Traveling to Chicago on a tight budget? Discover the top 12 best cheap hotels and hostels in Chicago near public transit, iconic sights, and great local food.Chicago, the legendary Windy City, is globally renowned for its stunning skyline, deep-dish pizza, world-class museums, and beautiful Lake Michigan waterfront. While luxury stays along the Magnificent Mile can easily drain your travel fund, the city is packed with surprisingly affordable accommodations. Whether you are looking for a vibrant, community-focused hostel in Lincoln Park or a budget-friendly hotel right in the heart of Downtown, Chicago has plenty of options to keep your wallet happy.We have scoured the city to find the most comfortable, well-located, and highly rated budget spots. From modern micro-hotels to historic lodgings, here is our comprehensive guide to the top 12 best cheap budget hotels and hostels in Chicago.1. HI Chicago HostelAddress: 24 E Ida B Wells Dr, Chicago, IL 60605Approximate Room Price: $45 – $85 USDLocation & Vibe: Located right in the heart of Downtown Chicago (The Loop). It boasts a clean, massive, and highly organized environment that caters to international backpackers, solo travelers, and large groups.Facilities: A massive communal kitchen, free daily breakfast, large social lounges, secure lockers, on-site laundry, and free daily city tours organized by the staff.Nearby Amenities: The Harrison Red Line CTA station is just steps away. A local 7-Eleven and a Target are right around the corner. You are surrounded by affordable delis and quick-service lunch spots catering to local office workers.Why it’s the Best Budget Location: It is practically impossible to find accommodations this cheap right next to Millennium Park, the Art Institute of Chicago, and Lake Michigan. You save incredibly on transportation because you can walk to almost everything.Check the latest price and information on Agoda: Click here to view on Agoda2. Freehand ChicagoAddress: 19 E Ohio St, Chicago, IL 60611Approximate Room Price: $50 – $95 USDLocation & Vibe: Located in the upscale River North neighborhood. This is a premium boutique design hotel that offers upscale shared dorms alongside private rooms. The vibe is trendy, hipster, and very cozy.Facilities: A highly popular award-winning cocktail bar (Broken Shaker) on the ground floor, a stylish coffee shop (Café Integral), comfortable lounge spaces, and beautifully designed wooden privacy bunks.Nearby Amenities: The Grand Red Line station is a quick two-block walk. A massive Jewel-Osco supermarket and a 7-Eleven are very close, and you are surrounded by late-night pizza slice windows and burger joints.Why it’s the Best Budget Location: River North is one of Chicago’s most expensive dining and nightlife districts. Freehand gives you an incredibly stylish, premium address for the price of a standard budget stay.Check the latest price and information on Agoda: Click here to view on Agoda3. Chicago Getaway HostelAddress: 616 W Arlington Pl, Chicago, IL 60614Approximate Room Price: $40 – $75 USDLocation & Vibe: Nestled on a quiet, leafy residential street in the affluent Lincoln Park neighborhood. The vibe is incredibly safe, relaxed, and community-driven, making it perfect for first-time visitors or longer stays.Facilities: Free hot breakfast, a massive modern shared kitchen, outdoor patio with BBQs, a pool table, guitar rentals, and very clean shared bathrooms.Nearby Amenities: The Fullerton CTA station (Red/Brown/Purple lines) is a short walk away. A Target Grocery and a 7-Eleven are nearby, along with famous Chicago deep-dish spots and affordable college bars near DePaul University.Why it’s the Best Budget Location: Lincoln Park is famously safe and beautiful. You are within walking distance of the free Lincoln Park Zoo and the beaches of Lake Michigan, providing tons of free entertainment.Check the latest price and information on Agoda: Click here to view on Agoda4. Wrigley HostelAddress: 3514 N Sheffield Ave, Chicago, IL 60657Approximate Room Price: $45 – $80 USDLocation & Vibe: Situated right in the middle of Wrigleyville, literally steps from the iconic Wrigley Field. It has a highly energetic, party-friendly sports atmosphere that is perfect for outgoing travelers.Facilities: Free daily pancake breakfast, a communal kitchen, an outdoor deck with a BBQ, dartboards, and free weekly pub crawls organized by the staff.Nearby Amenities: The Addison Red Line station is less than a block away. A Whole Foods Market and a 7-Eleven are a quick walk down the street, and the area is absolutely packed with cheap sports bars and hot dog stands.Why it’s the Best Budget Location: If you are visiting for a baseball game, a concert, or the nightlife, this is the ultimate location. Being directly on the Red Line means you can effortlessly travel straight into Downtown 24/7.Check the latest price and information on Agoda: Click here to view on Agoda5. Chicago Parthenon HostelAddress: 310 S Halsted St, Chicago, IL 60661Approximate Room Price: $40 – $70 USDLocation & Vibe: Located in the historic Greektown neighborhood just west of Downtown. It offers a very quiet, laid-back, and historic feel without the massive party crowds of other properties.Facilities: Free luggage storage, a cozy communal lounge, a shared guest kitchen, free Wi-Fi, and 24-hour secure access.Nearby Amenities: The UIC-Halsted Blue Line station is a few blocks away. A Walgreens and a local 7-Eleven are nearby, and you literally step outside into a street filled with amazing, affordable Greek bakeries and gyro shops.Why it’s the Best Budget Location: It sits perfectly between the Downtown Loop and the trendy West Loop food district. You get peace and quiet while being perfectly positioned for cheap eating and easy airport transit (via the Blue Line).Check the latest price and information on Agoda: Click here to view on Agoda6. Selina ChicagoAddress: 100 E Chestnut St, Chicago, IL 60611Approximate Room Price: $55 – $110 USDLocation & Vibe: Positioned directly off the world-famous Magnificent Mile. This trendy brand blends coworking space with boutique lodging, offering both private rooms and high-end community dorms for digital nomads.Facilities: High-speed Wi-Fi, dedicated coworking desks, a stylish common room, an on-site cafe, and plush, comfortable beds.Nearby Amenities: The Chicago Red Line station is very close. A Trader Joe's and multiple 7-Elevens are within a few blocks. Affordable fast-casual food is abundant near the Water Tower Place mall.Why it’s the Best Budget Location: Sleeping next to the Magnificent Mile usually costs hundreds of dollars. Selina gives you luxury-adjacent access to Chicago’s best shopping and sightseeing on a backpacker's budget.Check the latest price and information on Agoda: Click here to view on Agoda7. Ohio House MotelAddress: 600 N LaSalle Dr, Chicago, IL 60654Approximate Room Price: $80 – $130 USDLocation & Vibe: A classic, mid-century retro motel sitting squarely in River North. It offers a nostalgic, authentic, no-frills American road-trip vibe right in the middle of skyscrapers.Facilities: Free Wi-Fi, daily housekeeping, extremely convenient free on-site parking (which is incredibly rare and expensive in Chicago), and flat-screen TVs.Nearby Amenities: The Grand Red Line station is close by. A Jewel-Osco supermarket and a 7-Eleven are just down the street. It features a fantastic, affordable breakfast diner attached right to the building.Why it’s the Best Budget Location: The absolute biggest selling point is the free parking. If you are driving into Chicago, the parking fees at other hotels will destroy your budget. Ohio House saves you an average of $50 a day instantly.Check the latest price and information on Agoda: Click here to view on Agoda8. Congress Plaza HotelAddress: 520 S Michigan Ave, Chicago, IL 60605Approximate Room Price: $90 – $140 USDLocation & Vibe: A massive, historic (and famously grand) hotel sitting directly across from Grant Park. It feels like stepping back in time to the 1920s, offering faded luxury at a budget price point.Facilities: Multiple on-site restaurants, a historic bar, a fitness center, massive ballroom lounges, and fantastic views of Lake Michigan from select rooms.Nearby Amenities: The Harrison Red Line station is a block away. A Target Grocery and a 7-Eleven are right behind the hotel, and the South Loop is full of affordable student-friendly diners near Columbia College.Why it’s the Best Budget Location: You are staying on Michigan Avenue with an unobstructed view of Buckingham Fountain. It is the cheapest way to experience the grandeur of historic Chicago without booking a five-star resort.Check the latest price and information on Agoda: Click here to view on Agoda9. Travelodge by Wyndham Downtown ChicagoAddress: 65 E Harrison St, Chicago, IL 60605Approximate Room Price: $75 – $120 USDLocation & Vibe: Located in the South Loop, just off Michigan Avenue. It is a highly practical, reliable, and straightforward budget hotel aimed at cost-conscious families and business travelers.Facilities: In-room coffee makers, flat-screen TVs, free Wi-Fi, and a casual on-site restaurant serving hearty American breakfasts.Nearby Amenities: The Harrison Red Line station is quite literally outside the door. A 7-Eleven is on the same block, alongside a local Trader Joe's and fantastic cheap pizzerias and burger spots.Why it’s the Best Budget Location: It is an incredibly functional home base. It strips away expensive resort fees and gives you clean, private comfort right next to the train system, allowing for cheap, rapid exploration of the city.Check the latest price and information on Agoda: Click here to view on Agoda10. Best Western Grant Park HotelAddress: 1100 S Michigan Ave, Chicago, IL 60605Approximate Room Price: $85 – $135 USDLocation & Vibe: Situated slightly further south on Michigan Avenue. It provides a quiet, family-friendly atmosphere with modern amenities and excellent views of the Museum Campus.Facilities: An outdoor pool (seasonal), an on-site Italian restaurant, a fitness center, and spacious, updated rooms.Nearby Amenities: The Roosevelt CTA station (Red/Green/Orange lines) is exceptionally close. A massive Trader Joe's and a Jewel-Osco are nearby, along with multiple local coffee shops and 7-Elevens.Why it’s the Best Budget Location: It is the absolute closest budget hotel to the Field Museum, Shedd Aquarium, and Adler Planetarium. The proximity to the Roosevelt station means you have direct access to three major train lines.Check the latest price and information on Agoda: Click here to view on Agoda11. Found Hotel Chicago River NorthAddress: 613 N Wells St, Chicago, IL 60654Approximate Room Price: $55 – $100 USDLocation & Vibe: A stylish, boutique micro-hotel in River North designed for millennials and Gen Z travelers. It features a retro 1970s aesthetic that feels cozy, fun, and highly Instagrammable.Facilities: Shared and private room options, a trendy on-site karaoke lounge/bar, a casual coffee shop, and comfortable, modern bedding.Nearby Amenities: The Merchandise Mart Brown Line station is a few blocks away. A 7-Eleven and local grocery bodegas are nearby. The street is packed with iconic Chicago late-night eateries and cheap taco spots.Why it’s the Best Budget Location: You get the boutique hotel experience for a hostel price. The location allows you to walk to the Downtown Loop or party in River North without ever needing to pay for an Uber.Check the latest price and information on Agoda: Click here to view on Agoda12. Super 8 by Wyndham Chicago ILAddress: 7300 N Sheridan Rd, Chicago, IL 60626Approximate Room Price: $70 – $100 USDLocation & Vibe: Located far north in the Rogers Park neighborhood near Loyola University. It is a quiet, straightforward, no-nonsense budget motel situated right near the lakefront.Facilities: Free basic breakfast, free Wi-Fi, air-conditioned rooms, and very friendly staff.Nearby Amenities: The Jarvis Red Line station is very close by. You will find a local Target, a 7-Eleven, and numerous highly affordable, diverse international restaurants catering to the local university student population.Why it’s the Best Budget Location: If you want absolute rock-bottom prices for a private hotel room and don't mind a 30-minute train ride into Downtown, this is the spot. It is safe, close to beautiful local beaches, and surrounded by cheap student eats.Check the latest price and information on Agoda: Click here to view on AgodaInsider Tips for Budgeting Your Chicago TripPro-Tip: Chicago has one of the best public transit systems in America. To save the most money on your trip, always choose an accommodation near a CTA Train Station (the "L"). Buying a multi-day unlimited CTA pass is significantly cheaper than renting a car or relying on daily rideshares to get from your budget hotel to the main tourist sights!By booking one of these fantastic cheap hotels or hostels, you can explore the museums, eat the famous food, and enjoy the beautiful architecture of Chicago without breaking your budget. Safe travels!