Single rooms with shared bathroom for only $5 a night at Hostels.

Bookworm Dali Guesthouse: 359 Renmin Road, corner of Renmin Lu and Ye Yv lu, Dali Old Town.
As long as you are prepared to commit for a full month, a double room for US$6 a night could be yours. With your own bathroom! See HostelWorld for details.

Five Elements Hostel: .
Dorm beds for as low as US$2 a night!

Sky and Sea Lodge Lakeside at Dali says: "We collect foreign beer bottle caps. If you bring us a bottle cap which is not already in our collection we will give you one bottle of Dali beer in exchange. We only take caps which are in excellent condition; i.e. not bent or scratched, and brand names etc. must be clearly legible. Maximum exchange per person: 2 bottle caps."