Hostelling is quite popular in Iceland and you’ll find several options to meet your budget. Expect to pay at least 3000 ISK (about $25 US) for a bed in a hostel, and come armed with your own bedding or sleeping bag, or be prepared to pay a small (around 1000 ISK) bedding rental fee. There are 34 Hostelling International-affiliated hostels around the country, which offer a total of 11,000 beds, along with dozens of independently-owned hostels. Some offer private or family rooms, though most have only shared bathrooms.
Guesthouses are another good option and fall somewhere between hotels and hostels. They often have shared bathrooms, kitchen facilities and common areas, but they are generally quieter and offer extras like free internet and breakfast. Rates can range from 8,000 to 14,000 ISK for a double room and some offer ensuite and apartment rooms as well.
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Search this map to find cheap hostels in Reykjavik, or find even more hostel options by searching with the widget above
Search this map to find cheap hostels in Reykjavik