All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallahu ‘alayhi wa sallam, is His slave and Messenger.
There is no religious impediment that a Muslim lives in a place next to or facing the graves, even if they are graves of non-Muslims. However, the Muslim should not enter the graveyards of non-Muslims. The Prophet, sallallahu ‘alayhi wa sallam, warned against entering the dwelling places of the disbelievers who had wronged themselves. He, sallallahu ‘alayhi wa sallam, said, “Do not enter the ruined dwellings of those who were unjust to themselves unless (you enter) weeping, lest the punishment that befell them befalls you as well...” [Muslim and others]
Allah knows best.