Have stayed at the traditional B&B in the area. Great wooden houses, reminiscent of the Austrian Alps, offering never-ending breakfasts. They are fantastic...and expensive.
A friend reserved a room for us at this circa 1980s, two-story, 'motel'-style, lodging located in the main road crossing Oxapampa. Efficient small rooms, good mattress, plenty of hot water, cable TV, lovely gardens (some chickens and roosters in the back), parking, and very friendly owners. The city is generally quiet and we had a good-night-sleep. But Oxapampa rises up with sunlight, so sleep early.
The greatest surprise was returning at night and seeing all our pajamas neatly folded on top of the bed, next to fresh towels. You barely saw the cleaning crew, but their job was impeccable.
The daily rate was about $20--a bargain for the area, as well as for the cleanliness and facilities.