I am looking for recommendations for a small boutique/B&B in Chania. We would love a room with a balcony in the town. We would prefer to not spend more than $200 US/night.

I was very pleased with the Porto Antico
https://www.portoanticochania.gr

We liked Pandora Suites in Chania. Owners were helpful and it's a few minutes walk from the many restaurants and shops at the harbour. The views from the breakfast area on the rooftop patio were amazing.

Pandora Suites Chania City: Chania, Chania City, Crete, Greece

Kay

I would recommend staying on or near Theotokopolou St. which is the most scenic and loveliest in the town. Lots of options for accommodations and I'm sure you'll find something great at your budget. I stayed at Jason Studios but it's a more budget friendly accommodation but filled with Old World charm.