: https://moralscience.arizona.edu/ba-philosophy-politics-economics-and-law
U of Utah is another flagship that would satisfy your criteria; it has an urban setting in Salt Lake City (but also close to amazing outdoor recreation), and a really nice Honors College that would be worth a look. OOS costs are relatively affordable, and Utah also offers OOS students a path to residency for years 2-4 (which would take even more off the top than the DC subsidy but would require staying in Utah that first summer).
West Coast wise, UW-Seattle could be a great fit but on the pricier end - they do give modest merit scholarships (four figures, not five) that could bring tuition into your range, but only barely. The U of California system is a non-starter financially; there are some options in the Cal State system, but in that system, the categories of “urban” and “not a commuter school” don’t overlap much. San Diego State and its Honors College could be worth a look.
(P.S. agree that both Pitt and Temple seem to fit what your daughter is looking for better than Penn State, which is both rural and a party school. Pitt Honors has a PPE honors-only major, fwiw.)