There are now three or four backpack hostels on Caye Caulker. Tina's BackPackers Hostel is still the best right on the beach. Tina has just opened a new one over in the Bay Islands off Honduras on Roatan. Her dad Cap'n Ray Auxillou has Falconview Tourist Backpackers Adventure Hostel up in Cayo West. It is found by leaving the bus at the entrance to Santa Elena Town at EXIT 66 1/2 and hiking a half mile up to the suburb of Hillview on the slope of Green Parrot Valley. San Pedro has a 40 bed Hostel and there are rumored to be another one somewhere out Cayo West. Several of the places down in Toledo might be called hostels, but their rates are a bit higher. Falconview in Santa Elena charges $9 usa a night.
Belize is starting to get quite a few hostels for the budget traveler who doesn't mind sharing cooking kitchen and bathrooms for low cost and exotic locations.