Monaco is a fascinating little place that is definitely worth a trip if you are in the area. At only 2 square kilometers and with only 35,000 residents, it’s no surprise that there are very few hotels and no hostels at all.
If you do want to stay in a hotel in Monaco it’s going to cost you, though a few of them do have rooms that are only a bit higher than similar rooms in nearby France. Food and drinks are also on the pricey side, but not unreasonably so considering everything else.
If you want to see Monaco on a budget then your best bet is to stay in Nice, France, which is only a 25-minute or so train ride away. There are some cheap hotels in Nice, especially if you don’t need to be right near its gravel beach. Then you can take a cheap train ride into Monaco in the morning and head back in the afternoon or evening.