There are many guesthouses in the small village. Those further from the dock are a bit cheaper. Many guesthouses are open only during the busy summer tourist season.
Pousada Pôr-do-Sol
Nova brasilia, 041 3426 8009. from the dock, walk straight inland to the other side of the island, less than 5 minutes' walk. clean rooms and a nice restaurant attached.
Pousada Girasol
Farol da rochas, 041 426 8006. 5 minutes walk south of the dock area. open year-round. decent breakfast.
Pousada Ilha do Mel
Praia do farol - nova brasilia, +55 41 3426 8065, (http://www.ilhadomelhostel.com). the very simpatico owner charles speaks fluent english and several other languages. attached they have a cybercafã© that serves great coffee, cakes and snacks, plus the rooms are very comfortable and the guesthouse is right close to the best beaches of the lighthouse area. they also have a huge book exchange with over 400 books and a tobacco shop with outstanding cigars.