Josef Novotny has a renovated top floor of his home with three bedrooms and
bath, which he rents out, throwing in a huge breakfast each day. 2 years
ago he was charging $20 U.S. per person. You might contact him for current
rates. He also provides airport pick up and delivery for a small cost.

His house is NOT in the heart of town but in a lovely neighborhood beyond
Prague castle, about 20 minutes by tram to central Prague. Keep in mind
that Prague is one of the noisiest cities in Europe and a central location
means lots of interruptions to sleep, with motorcycles speeding by and
garbage pick-up in the wee hours (they grind it up on the spot). I would
NEVER stay anywhere near Wenceslas 'Square myself.

Check him out: [email protected]

... Keep in mind
    > that Prague is one of the noisiest cities in Europe and a central location
    > means lots of interruptions to sleep, with motorcycles speeding by and
    > garbage pick-up in the wee hours (they grind it up on the spot). I would
    > NEVER stay anywhere near Wenceslas 'Square myself.
    >
    > Check him out: [email protected]

last year while in Prague, we at stayed at the Sax Hotel in MalaStrana
and loved it. For what its worth, it's very close to the American
Embassy, but we walked the streets without concern at 3:00 AM. It may
cost a little above what the extreme budget minded traveler would be
willing to spend, though personally, I won't even bother searching
anywhere else the next time I visit. The place was perfectly located,
Clean, extremely quiet, comfortable, with views and a large, hearty
breakfast.