Cheap and Union Square are mutually exclusive.
Try Becks Motor Lodge on Market close to the Castro.
It is exactly what you are looking for.
These hotels are near Union Square San Francisco .
Hotel 480 Union Square San Francisco http://hotels.americacheaphotels.com/Hotel/Hotel_480_Union_Square_San_Francisco.htm
Union Square Hotel San Francisco http://hotels.americacheaphotels.com/Hotel/Union_Square_Hotel_San_Francisco.htm
Fitzgerald Union Square Hotel San Francisco http://hotels.americacheaphotels.com/Hotel/Fitzgerald_Union_Square_Hotel_San_Francisco.htm
Ramada Inn Union Square San Francisco http://hotels.americacheaphotels.com/Hotel/Ramada_Inn_Union_SquareSan_Francisco.htm
Handlery Union Square Hotel San Francisco http://hotels.americacheaphotels.com/Hotel/Handlery_Union_Square_Hotel_San_Francisco.htm
Larkspur Hotel Union Square San Francisco http://hotels.americacheaphotels.com/Hotel/Larkspur_Hotel_Union_Square_San_Francisco.htm
Union Square Plaza Hotel San Francisco http://hotels.americacheaphotels.com/Hotel/Union_Square_Plaza_Hotel_San_Francisco.htm
Union Square Inn San Francisco http://hotels.americacheaphotels.com/Hotel/Union_Square_Inn_San_Francisco.htm
San Francisco Hotels http://hotels.americacheaphotels.com/City/San_Francisco.htm
the handerly hotel is very reasonable, not expensive really at all. Its right on union square and it is a decent hotel. The rooms are small, but I doubt you will spend a lot of time in there anyways!!
Stay wherever you find the cheapest (2.5 stars or above). To help you search, check out BookMe dot com. You can compare ALL the reputable travel sites, and save money. Good luck!
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