Pretty much all of Lisbon is good. It just depends on your vibe. This article will give you a better idea as to what the best neighborhoods in Lisbon are.
If you want to get the old city, you will want the Alfama,
If you want to party, you will want Bairro Alto.
If you want more swanky stuff, Chiado or Principe Real.
If you want "real Lisbon" then you will want to try out a more residential neighborhood like Campo De Ourique or Avenidas Novas - these are not touristy at all, some may say they are boring, but I think they're great if you're not just looking to see the monuments.
As for where to stay, that also depends on your taste. I have a list of the AirBnBs I stayed at in Lisbon that I loved.
I have not stayed at the Chafariz del Rei, but it is lovely and highly rated. Pricy though.
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