Our block where we stayed.
You can rent your very own Machiya (traditional Japanese house) in Kyoto for a reasonable price. We loved the one we stayed in it was lovely and centrally located. We wished we had a least another two people sharing the house with us since it was quite large. It was still cheaper than any hotel or Ryokan. We had a huge kitchen to make our own food if we wanted to, there were markets really close by too, including Nishiki Market which is a huge outdoor covered food market in Kyoto to by your ingredients for a try at Japanese cooking,helpful in saving money if you are on budget too.
The one we stayed in was called Maeniiya, it was lovely except for the construction next door. This was not the owners fault they actually gave us a discount on the house because of the unexpected construction noise. The house was on a sweet quiet cobblestone street that only pedestrians or folks on their bikes. It had a washer/dryer too which comes in very handy, plus a mini garden and most important a computer with internet!
Master bedroom, there's a second room with the computer which can have more futons put in.
Kitchen (birds eye view)
Shower and bathtub (toilet has it's on room)
Family room (living/dining)
The front of our Machiya