The best area to stay in Santo Inácio is the central district, particularly around the main square, Praça Bom Jesus.
This area is the heart of the town, where you'll find most of the local amenities and a pleasant, relaxed atmosphere. The main church, Igreja Matriz Bom Jesus, is a prominent landmark here, and the surrounding streets have a selection of local shops, eateries, and practical services. It's a very walkable area, making it easy to get around on foot.
For couples looking for a quiet and convenient base, staying near Praça Bom Jesus is ideal. You'll be close to local dining options for relaxed evenings and have easy access to the main attractions of the town, such as the municipal museum and local craft shops. It offers a genuine feel for the town's day-to-day life.
Families travelling with children will also find the central district very suitable. The main square often has space for children to play, and being central means you're never far from your accommodation for naps or breaks.