Where to Stay in Faro
Cheapest areas, hostel districts, and budget tips
Quick Answer
Stay in Faro Centro (City Center)
Provides more affordable accommodation and dining options, with good access to transport.
See full Faro neighbourhood guideTop 3 Areas to Stay in Faro
Most affordable areas with the best value accommodation
Faro Centro (City Center)
The bustling commercial heart of Faro with shops, cafes, and local life.
Our top picks in Faro Centro (City Center)
Old Town (Vila Adentro)
Historic charm with cobblestone streets, ancient walls, and a relaxed, picturesque atmosphere.
Our top picks in Old Town (Vila Adentro)
Marina Area
Lively waterfront with modern amenities, restaurants, and access to boat tours.
Our top picks in Marina Area
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Neighbourhood Comparison for Backpackers
| Neighbourhood | Budget | Vibe | Best For |
|---|---|---|---|
#1Faro Centro (City Center) | Budget | The bustling commercial heart of Faro with shops, cafes, and local life. | solo travelersbudget |
Old Town (Vila Adentro) | Mid-range | Historic charm with cobblestone streets, ancient walls, and a relaxed, picturesque atmosphere. | first-timerscouples |
Marina Area | Mid-range | Lively waterfront with modern amenities, restaurants, and access to boat tours. | first-timersfamilies |
Find budget-friendly hostels in Faro
Affordable stays in the best backpacker areas
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Tips for Backpackers in Faro
Book Hostels with Kitchens
Self-catering saves significant money in Faro. A hostel with a good kitchen can cut your food budget by half.
Walk Where Possible
Many city centres are walkable. Save transport money for longer journeys and use your feet for neighbourhood exploring.
Find Free Activities
Free walking tours, museum free days, parks, and markets are everywhere. Ask hostel staff for the best free experiences.
Carry a Water Bottle
A refillable bottle saves money and plastic. Many cities have free water fountains; check the local tap water safety first.
Find free walking tours in Faro
Budget-friendly ways to explore
Best Neighborhoods for Backpackers
Ranked by relevance for backpackers visiting Faro
Faro Centro (City Center)
BudgetThe bustling commercial heart of Faro with shops, cafes, and local life.
- +Convenient for transport links
- +More local feel and prices
- +Good range of shops and services
- -Less picturesque than Old Town
- -Can be noisy
Old Town (Vila Adentro)
Mid-rangeHistoric charm with cobblestone streets, ancient walls, and a relaxed, picturesque atmosphere.
- +Beautiful historic architecture
- +Abundance of traditional restaurants
- +Central and easy to navigate
- -Can be very quiet at night
- -Limited modern amenities
Marina Area
Mid-rangeLively waterfront with modern amenities, restaurants, and access to boat tours.
- +Scenic views and pleasant promenade
- +Good selection of seafood restaurants
- +Gateway to Ria Formosa boat trips
- -Can be tourist-heavy
- -Slightly less authentic than Old Town
Daily Budget (Budget)
EUR 55/day
Hidden Gems in Faro
Lesser-known spots the locals love
Mercado Municipal de Faro
FREEExperience the authentic buzz of local life at this vibrant market. You'll find fresh produce, local cheeses, and an incredible array of fresh seafood, perfect for a culinary adventure.
Armazéns do Mercado
Located just behind the main market, this area houses several small eateries and bars where locals gather. It's a fantastic spot to sample tapas and regional specialties in a relaxed atmosphere.
Our Top 5 Favourite Tours in Faro
Hand-picked guided experiences you can book in advance on GetYourGuide.
Faro Walking Tour: Highlights & Hidden Gems
Discover Faro on foot with a local guide who knows every backstreet and story. You will cover the must-see landmarks and stumble upon places most visitors never find.
View Tour Details
Faro Food Tour: Street Food & Local Favourites
Eat your way through Faro with a local foodie as your guide. From bustling markets to tucked-away restaurants, taste the dishes the city is truly known for.
View Tour Details
Best of Faro: Skip-the-Line Top Attractions
Skip the queues and get straight into Faro's top attractions with pre-booked access. An expert guide brings each site to life with stories and context you would not get on your own.
View Tour Details
Day Trip from Faro: Scenic Excursion
Escape Faro for the day and explore the stunning surroundings. Transport, guide, and itinerary are all sorted so you can relax and enjoy the scenery.
View Tour Details
Faro Cultural Experience: History & Traditions
Go beyond sightseeing and connect with Faro's living culture. From hands-on workshops to historic neighbourhood walks, this is the side of the city most travellers miss.
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1 area to be cautious about
Read our full safety guide for Faro
Backpackers in Faro: FAQ
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