Zhangjaijie village is cheaper than staying in the city and is closer to the stuff that you want to see and do anyway—nature, outdoorsy activities. There are some budget places by the bus station, but, although it's not super cheap you won't have difficulty finding accommodations and there are a lot of hotels in the scenic area. Prices go up on weekends. The best place to stay is Minzu Shanzhuang with thatched roofs and Tujia-style wood rooms, some of which have balconies and views (250 RMB). Two other fairly up-market places are Xiangdian Shanzhuang (400 RMB) and Zhanghaijie Binguan (dorms 75 RMB, doubles 250-500 RMB). You might also try to find accommodation in the lesser known Suoxi Valley.