Where to stay close to Yamadera?

Hi, I didn't find a similar question searching so I am asking.
We will visit Yamadera at the end of the month and the following day we will go to Dewa Sanzan.
I always try to avoid hotels and prefer minshukus or ryokans. Unfortunately Ginzan onsen is already fully booked and I can't find much in the area.
Where could I stay? Do you have any minshuku or farmstay or nice cheap ryokan you could recommend in the area or west of Yamadera?

We were also considering Zao Onsen but I am not really sure.

thank you!

How is Tendo hot spring?
It is famous as a hot spring resort at 6 stations from Yamadera Station.
There are 12 inns and hotels.
http://www.city.tendo.yamagata.jp/tourism/onsen/tendoonsen.html

Are you driving or using public transport?

Many years ago, I did Sakata to Tsuroka to Haguro, hiked to the top, took the bus down, then caught a bus in Tsuroka for Yamagata and then did the bus to Zao. It worked out great. I really enjoyed Zao and it has relatively frequent buses to Yamagata.

I will have a car. Thanks for your answers! Zao might definitely be the place!