We are going to Europe in October and need help finding hotels in Munich and Zurich preferably under $85 US, any suggestions?

Check out King's Hotel in Munich. I paid more than you indicate, but I believe they may have cheaper rooms.It is a new hotel (remodeled castle) within walking distance of center of city main plaz. Breakfast is included in price. Very nice management. On internet: www.king-group.com. Good luck.

Look in the Michelin Red Guide. In Munich, both as tourists and on business, we have stayed at Hotel Schlicker on Tal Strasse, only a stone's throw from Marienplatz, the Glockenspiel, and the Vicualienmarkt. It's a little place that extends back from the street; the quieter rooms, of course, are in the back annex. In Zurich, you have a problem, but not a big one. In the bahnhof (rail station) there is an excellent tourist accomodations desk where they can find you a good place in a flash, maybe even in the private home. Everything there can be reached by streetcar. If you get a chance, take the ferry boat down the lake to Rapperswil for lunch and back. The big hotels are crammed with guys on their expense accounts, but you might try the Hotel Bellerive au Lac; small, recently refurbished,and not catered to by the banking crowd. Again, get prices from Michelin Red Guide. To save $$$, stay in the Old City, on the other bank of the river away from the business district. Zurich is pricey, but the Old City has lots of places to stay and eat on the cheap.

Don't stay at the Hotel California in Zurich, badly run down and not very friendly staff. I booked through the tourist office in the train station. However outside the office in the main part of the station is a board advertising vacancies and a telephone that hooks you up to the pension or hotel you dial. Next time I'll take my chances that way.
Also inquire if your room faces the street. In the old part of the city the streets are narrow and noisy with people visiting pubs and nightspots.

thank you all for your responses, please feel free to leave any more tips. Thanks

Stay at the Acanthus Hotel at Sedlinger Tor. A great value, under $100, good breakfast and transportation links all over town. Have dinner at Weinhaus Neuen within walking distance. One of the best in Germany and not at all expensive, in my opinion.

We stayed at the Hotel Ambiente in Munich. It was a very nice small hotel with a wonderful breakfast buffet. I think the price would be close to your range. We stayed during the Oktoberfest last year and it was a little higher because of it.

Topping for Larisa...

Topper, thanks for help