Between the Plaza de la Paja and Cava Baja is the storybook core — gorgeous, but book interior rooms near the tapas streets. Toward the Puerta de Toledo and the Rastro streets prices drop noticeably. The San Francisco el Grande end is quieter and greener, with the basilica's dome as your landmark home.
La Latina lists around 318 bookable hotels and guesthouses, from roughly €40/night. Prices on the area page are live; booking 3–6 weeks out usually lands the best rate, with free cancellation on most rooms.
If it books out or you want to compare: Lavapiés (from €35/night), Palacio & Ópera (from €46/night), Sol (from €45/night) — each with its own area guide on this site.
Curated picks are coming — meanwhile, the live search covers every bookable property at the same price or better.