It's good to have good price-to-performance ratio, but there is no need to undercut everyone else. Since then, you will get a lot of low quality guests that just want a place to crash but don't really care about anything else.
If you price it just high enough to avoid the undesirable guest(s), then they will respect the rules, and respect your place. They know they got a good deal, but it's not something from the bargain bin.