The easiest and cheapest option is probably staying with a home-stay, e.g. Kashmiri Homestay or Issue Homestay. In August 2012, this cost 300 Rs per night per person, including supper and breakfast, with very nice conditions. These home-stays are easily found once up in the main part of the village.
There is a government guesthouse on the right as you enter the village.
Balti Residency- a homestay run by Abdullah, and is in the side of the village after crossing the river. It's unmarked, and there are no signs, so it's best to ask. If you find the Mosque, you are close and someone will show you the rest of the way.
K2 Guesthouse- Run by an incredibly hospitable Balti family, K2 is the place to go if you're looking to get a taste of local Balti food. Owner Hussain Baig speaks great English, and is very knowledgable about the local history and culture. Reasonable prices and convenient location in the middle of Farol. Contact- 09419510276.
Maha Guesthouse- is very nice and situated on the side of the village before you cross the river Farol.
There is a tent camp on the right as you enter the village but it's quite expensive Rs2800 min..