I opted to rent a hotel room here and ended up with a two room "suite" for about $30/night. I'm an old guy and while I was older than most of the other guests, had no problem having great conversations with my fellow travelers.
The hostel/hotel is located in an alley (Isadora Duncan Place) off a main street. The area is well lit at night and seems safe. There are neighborhoods not too far away that are not safe at night, but this is not one of them.
Public transportation (Muni bus, tram and cable cars) are close by, but I mostly walked. It's in a great location, just a few blocks from Union Square.
Breakfast is basic with decent coffee, rolls, peanut butter, etc.
Be aware that the Adelaide only takes cash. I talked to one young traveler who was doing some work for the hotel in return for her weeks lodging.
This is mostly an international crowd.
Unique Qualities: I got free wireless internet access from my room, I believe courtsey of someone who lived in the apartment building across the alley.
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Theme: Hostel
Comparison: least expensive
Prices: US$20-40
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Address: 5 Isadora Duncan Lane, (Formerly Adelaide Inn), Sa