I highly reccomend Verde Camp cottages. The dewllings are great but the location is fantastic.
Our "casita" was clean, comfortable, and well decorated with local artwork. It came with a comfortable bedroom, great little kitchen and roomy closet space. In general, this property has that old Austin feel that you only get in the South Congress area.
Being in the South Congress area, you are walking distance to great food, shopping, and live music. If you want to do the downtown thing, a cab is about $12-$15 for two.
We plan to go back ASAP - I highly reccommend this place.