El Greco
Google
This Hostel receives a 5 stars from me, though I will also be honest about my stay.
If you're a needy traveler, who needs their own space, who is a light sleeper and needs long warm showers, this is not the place for you.
The vibe was very youthful, and the volunteers were very kind and attentive. Me and my group made great friends at the hostel and the breakfasts were nice.
They have planned events and tours for cheap, you could really good a good insight into the area just through their built in schedule.
This place is friendly to everyone, and there was even a very cute dog that would hangout in the hostel. The rooftop was the crown jewel, it had little nooks with hammocks, an affordable bar, and the bartender was incredibly nice (shoutout to Vic!)
Though beware, if you can't handle what I said above. There were nights I needed to use earplugs to go to sleep due to rowdy people. There were times the dog would get stuck on the top step and bark to be let down. Oaxaca has a water crisis so the showers must be used sparingly and you need to use bottled water or a dedicated tap to brush your teeth if you're a foreigner and want to avoid travelers diarrhea.
For the cost, experience, and people-- the down to earth experience me and my friends had here, there is nothing more I could've asked for staying for my first time in Oaxaca.