Most travelers will find lodging in downtown Milwaukee [1] much better than they may have expected, given the historic grace of many buildings (yet there are plenty of bargains in chain hotels for the budget conscious). The only real reason to locate yourself away from the city center is if you need a dirt-cheap place; for this, the farther away from downtown, the cheaper the room.
A good trick is to check the Milwaukee Convention and Visitors Bureau’s website (www.visitmilwaukee.org [2]) for constant package deals at local hotels, even in peak seasons.
Note that all rates given are a) what they themselves have provided and b) merely the lowest on offer during peak season.
Links:
[1] http://www.moon.com/destinations/wisconsin/milwaukee
[2] http://www.visitmilwaukee.org