My hostel was located off St. Catherine's, right at the start of The Village which is one of the many nightlife districts in Montreal. Maybe it's because I live in New York and used to some craziness, but it didn't bother me at all to be in the middle of the hustle and bustle. I never felt unsafe at any hour of the day and was so close to everything I wanted and needed.
The hostel itself was very nice; it got fantastic reviews online and those were well deserved. It was clean, the staff was friendly and helpful and they did fun activities every night. The people staying there are super friendly and approachable, and I quickly made friends as most were traveling alone as well. If you are looking for a budget stay in Montreal but still want to enjoy safety, cleanliness and a central location, stay here!