I am actually quite confused, I have a Hungarian permanent residence but I live outside europe and carry a non-European citizenship. I can enter any european country without needing a visa though. Does that mean I am eligible to get an interrail or is the eurail my only choice?
Interrail passes are available to European citizens and residents. As a resident of Hungary, you are therefore entitled to travel with an Interrail pass.
Be aware though, that your Hungarian residence permit alone, does not allow you to enter all other European countries without a visa if you with your citizenship otherwise would have needed one.