Recommendations for where to stay in the Algarve? Also any good surfing there?

The best surfing is around Lisbon eg Peniche, rather than the Algarve.

There are some good surfing spots around the Aljezur area on the west coast of the Algarve.

There are several beginners surfing schools based in Lagos and they cover the beaches between Salema and Sagres.

Lagos is my favorite town in the Algarve but you likely need to book a place as soon as possible for June.
As Jennifer said, there are a number of places in the western part of the Algarve for surfing. I observed surfing in Luz and outside of Sagres. But, there is much better surfing north of Lisbon.

Sagres is the spot but not guarenteed waves. Big surf community there

Thank you!