This excellent hostel is housed in a charming old mansion and has tons of Uyghur atmosphere, friendly English-speaking staff and a charming gazebo in the courtyard that is great for hanging out. The gender-segregated dorms and one private room share the communal bathrooms and squat toilets, while extras include laundry (¥10 per load), bike rental and a book exchange.
The hostel is on the northern edge of a bizarre set of concentric streets that form a giant hexagon, which at least makes it easy to find on any mapping app. It's a 10-minute walk from the bus station: turn left onto the main road and then turn left onto Gongren Lu, then take the third left and keep going until you find the hostel on your right.