Pensión Iberia has an excellent location right on the Spanish built plaza (roundabout.) It's housed on an upper floor of a protectorate era building, above a bank.
They have quite basic but clean, bright rooms. I had room 11 which had a balcony and an amazing view over the plaza and the mountainside covered in houses.
There were 2 single beds, a sink, table and wardrobe. Annoyingly there was not one plug socket in the whole room. They have wifi, some of the time. The squat toilet was clean. No soap to wash hands. Bring your own paper.
This was a 100dr/£7.50/$12. I could have had a room for 60dr with one bed and no view.
The family were very friendly and invited me to watch the Morocco match with them. They fed me cakes and gave me tea. A son of the family could speak quite good English. Tried out my bad French with the rest.
If you can get room 11 and don't mind it basic this could be the place for you.