"I'm frustrated to say the least, but very pleased that we've stayed in this division," Hodges told BBC Cornwall.
"In a couple weeks time I'll be pleased we're still in this division, but we're going to have to raise the bar."
The Cornish side were safe going into their final game, which they lost 4-0 at relegated Bishop's Stortford.
"Well done for staying up," he added. "But we've underachieved by a country mile."
Having been play-off semi-finalists in 2015-16, after finishing fourth in the table, the White Tigers dropped to 19th in 2016-17, letting in 99 goals from their 42 league games, more than any other side above the bottom three.
Hodges says he will meet chairman Peter Masters this week to discuss plans for next season.
"There are a lot of decisions to be made on players," he said. "There's a few bonuses there for players who have done very well and competed, and others know that they've not been up to the standard."

Revenues of £1.43bn for the six months to 25 October and underlying earnings of £218.5m were below  analysts' forecasts, making the stock the worst performer in the FTSE 100.
The index closed down by 38.63 points at 6,088.05.
Shares in financial services group Old Mutual, which has interests in South Africa, sank more than 10%.
South African's President, Jacob Zuma, sacked Finance Minister Nhalnhla Nene late on Wednesday, and South Africa's currency fell close to a record low against the dollar in reaction.
Shares in mining giant Glencore jumped 7% after it announced plans to speed up the rate at which it cuts its debts.
The company now aims to cut its debts to $18bn-$19bn (£11.8bn-£12.5bn) by the end of 2016, down from a previous target of "low $20s billion".
British Gas owner Centrica rose 2.6% after the energy firm said it was on track to meet expectations for full-year earnings.
Investors welcomed full-year results from holiday group Tui, sending their shares up 4.6%. The company - which owns the Thomson and First Choice - reported a 23% jump in full-year underlying earnings to €1.07bn (£775m) and gave an upbeat outlook for the coming year.
On the currency markets, the pound slipped 0.06% against the dollar to $1.5172, but was up by nearly one cent, or 0.68%, against the euro at €1.3861.
Lee Hodges says his Truro team have underachieved by a "country mile" by finishing the season one place above the National League South drop zone.
[NEXT_CONCEPT]
(Close): Sports Direct shares dived 11% after the retailer's half-year results fell short of expectations.