Befallen and Mistmoore are both good. Highhold would likely be the best choice but due to it's popularity but it can be difficult to find a spot or get in a group there. Definitely worth it however. If you don't mind a walk or can manage a port you can stay at the giant fort in Warsliks Woods from around 20 to 35. The giants there drop weapons that can vendor for 12-43plat along with a tunic that vendors for about 63plat. The only drawback is that those items have a lot of weight to them, worth it however if you can vendor and/or bank someplace nearby such as the Overthere. Usually you can find others at the giant fort as well more than willing to group so you may never need to fight alone. Another incentive to head to that fort would be the sought after forest loops. Being nonlore and giving +3 to STA/DEX/WIS make them good paladin earrings.
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