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Cheap accommodation in Iceland by area ✅ Includes Map

One of the biggest expenses in the budget for traveling to Iceland is accommodation. One of the main reasons is that it is a country with a lot of nature but with a small hotel infrastructure compared to the large amount of tourism it receives. In this article I'm going to recommend some cheap accommodations in Iceland. ordered by areas so you can tour the island complete on a tight budget. 

Note that This type of accommodation with a great quality/price ratio is in high demand. and they sell out many months in advance. 

Depending on the time of year you travel, the variety of options and the price of accommodation can vary greatly. For example, in winter Accommodation in Iceland is cheap, at least compared to summer, but there are much fewer options available because a large number of hotels are closed. In contrast, in summer there are many more options but cheap accommodation in Iceland they sell out quickly.

Map: accommodation in Iceland flights

This map will be useful to see where exactly the hotels we recommend are, but above all to see The areas with the most cheap accommodation in Iceland. Normally where there is one, there are usually several at affordable prices.

Conversely, areas where there is no marked accommodation are areas that are carWhen planning your route, it's worth paying special attention to... avoid spending the night there. An example is the entire area from the Skaftafell National Park to the small town of Höfn.

You can select each symbol to see the name, exact address and link to Booking.com

More accommodations cheap from Reykjavik

Guesthouse Pavi

This guesthouse is located in the center of Reykjavík but at the same time in a quiet area. It is a couple of minutes from the most important pedestrian street in the city. and you will have no problem finding good cheap restaurants around. The rooms are simple but clean and quite spacious, the cheapest ones have a shared bathroom but there is the option of having a private bathroom.

There is no reception as you access it with a code that will be sent to you when making the reservation, the check in and check out process is simple. It can appearcar around easily and has a Bonus supermarket within walking distance. Regarding common areas It has an equipped kitchen with everything you need, but there is little place to sit down to eat.  

The double room at this accommodation costs around €70 per night in low season, €90 in mid-season and €140 in high season. If you are looking for cheap accommodation in Iceland in the capital, this is the best option.

Cheap accommodation in Iceland

Guesthouse Andrea

We found the rooms at Guesthouse Andrea to be comfortable and clean but there is no option to have a private bathroom, although the shared bathrooms are very clean. The accommodation It is located just a few meters from the iconic Reykjavík Cathedral So you can easily explore the city on foot, which is a great advantage. Plus, there are streets nearby where you can park.car without paying for parking.  

In the facilities you will find a dining room and kitchen for shared use, where in the morning it is served breakfast included in the price. Simple but good buffet breakfast. Staying here costs €90 in low season and €220 in high season.

Cheap accommodation in Iceland

Iceland insurance
Iceland insurance

Cheap accommodation in Iceland by the Golden Circle

Skyggnir B&B – The cheapest accommodation in Iceland

This is a typical Icelandic country house renovated to serve as accommodation. Guests can use all common areas as a comfortable living room and a well-equipped kitchen

The rooms are warm and comfortable, although the bathroom is shared. The staff will warmly welcome you and help you with everything you need. Besides breakfast is included and is very varied with quality local products, which is much appreciated because for these prices the rest of the hotels usually do not include it or have little variety and are of very poor quality.

This is one of the cheapest accommodations in Iceland, priced at €70 for a double room and €140 for a family room. on any date of the year, something not common in this country. For this low price and everything that is offered, it is not surprising that you need to reserve many months in advance.

Húsid Guesthouse

This accommodation is another great option in the middle of the Golden Circle. It has clean rooms, not very spacious but comfortable with two shared bathrooms. The House have equipped kitchen available to guests and a small hot water pool in the garden. The owner of this guesthouse is really friendly and will try to make sure you enjoy your stay to the fullest. 

The price of a double room is around €80 per night in low season and €120 in summer.

Cheap accommodation in Iceland

South Central Guesthouse

In carRoute 30, which leads to the Golden Circle from Selfoss, you will find this accommodation with comfortable, clean and warm rooms. The bathrooms are shared but are clean. You can use common areas such as a living room, a large kitchen with everything you need and a small jacuzzi hot water exterior. 

The price of this accommodation around €90 for a double room in low season and €100 in high season.

Cheap accommodation in Iceland

Cheap accommodation in Iceland south

the barn

This accommodation located near the tourist town of Vík es a safe bet for those traveling on a tight budget for Iceland. It is a modern hostel with shared bedrooms of double beds that have a good curtain to give privacy. 

So much The shared bathrooms like the rest of the facilities are clean and well maintained. It has a kitchen for common use with everything necessary and very elegant common rest areas. If preferred, there is also the option of private rooms. 

The price of a double bed in a shared room is €80 in the low season and €120 in the high season. If you are looking for cheap accommodation in Iceland, you should definitely book this one.

Cheap accommodation in Iceland

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Hvoll Hostel

Hvoll Hostel is one of the cheapest accommodations in Iceland near the tourist Skaftafell National Park. The rooms have a shared bathroom and although they are not very spacious, they are clean and comfortable. In the hostel there is a shared kitchen so you can prepare dinner since there is no large town nearby. 

The double room with shared bathroom costs around €100 in low season and €140 in high season.

South Iceland Guesthouse

Not far from the town of Vík, in the south of Iceland, is this hotel with very modern facilities and surrounded by a beautiful natural environment. Its rooms are spacious, clean and comfortable. As usual, it has a very spacious shared kitchen equipped with everything you need. 

Staying in this guesthouse costs €100 per night for a double room with shared bathroom in low season and about €160 in high season.

Cheap accommodation in Iceland East Side

Hofn Hostel, cheap accommodation in Iceland

This is a simple hostel next to the port Höfn fishing village, considered the gateway to the fjords of the eastern iceland. They have bunk beds in shared rooms (approximately €50 per person), rooms with shared bathroom and rooms with private bathroom. In general the rooms are simple but very clean and the beds are comfortable. The shared bathrooms are also clean and modern.

In its facilities you will find a large living room with many tables, a large kitchen equipped for guests and a terrace with tables and barbecues Of gas. 

A double room with a shared bathroom costs around €80 per night in low season and €160 in high season. To find cheap accommodation in Iceland, we recommend using the bus.car in Hofn or surrounding areas.

Ormurinn Guesthouse

This Guest House is located outside Egilsstadir, the largest and most serviced town in East Iceland. It is a simple but practical accommodation with common areas, a shared kitchen and parking at the door. 

As for the rooms, they are also simple but warm and cozy. The price of a double room with shared bathroom is €100 in low/medium season and in summer the entire house is rented for groups of up to 11 people for €500.

Hafaldan HI hostel – Seydisfjordur

In the picturesque town of Seydisfjordur, in the middle of the fjord, is this also picturesque accommodation. It is a very nice hostel with large common areas and both the bathroom and the kitchen are fully equipped. It has a washing machine and a sauna available to guests. 

The price of a double room with shared bathroom is €130 in mid season and €150 in high season. This is an example of the hotels that They close during the low seasonFinding cheap accommodation in Iceland during the winter in Seydisfjordur is not an easy task.

Guesthouse Elínar Helgu

This Guest House is a beautiful wooden house located in a wild fjord in the east of Iceland to which It can be reached without any problem by the carretera 1 when surrounding the island. This country-style accommodation has enviable panoramic views of the entire fjord and has a large terrace to enjoy the surroundings with one of their free teas or coffees in hand. 

The rooms are warm and comfortable and everything is built of wood, if you like the scandinavian country style this place is for you. 

It also highlights the attention and kindness of the owners who will help you at all times and they can recommend things to see in the area. This is another of our favorite cheap accommodations in Iceland, although it is somewhat isolated.

The double room with shared bathroom costs around €100 in low season and €130 in high season.

Cheap accommodation in Iceland

Cheap accommodation in Iceland by Myvan

Skútustadir Guesthouse – Cheap accommodation in Iceland

On the shore of the lake Myvatn you will find this very cozy accommodation in typical Icelandic style. It is a large building with spacious rooms, common areas, equipped kitchen, laundry, private bathroom or shared bathroom options and all very clean. 

A very notable aspect of this accommodation is the delicious and varied breakfast which includes, among many other options, you can try local products such as homemade yogurt and milk, jams and smoked lake trout. 

The price of a double room with shared bathroom is €100 in low season, €160 in medium season and €180 in high season.

Cheap accommodation in Iceland

Eldá Guesthouse

Located in the small town next to the lake There is the Guesthouse Eldá. It stands out for its beautiful and comfortable rooms as well as the general cleanliness of the entire accommodation. In this guesthouse there is a good shared kitchen and a large common area with tables to eat or hang out. 

El buffet breakfast is delicious and is included for all guests. Staying here in low season costs €120 for a double room and €270 in high season.

Cheap accommodation in Iceland

Hlíd Hostel

Hlíd is one of the cheapest accommodations in Iceland, especially if we are looking to sleep in the Myvatn area. It is cheap because it is a hostel with shared rooms in which The price per person is €50 in high season and €35 ​​in low season. 

If you prefer a private room, the family room for up to 4 people costs from €150 to €170 in low season depending on the number of people and from €240 to €260 in summer. 

It features common areas, shared bathrooms and a kitchen equipped with everything, but you must keep in mind that being a bunk bed hostel it has many guests using all the facilities.

Cheap accommodation in Iceland

Cheap accommodation in Iceland North Zone

Apotek Guesthouse

Located in the heart of the city of Akureyri, known as the northern capital, this hotel has everything you need to enjoy a comfortable stay. The rooms are simple but comfortable and as is typical in Iceland there is a shared kitchen. The shared bathrooms are not the best but sufficient for one or two nights. 

A double room with shared bathroom costs around €90 in low season and €145 in high season. A very good optional continental breakfast is offered for a little extra. Considering that Akureyri is the capital of the north of the country, this is one of the best cheap accommodations in Iceland.

Cheap accommodation in Iceland

Hotel Dalvik

In one of the best areas of the country for whale watching you will find this comfortable and affordable hotel. The rooms are spacious and beautiful, they have the option of a shared bathroom or a private bathroom. 

The hotel has shared laundry and kitchen as well as a large lobby with tables to eat or hang out. The staff is attentive and helpful and will help you with anything you need. 

In this hotel a double room with shared bathroom costs €80 in low season, €120 in mid season and €140 in high season.

Cheap accommodation in Iceland

Query our guide on how and where to see whales in Iceland

Cheap accommodation in Iceland westfjords

Miðjanes Reykhólahrepp

A hotel located in the middle of nature in the wild Westfjords that has all the facilities you need to enjoy your stay. It is a renovated house with warm and comfortable rooms, a shared kitchen and a nice living room with views of the sunset. The Hosts are very close and helpful, they will tell you everything you want to know about rural life in Iceland or what to visit in the surrounding area.  

Staying here in high season in a double room costs only €105 per night and €95 in low season.

Cheap accommodation in Iceland

Best places to see puffins up close

Súðavík apartment, cheap accommodation in Iceland

This is a simple but comfortable apartment and it has everything you need. This located next to one of the carmain reteras that run through the western fjords so getting there is not complicated at all. They highlight the views you have of the entire fjord from the dining table

Please note that this is one of the best cheap accommodations in Iceland. Renting a double room in this apartment in high season costs €95 and the entire apartment for 4 people costs €175. It is closed in low season.

Cheap accommodation in Iceland

Cheapest accommodation in Iceland in the Snaefellsness peninsula

The Freezer Hostel and Culture Center

One of the cheapest accommodation in iceland is located in the beautiful Snaefellsness peninsulaSpecifically, it is the Frieza hostel. It is a hostel with shared and private rooms where you can stay from €38 per person in high season and from €21 in low season.

This accommodation is a renovated old factory that now also serves as the town's social center. In the summer there are plays, concerts and game nights to which guests can access for free

It has common areas, a small shared kitchen and a bar. The decoration is original and cozy and there is usually a very good atmosphere, ideal for meeting other travelers.

Cheap accommodation in Iceland

Hamrahlíð 9 Guesthouse

This Guesthouse is located in a quiet town next to the famous Kirkjufell mountainThe facilities are complete with everything you could need, a spacious shared bathroom, equipped kitchen, living room and parking spacecar at the door. The beds are very comfortable but the rooms are narrow. Breakfast is not included but coffee and tea are available

Staying here in a double room with a shared bathroom costs around €140 all year round.

Cheap accommodation in Iceland

Although finding cheap accommodation in Iceland is not easy, there are always some good options to save on accommodation. We hope that with the help of this article it will be easier for you to find accommodation in the country so that you can travel around and enjoy it with total peace of mind.

To continue organizing your trip to Iceland, here you have all our articles

Start preparing your adventure in Iceland

These are our favorite websites to do so. Plus, if you use our links you support all Icelandic content at no extra cost to you.

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