The compact ring of streets immediately around the Imam Reza Shrine is the pilgrim heart of Mashhad: low-priced hotels, prayer-supply shops, samovars of tea on every corner, calligraphy shops, and the steady current of visitors heading toward the gates. The atmosphere is intense, especially after evening prayer when tens of thousands move through the streets at once.
Stay here if you want to be in the middle of things, or for a single night to experience it. For peace and sleep, move to the western neighbourhoods.