I would highly to recommend Jose Edoardo’s place! Great location in the middle of Alfama, with plenty of bars, cafe, and restaurant around. Easy to move from there to the other attraction. Edoardo has been really kind and gave us lots of suggestions and information about Lisbon. The apartment was clean and tidy but really small, it was good for us but just something to keep in mind in case you wish a bigger place.
Overall is a great place!