We stayed for a week in Villa Ilios. It is approx. 10mins away from the Airport- but we took the taxi. We wanted to get the bus but the intervals of it's arrival is always 1hour, and waiting for that long is tiring (Beware of the taxi drivers- if you can get it cheaper- get it.). Vill Ilios is run by a family. The Family were nice and very accomodating. The place was always cleaned and for it's price - it's actually perfect. The Hotel is probably 10-15minutes walking distance from Fíra. And from there on is where you can get the main Bus. But nearby the hotel were also a bus top, shops, bakerys, resto, and even a supermarket. Well, you can find a mini market everywhere.
Point is, it is worth staying there. And you are near the center!