Bournemouth are currently 18th in the Premier League on 27 points, and lost to a 10-man Palace in December.
But, looking at a demanding run of nine upcoming fixtures, Hodgson reminded supporters of the Cherries' poor fortune and the calibre of all teams in the top flight.
"[Eddie Howe] had a lot of injuries," the manager said. "He’s back to strength now but at the time they were suffering with an enormous injury crisis. When that happens it’s quite easy to drop away because the level of play in the Premier League is so high and the margins are so small.
"If you’re asking me if they’re the sort of team that deserves to be relegated, of course they aren’t, but you can say that for any team fighting relegation. They all have the qualities to stay in this league.
"But it’s about getting points and sometimes you get hit hard. Bournemouth had that spell and I’m fully expecting them, with a fully fit squad, to pull away from that."
Hodgson then turned his attention to his own side's position in the league, reiterating his 'level-10th' phrase:
"There’s a financial consideration but also an important sporting consideration [to Palace’s final position]. We’re 11th now but on the same points and goal difference [as Burnley], so I’d call it ‘level-10th’. We’d certainly like to get a little higher and that’s something to play for."