We stayed in a Miguel's House, a small apartment on the outskirts of the Alfama district. We found a thoughtful and very courteous host. The apartment overlooks a delightful square with a vegetarian restaurant.
The apartment is on the third floor and goes up a very steep staircase so it may not be suitable for older people or those with vertigo or joint problems.
If you want immerse yourself in the autentic Lisbon this is a perfect location.