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Happy Family Hostel Very close to the train station, basic but clean rooms, balcony with good views over the city, spacious living rooms, TV and air con. John Lee, the owner, is super friendly and will go out of his way to make sure you have everything you need.
Taipei Hostel This one claims to be the oldest guesthouse in the city. What makes it especially attractive is the fact that it's only 2 minutes away from Shandao MRT station. Rooftop balcony, great place for socialising, free ADSL and kitchen. A bit loud sometimes.
World Scholar House Not as close to the action as the two previous places, but still a decent option if a cheap roof is what you need. Taipei Hostels Map
More Taipei Information:
Return From Taipei Hostels to Taiwan Hotels.
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