Around Berchtesgaden/Salzburg area my favorite place is a little Guest House/Farm House called Gotzbauernhof in Unken, Austria. It is South of Bad Reichenall, SW of Berchtesgaden about 15 to 20 minute drive. It is very cheap and you really get a feel for the locals in the area. The host Monika Vitzthum is wonderful and very nice. You are in a real farm in the mountains and my wife and I both agree this was the most fun place to stay on our 2.5 week trip to Europe.
Where to start, there are little kitties, chickens, goats, cows all over, but it doesn't smell like a farm. The room is first class, we stayed in the Turnkammer room for $22 euros per night per person, so like $60/night. There is an old cellar in the basement of the house where she has wine and beer on the honor system. So you just grab beers and tell her how much you drank, it is stress free and wonderful. The people whom stay there are really nice and regulars. For example we met an older couple from Holland... more