The atmosphere at Andarilho is very friendly and easy-going. The location is very convenient for the tourist attractions, the lovely Ribeira (riverside) and a variety of drinking spots and restaurants. And finally, the rooms are kept in good condition, offering personal lockers for your belongings. There are some problems with the upkeep and cleanliness of the public facilities, but hopefully that will get better as the owners become more experienced.
 
The place naturally has a very young atmosphere about it, so you could easily find people to travel around with. The place is actually run by travelers who have stopped over for a while to save up while keeping in the backpacking mood. Last but not least, outside there is a large garden in which a barbeque set is placed for visitors to enjoy ( a very nice touch).

In short, as far as budget and independent traveling goes, this is a very good option.

As budget options may tend to vary in quality, adding your own review of the place, for the benefit of other travellers, is especially important. So, please add comments bellow or rate this budget accommodation. 

Price Range: 10-30€
Rooms: dorms 6-10 beds each
Address: Rua da Firmeza 364, 4000 Porto, Potugal
Tel/Fax: (+351) 222-012-073
http://www.andarilhohostel.com/