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There will always be someone unhappy in the game.
Having said that, I don't recall exactly how far you need to be to avoid this penalty.
I set up for a mining area where I can support a minimum of four mines, by building up the housing and food, I build in Churches and a small cemetery in the market area. Using the radius of the market as my housing guide, I will build plenty of wells too. All wells, cemeteriess and churches boost happiness. You will also need to be providing your citizens with every type of food available to you in Vanilla. Also a happiness albeit a small one, every bit counts though.
I run mines in pairs of two, one in iron one in coal. I also build a huge forestry industry for the firewood as a major trading item, buying tons of food annually with firewood, tools etc,
Doing this I can maintain high happiness in mining areas easily.
Wells, I place my houses in blocks of six, two wide, three long, surround with large road to accomodate a well, then another block of six two wide, three long. its just a comfy way I build my housing,
I ignore the range completely most others will disagree with me. But from all my playing/testing you can use a lot less markets than others/guides will lead you to believe.
The residents have no problem walking from one end of the map to the other whats to stop them from walking further to the market.