Our hostel was located in the Cannaregio area of Venice, which for us was perfect. Located only 10 minutes from the Train and bus stations, and approx 30 minute stroll to San Marco.
Unique Quality: The hostel was clean and tidy, set in a courtyard in a university. In the summer its quiet and they let you use the students kitchen area which is really handy!
The dorms are seperate male and female, but for 18Euro a night its a bargain.
Be aware that they do have a 0030 curfew and a lockout between 0930 - 1500, this can be a bit of a pain, they will not let you check in until 1500 - not even a shower!
Ostello Santa Fosca, Cannaregio 2372 – Tel. 041-715775. Magnificent hostel with a big kitchen, nice location in a quiet, tourist-free area, and spacious/social central courtyard. The staff speaks English moderately well, and they're pretty helpful in offering advice and directions. Rooms seemed generally to be triples or quads; beds were comfortable and linen was provided. The only qualm that I had with this hostel was that they segregated boys and girls into entirely different wings - but I guess that's not too shocking, considering that the hostel is a converted convent.
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Address: Cannaregio 2372, Fondamenta Daniele Canal, Venice, Veneto, Italy