Faro feels like a small city with big skies. Slice of old town cobbled streets. Lots of seafood spots and a slow, friendly pace. Summers get hot and dry. Winters are mild and green. Most travellers enjoy the beach trips to the nearby islands and the chill evening walks by the marina.
For digital nomads it works well. It is cheaper than Lisbon but not tiny cheap. Good cafes with solid wifi. A few coworking spaces and a steady fiber connection in town. I once jumped into a beach volleyball game at Praia de Faro after seeing folks play on a weekend. Little moments like that make it feel local.
Things to do are simple and fun. Ferry rides to deserted islands, cycling along salt pans, tapas and sunset drinks. The expat and student crowd make it easy to meet people. Arguably not the best if you need nonstop big city life. For some, this calm is exactly what they want.