Accommodation
Hostels
Rede Nacional de Turismo Juvenil runs the only real hostel in town, the Faro hostel. This is located just outside the old town centre on the Rua da Policia de Seguranca Publica (PSP). If possible pick up a map from the tourist information office in the town centre. Otherwise, head for the Praca Dr Francisco Gomes and check the route on a map there. The hostel itself is in an institutional-looking building next to the park and just past the police station. This is cheap, but has all the downsides of HI hostels everywhere.
In summer several pensiones offer cheap shared accomodation on the roof. Ask for details at the tourist office