Venice hotel rates can seem expensive, especially for students and other travelers on a budget. Not to worry--the Ostello Venezia, offers cheap accommodations in a waterfront location that's easy to reach from St. Mark's Square, the Piazzale Roma, or the railroad station by public water bus (Vaporetto). The Hostel is beautifully located in an ancient, refurbished grain store on Giudecca Island in the heart of Venice. Palladian churches, the Doge's Palace, the bridge of Sighs and the Peggy Guggenheim Collection are all within easy reach. The Youth Hostel has 260 beds and facilities include meals, common tv room, common rooms, tourist information, luggage store for members, lockers. Full hotel details
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In Venice’s Mestre, the Hotel Amba Alagi offers good value accommodation.
Ghetto Nuovo is within easy driving distance of the Hotel Amba Alagi. The centre of Venice is 20 minutes away by car. Complimentary internet is available, ensuring you'll have no trouble keeping connected while on the road. Venice Marco Polo Airport (VCE) is within a 30 minute drive from the hostel. 
The small family-run and recently awarded Doni hotel enjoys an ideal location in Venice, a 3-minute walk from St. Mark's square and close to all of the city's major points of interest. The property is housed in an ancient 18th century palace in a Gothic-Venetian style, facing the Rio del Vin canal, where it is possible to hear the serenades from the gondolas. The Doni family lets guests breathe the authentic air of the city and will make all visitors feel at home in the most beautiful city of the world. Wireless Internet access is complimentary. 
Located in Castello, the Art Flashpackers is a perfect base while in Venice with San Rocco, Palazzo Papadopoli and San Cassiano all within walking distance.