This is a very difficult question to answer. The term "budget friendly" is a very relative term. Certainly there are less expensive hotels all along the oceanfront that won't break the bank. Finding exactly which one meets your needs can be a challenge.
Timing and location is everything. The summer months have the highest room rates and the closer you get to the oceanfront / boardwalk area the higher the rate (usually). Additionally weekends typically incur a higher room charge. It is complex.. but finding a good deal is not impossible.
Your best bet would be to visit a hotel booking site like here... VIRGINIA BEACH HOTEL RESERVATIONS and enter the dates that you would like to stay. Then, on the results page, there are some filters that you can use. There is a "Sort by Price" button at the top of the results page which should help. There is also a "Map" link that will show you all of the hotels and where they are located.
Anything on Atlantic Avenue or Pacific Avenue is within easy walking distance to the beach. These two roads are parallel to the beach and only 1-2 blocks away.
The streets are numbered from the south end (low numbers ) to the north end (higher numbers). We recommend anything between 4th street (South end of the oceanfront/boardwalk area) up to approximately 40th Street (North end of the Boardwalk area). The "heart" of the oceanfront and beach area is between 10th and 30th street. This is known as Beach Street USA and is where most of the action is.
We hope this helps you in your quest for a "budget friendly hotel". Keep searching and we are sure you will find something to meet your needs.
We hope you enjoy your stay and as always..
HAVE A GREAT DAY AT THE BEACH!