Carnival is in February 5th to 8th. Carnival is high season here, so the prices go up at that time. Schedule your hotel, tickets to the Samba Parade and all activities ASAP, because the prices near February go crazy if the city is crawded with tourists. Now, nobody knows if the city will be empty or crawded with tourists, so the prices are still ok.
Best place for hotels: Catete, usually safe, where you'll find good hotels with best prices. Don't go to hostels or 'bed and breakfast', where you will pay more than most of the hotels in Catete.