I (personally) like IPS, due to color reproduction and accuracy, as well as viewing angles, so I included an IPS display from LG. As long as your response time is under 7ms or so, it's good for gaming, and this LG has 5ms, which is about average for TN panels, and pretty good for IPS.
Changed you up to the Xeon chip for just a tad more money. It'll game right now just as well as an i5, but it seems like you want something that will last a long time, and with hyperthreading, the Xeon will last for a VERY long time for gaming. Also threw in a CPU cooler to keep it quiet.
Also upgraded to the H97 board. The B85 is more business oriented, and the H97 will allow for the next couple cycles of Intel CPU upgrades - if you want to - and the H97 Pro4 is a great mix of quality/price.
Added an SSD, because at this budget you certainly want to make the system as fast as you can. With Windows 8.1 and an SSD, you can cold boot almost as fast as Windows 7 can come back from sleep lol
The power supply included is a great value, and is solidly made. Has plenty of power and quality to last you a long time.
I'm glad you spelled out what UPS stands for lol I've known what they are, but as I've never used one personally (nor taken the time to research lol) I've never known that's what it stood for. To answer your question on this topic, though, most places in the US have very stable power. I can't speak for exactly where you're going to live, but I will say you won't absolutely need one. If it will make you feel better, and you can afford one, might as well get one
Just make sure you get one with 450w+ delivery. You won't come near that, but you want to make sure you have plenty of headroom, as the one time there will be a power surge/outage, it'll be when you're doing that one resource-intensive extremely important thing lol
Overall, the build below is built around quality and longevity. With the Xeon and 770, you'll be playing games at 1080p in High/Ultra/Max for years to come, with no worry about the parts included:
PCPartPicker part list /
Price breakdown by merchant /
Benchmarks
CPU: Intel Xeon E3-1230 V3 3.3GHz Quad-Core Processor ($239.98 @ SuperBiiz)
CPU Cooler: Cooler Master Hyper TX3 54.8 CFM Sleeve Bearing CPU Cooler ($18.16 @ NCIX US)
Motherboard: ASRock H97M PRO4 Micro ATX LGA1150 Motherboard ($87.98 @ SuperBiiz)
Memory: A-Data XPG V2 8GB (2 x 4GB) DDR3-1600 Memory ($66.99 @ Newegg)
Storage: Mushkin 120GB 2.5" Solid State Disk ($65.99 @ Newegg)
Storage: Seagate Barracuda 1TB 3.5" 7200RPM Internal Hard Drive ($54.43 @ OutletPC)
Video Card: MSI GeForce GTX 770 2GB TWIN FROZR Video Card ($324.99 @ SuperBiiz)
Case: Rosewill Line-M MicroATX Mini Tower Case ($49.99 @ Amazon)
Power Supply: Antec Neo Eco 620W 80+ Certified ATX Power Supply ($41.99 @ NCIX US)
Optical Drive: Asus DRW-24B1ST/BLK/B/AS DVD/CD Writer ($19.98 @ OutletPC)
Operating System: Microsoft Windows 8.1 (OEM) (64-bit) ($89.99 @ NCIX US)
Monitor: LG 23MP55HQ-P 60Hz 23.0" Monitor ($135.00 @ Newegg)
Total: $1195.47
(Prices include shipping, taxes, and discounts when available.)
(Generated by PCPartPicker 2014-05-22 09:53 EDT-0400)
Let me know if you have any questions on this.