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Cusco, the historic capital of the Inca Empire, offers a wide range of budget accommodation options for travelers eager to explore the breathtaking landscapes and rich culture of Peru. Hostels are particularly popular among backpackers, providing a social atmosphere and often featuring communal kitchens, which can help save on food costs. You can find dormitory-style rooms starting as low as $10 per night, allowing you to stretch your budget while meeting fellow travelers.

For those seeking a bit more privacy, guesthouses and B&Bs are excellent choices. These typically range from $25 to $50 per night and offer a comfortable stay with local charm. Many guesthouses include breakfast, which is a great way to fuel up for a day of exploration.

Another budget-friendly option is Airbnb, where you can rent a room or an entire apartment. This can be especially advantageous if you're traveling with a group, as splitting costs can lead to significant savings.

When choosing your accommodation, consider its location. Staying in the San Blas neighborhood not only gives you access to stunning views but also allows you to enjoy local artisan shops and cafés. It's a short walk from the main square, making it easier to catch buses to Machu Picchu or the Sacred Valley.

Be sure to check reviews on platforms like TripAdvisor or Booking.com to ensure you’re selecting a reputable place. Connecting with locals can also provide insights into the best budget accommodations that may not be widely advertised online.

Lastly, be mindful of the high season (June to August), when prices may surge. If you can, travel during the shoulder seasons (April to May or September to October) for more affordable rates and fewer crowds. With some research and planning, you'll find that Cusco has plenty of budget accommodation choices that won’t compromise your experience.