I am not sure if you are referring to Formosa Boulevard Station 高雄美麗島站. As far as I know, it is a nice train station.
I only went there once. So can't really comment if it is the best place. But I would not mind staying there again.
IMO, staying anywhere near a MRT station is always a good idea.
If you stay near THIS MRT station, you are near to one attraction but not to another, so you need to take the train to that other place. If you stay near THAT MRT station, then you are near to that attaction but not to this attraction. But as long as you are near a MRT station, I think it's already very convenient.
It's like Singapore. As a local, I would advise any tourist who is planning on visiting Singapore that there is NO NEED to stay in a hotel on Orchard Road to be near attractions. A hotel in Chinatown is just as good if it is near the MRT station. For that matter, if someone books Airbnb, I would say even Ang Mo Kio, Hougang, Jurong East etc would be good if it is near a MRT station (but the government does not allow Airbnb rental for HDB flats). You can reach Ang Mo Kio from Orchard Station in less than half an hour, but you save lots between what you pay for a hotel room on Orchard Road and somewhere outside...