Luke and Sheila run a nice hostel up in Santa Teresa and it was great being there for more than 2 weeks during the Olympics. As a hostel it's very basic - free wifi, showers, bunk beds and breakfast of toast, ham, butter and fruits everyday, so you did feel like the price you were paying was a tad on the higher side - but I believe the prices had been raised by all hostels during the Olympics.
The neighbourhood is lovely to walk around during the day with some great café's, bars & restaurants which have a very casual vibe to them. However in the evenings, once it gets dark, it is not the safest place to be walking out in which is such a shame and information on that might have made me change my decision on whether I should take up this place or not. After dark - going or coming back to the hostel outside of the immediate vicinity, was totally dependant on Uber without which you might as well be locked in - but I guess that's true for Rio now. I however had a great time on account of the people I met and courtesy the Olympics it was a full house everyday.
Luke and Sheila did take care and helped a lot in understanding how to get around the city to the different venues for the Olympics and were accessible by phone even if they weren't in the hostel all day. I had a cast on my left hand when I came into Rio and both Luke and Sheila went out of their way to help me find a clinic in which I could get it checked.
So ya, I enjoyed myself a lot and that's primarily because of the people you meet, both guests and hosts alike and not so much for the physical place.