American Dream Hostel is a very good choice for people who are visiting NYC the first time. Reasonable priced in an awesome location. Just two blocks away from 23rd street.
Many attractions are reachable by foot. Loads of bars, restaurants, supermarkets and whatever you need close by.
Facilities get cleaned many times each day, never saw em filthy at all.
Rooms are kind of small (well.. for this price in NYC it's more than enough, as well as you are only there to sleep) and if you get a room to the street go get some ear plugs, it's really a city which never sleeps (or let you sleep).