Oh sorry, I was just joking around. There are plenty of good hostels in SF, I would stay in the North Beach area and stay away from the tenderloin, SOMA is also a funky but nice area.
Castro. The queers watch each other's backs for hate crime, it's a kind of 'neighborhood watch' that keeps assaults down. SOMA you can still get your ass mugged, and don't go down by the waterfront alone.