Facing Plaza Victoria, Hostal Kolping (Francisco Valdés Vergara 622, tel. 0322/216306, kolpingvalparaiso [at] yahoo [dot] es, US$15 pp–US$19/28 s/d with breakfast) may not have kept up with the times, but its small rooms with shared bath and larger rooms with private bath are still more than acceptable.
At Hotel El Rincón Universal (Av. Argentina 825, tel. 0322/235184, US$19/30 s/d), rates include private bath and breakfast, plus access to laundry service, cable TV, and Internet. Its major drawback is its location on a busy avenue.
In a ramshackle building that’s slowly undergoing improvements, La Casa de Manuel (Abtao 576, tel. 0322/395411, casademanuel [at] hotmail [dot] com, US$15 pp with shared bath) has decent-sized rooms and a great rooftop terrace reached by a spiral staircase.
Also on Cerro Concepción, Casa Familiar Juan Carrasco (Abtao 668, tel./fax 0322/210737, US$15 pp–US$33 d with breakfast) has been one of Valparaíso [1]’s finest values, in a four-story house furnished with antiques and capped by a rooftop terrace with sensational panoramas of the harbor and coastline. Reached via Ascensor Concepción (Turri), it’s still a good choice, with an affable family atmosphere, but other nearby places have overtaken it.
In the flatlands of El Almendral, Hotel Puerto Valparaíso (Chacabuco 2362, tel. 0322/217391, www.hotelpuertovalparaiso.cl [2], US$26/34 s/d) is a remodeled century-old hotel with reasonable rates.
Owned and operated by a knowledgeable rival guidebook author, with a lively (but not rowdy) international atmosphere, Cerro Alegre’s Anglo-Chilean 
Hostal Luna Sonrisa (Templeman 833, tel. 0322/734117, www.lunasonrisa.cl [3], US$12–15 pp, US$30/ 37 s/d) is friendly and provides a fine breakfast. Rooms range from dorms to doubles with private bath, plus one spacious (and significantly more expensive) apartment with a loft bedroom, living room, kitchen, and enormous bath.
Immediately beneath the Lutheran church, friendly Hostal Gagliardo House (Beethoven 322, tel. 0322/459476, www.gagliardohouse.cl [4], US$15 pp–US$41 d) has one claustrophobic single and several more spacious doubles, all with shared bath. Nearby Hostal la Colombina (Concepción 280, tel. 0322/234980, www.lacolombina.cl [5], US$22 pp) has large rooms furnished with antiques, plus a restaurant that’s worth a look.
Cerro Bellavista’s cheerful and spacious Hostal Caracol (Héctor Calvo 371, tel. 0322/395817, hostalcaracol [at] gmail [dot] com, US$15 pp–US$46 d) has one dorm with shared bath and several doubles with private bath. It has large and comfortable common spaces, along with a book exchange.
Another good flatlands option is the deco-style Hotel Puerto Principal (Huito 361, tel./fax 0322/745629, US$37/47 s/d with private bath).
Links:
[1] http://www.moon.com/destinations/chile/-chilean-heartland/valparaiso
[2] http://www.hotelpuertovalparaiso.cl
[3] http://www.lunasonrisa.cl
[4] http://www.gagliardohouse.cl
[5] http://www.lacolombina.cl