I get asked all the time 'where can we go and rent a 'cottage' or what is the equivalent of a B&B in Israel?
In Israel, these are known as a Zimmer. They can be B&B, honeymoon type couples get aways, family holiday rentals etc....and they come in all shapes and sizes.
The general populace makes pilgrimmage to the north of the country in the summer to the Galilee and Golan for the wonderful mountain air and breeze. Take the time to visit Israel's award winning wine country, Golan, Dalton, Tepperberg, Tavor and my personal favorite, Tishbi wineries. On Mt. Tavor visit the Marzipan museum with the kids, visit the ancient hot springs of Tiberias and take a jeep to the waterfalls of the Banyas.
In the winter they usually head south to the Dead Sea, Eilat and the Negev dessert, this is why Masada was Herrod's winter palace. Qumran, Ein Gedi nature and wildlife reserve, the Air Force museum near Beer Sheva. So much to see, in such a small country.
It can be a much more authentic way to see the country then a hotel. Many Zimmers are run by families and you are treated as part of the family, breakfast included. Its usually more reasonable to boot.
No matter when you visit, there is a Zimmer with your name on it.