There are some very definite boundaries in Ho Chi Minh City when it comes to accommodation. Most budget travelers lay their heads in the Pham Ngu Lao area of District 1, while those with even mildly deeper pockets head downtown, nearer to the river. However, there are several out of the way spots worth checking out.

The quiet neighborhood on the market side of Tran Hung Dao Avenue offers several options in the $10-$20 range. To find this neighborhood from Pham Ngu Lao, simply cross the main street (Tran Hung Dao) and turn left.

Cholon, south of District 1, is another viable option. This area has a busier feel and lacks some of the gentrification taking place in District 1, but makes up for it with more personal feel. To reach this area, simply turn right from Pham Ngu Lao onto Tran Hung Dao.

The area around Nguyen Trai, across the traffic circle from the New World Hotel, has some budget guesthouses as well as longer-term accommodations favored by expats. There is a grocery store and plenty of good restaurants in this area.

District 3 (between the airport and District 1) offers some good options. Again, long term residents, such as English teachers and NGO workers favor places in this area around Vo Thi Sao and Pasteur Streets. Again, there is an array of local eateries in this area. You can expect to spend $15-$20 per night here.

Of course, Pham Ngu Lao offers a well-known setting, and, with rooms costing around $10 (with cheaper available to those who search persistently), it is the best bet for most travelers. However, this area has a scene similar to Bangkok’s Khao San Road, although not quite as big. To find a more local feel, check some of the other neighborhoods above. Both the Nguyen Trai area and the neighborhood directly across Tran Hung Dao offer easy access to the amenities of Pham Ngu Lao while providing a bit more authentic experience.

There are some reasonable accommodations to be found downtown, providing you are willing to wander the side-streets a bit (which can be a joy in an of itself). Some of the hotels off the main drag, though larger than guesthouses, offer cheaper rates from time to time (especially during rainy season).

The tourist areas of most cities in Asia offer the convenience of cheap food, accommodations, and endless tour-booking possibilities. However, staying outside these areas can provide a more authentic experience.