I do not recommend free hosting. With the plague of garbage on the web many people may not be willing to link to sites that reside on a free host.
A commercially oriented website needs to show significantly greater quality for me to want to link to it if it resides on a free host. In addition free hosts usually put some ugly banners on your site which ruin the page flow and make it look exceptionally unprofessional.
I have seen some blogs do ok which were hosted at Blogspot, (Blogger’s free host) but that exception is based on the fact that blogs are generally more personal in nature and not so commercially driven.
Additionally if you create a subdomain and eventually want to move your site it may be hard to move some of that link popularity to the new location.