Can anyone suggest some good cheap accommodation options? I can see most hotels are over $30 USD a night
The farther south you get from town, the cheaper accommodation gets.
I've stayed in Pearl Ngwe Saung, which offers bungalows of 2 categories right on the beach. The cheaper option is $30 for 2 people, the more expensive $40 for 2 people (December 2013 prices). Nothing fancy, very basic, no wifi at all and no electricity from 6 a.m. to 6 p.m., but at least its just steps away from the beach.
This is the cheaper option (the huts in the middle):