We stayed one night at Francesco and Danieles place, which is a cute little apartment right in Palermos old town. It has a cute little balcony and provides everything one needs for a short stay. It is located in an old house so it is not overly clean or quiet. If you like to experience the loud and busy nights of Palermo this is definitely a good place to stay.
Daniele and Francesco were good hosts and were helpful with some questions we had and relied very fast.