There are thousands of budget hostels, guesthouses, motels, inn etc. The prices range from 40RMB/bed in dormitory to around 200RMB/standard room.
Here is the most popular ones:
Flowers Youth Hostel.Great youth hostel with friendly English-speaking staff. Large communal reception area with sofas, which doubles as a lounge and restaurant. Free pool table and DVD room. Three internet terminals at ¥1 for 10 minutes. Dormitory ¥40, Singles ¥55, Twin ¥90, discounts for YHIF members, double prices during Chinese holidays.
Backstreet Youth Hostel.Terrific and newly opened hostel in central location. Rooms bigger and fresher than in Flowers Youth Hostel, though staff at FYH are more helpful. Internet service in the lobby (2 PCs). Also has a good selection of hotel-like single ¥110 and double rooms. Will book many excursions but check prices.
Wada Hostel. A hostel owned by backpackers, for backpackers. A place that understands that everyone has their reasons to travel. Their philosophy is simply:Offer amazing experiences, make it safe, keep you informed, and make it real fun.