i stayed here:
Youth Hostel Zermatt
Staldenweg 5
3920 Zermatt
tel. 0041 (0) 27 967 23 20
fax 0041 (0) 27 967 53 06
mail:
zermatt@youthhostel.ch www.youthhostel.ch/zermatt
Unfortunately hostels in switzerland are not as cheap as other countries, but generally speaking they are good quality. YH Zermatt was clean and some rooms had a great view. If i remember correctly it was 60chf per person a night.