Alfama was a great location for me. However, one needs to bring ear plugs if you ever want to go to sleep before the Fado ends. You can lay on the couch and listen or go down to one of the many restaurants hosting the music. Everything you need (and more) is provided for a short stay where you don't require a washing machine; there for nine days, I washed little things out in the kitchen sink and they easily dried by morning.
This studio flat is the perfect size for a single traveler or a cozy couple. It is difficult to imagine a nicer place or or more considerate hosts: I was met where my airport transfer car let me off, helping me with my luggage up the alleyway to a quaint church square.