Preferred place is Chania, but if you're going to cheap you can find cheaper right outside the old city center, especially if you're going to rent for a year.
The good things:
- Half a year is summertime - The food is superb - The canyons are amazing - Many seashores are amazing - You're close to the sea everywhere, very strong boost for your your family's immune system - You can live easily with less than ~40k/year - Ppl are accustomed to foreigners and very easy to befriend
You can find specific info about ppl working remotes all over the world here: https://nomadlist.com/?ref=remoteok (no affiliation)