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Where to stay between Capitol Reef and south Rim ?

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I have most of my reservations made, and feel so much better about my trip.
The only question I have is where to stay between Capitol Reef and the south Rim .
We have an overnight slotted along the route 24 to Hanksville, and down 95 and 261 to Mexican Hat. and down 163 through Monument Valley and down 160 to Tuba City. .
There doesn't seem to be many towns along the way. or at least not many.

Where should we stop and what should we do along this route.? Visit Monument Valley? I guess if we drive through Monument Valley we should stay at or near the south end of the Valley .
How about Kayenta?

Thanks for any help.

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