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Hi Jane
The music festival is great, I was there 2 years ago but i didn't stay in Zambujeira. I don't recommend that you stay there, because it's a small vilage and with the thousands of people that come to see the festival, it can be a little bit crowded. Anyways, if you enjoy the big crowd, you can camp in the festival area, they have a few facilities. It's a little chaotic, noisy but if that's your thing, go ahead :)
If you like cheap and clean, you have a great youth hostel in a place called ALMOGRAVE. This is a small village 20 km from zambujeira, with an amazing beach. Here's the link:
Pousada de almograve
I've seen the prices and for August, for a double with bathroom expect to pay 43 €.
Reservations: reservas@movijovem.pt
If you choose to stay at Zambujeira, you have pricey accomodations and more familiar ones. These last ones are usually good for the price: double bed, w/bathroom, very cozy and familiar style. I got you the names and phone numbers from a site. No guarantee that they speak english, but you can try!
ZAMBUJEIRA DO MAR
EXPENSIVE
Monte da Alcaria do Clemente ( Turismo Rural )
Apartado 5
7 630-908 S. Teotónio
Tel. 283 958 628
Fax. 283 958 659 Quartos: 9
Piscina
Monte do Sardanito de Trás (Casa de Campo)
Quinta do Sardanito de Trás
7 630 Zambujeira do Mar
Tel. 912160020
Fax. 283 961 325
Site: www.quintadosardanito.com Apartamentos: T1, T2, e T4
Piscina
Herdade do Touril de Baixo – Turismo Rural
7 630 – 734 Zambujeira do Mar
Tel. 283 950 080/1
Fax. 283 950 088
Site: www.touril.pt
e-mail : touril@touril.pt Quartos: 9
Piscina
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CHEAPER
Pensão Onda Azul (Res. 3.ª)
Rua da Palmeira, lote 1
7 630-794 Zambujeira do Mar
Tel. 283 961 450/ 283 961 451 Quartos: 9
aceita animais
Pensão Rita (Res. 3.ª)
Lote 6 e 7, loteamento municipal
7 630-794 Zambujeira do Mar
Tel. 283 961 330 Quartos : 17
Hospedaria Rosa dos Ventos
Quinta João de Deus – lote n.º 2
7630-786 Zambujeira do Mar
Tel.: 283 961 391 Quartos
tem acessibilidades para deficientes