Cheapest hostels in Iceland

Conveniently located in Vestmannaeyjar, this budget-friendly hostel is a short walk from Sæheimar museum and aquarium, and within 10 minutes of Surtseyjarstofa visitor centre and the Volcanic Film Show.
Offering free WiFi and parking, this affordable accommodation provides a cheap and cozy base for exploring the island's rich history and geological wonders.

Adjacent to the geothermally heated Laugardalslaug Swimming Pool, this eco-certified hostel is located 3.5 kilometres from Reykjavík's city centre.
Offering a budget-friendly stay, this hostel provides free WiFi, communal kitchens with microwaves and fridges, and on-site dining featuring organic and local meals, with a terrace bar and barbecue facilities perfect for exploring the local area.

Just 0 meters from Sæheimar and Surtseyjarstofa, Blue Hostel Blaufjoll in Vestmannaeyjar offers a budget-friendly stay with complimentary on-site parking, conveniently located 500 meters from Eldheimar Museum and 700 meters from Landakirkja Church.
This hostel provides free Wi-Fi throughout and features 18 guest rooms, perfect for those seeking an affordable and independent experience in Vestmannaeyjar.

Located in Hrífunes, The Fox Hostel is situated approximately 47 kilometres from Fagrifoss, offering a remote and peaceful escape.
This budget-friendly hostel provides free WiFi, complimentary private parking, and opportunities for hiking, making it an affordable choice for exploring the surrounding mountain views.

This hostel in Grundarfjörður is conveniently located within a 5-minute walk of the public swimming pools and 3.8 kilometres from Kirkjufellsfoss waterfall, offering a budget-friendly base for exploring the area.
Guests can enjoy complimentary Wi-Fi, a communal kitchen with a microwave and refrigerator, and free on-site parking, making it an affordable and practical choice for travellers.

Just 3 minutes on foot from Silfurnes Golf Course, Höfn Hostel offers a budget-friendly stay near the ocean, with scenic views from its terrace and garden, and is less than a 3-minute drive from the Hornafjordur Art Museum.
This hostel provides complimentary Wi-Fi, a shared kitchen, and laundry facilities, ensuring a comfortable and affordable experience for travellers exploring Höfn.

Just 500 meters from Hallgrímskirkja Church, this private room in a hostel offers a prime central Reykjavík location, only a 5-minute walk to both Hlemmur and BSI bus stations, making it an affordable base for exploring the city.
This budget-friendly accommodation provides a comfortable 160x200cm bed for two guests, free Wi-Fi, ample storage, and access to a well-equipped communal kitchen and tiled bathrooms for a hotel-like stay.

Located in Modrudalur, Askja Hostel is situated approximately 80 kilometres from Vopnafjordur Airport, offering a peaceful retreat in a serene landscape.
This budget-friendly hostel provides essential amenities including complimentary WiFi, a welcoming garden, and an on-site bar, making it an affordable choice for travellers.

Centrally located in Akureyri, this hostel is a short walk from HOF – Cultural & Conference Centre, the swimming pool, gym, shops, and whale watching tours, with Akureyri Airport only 3.4 kilometres away.
Offering budget-friendly accommodation, this hostel boasts an exclusive Rooftop Zen SPA with panoramic sea views, a lavish breakfast buffet at its stylish restaurant, and free WiFi throughout the property.

Situated on the Snaefellsnes Peninsula in western Iceland, this hostel is located in Hellissandur, offering countryside vistas and proximity to opportunities for hiking and fishing.
This budget-friendly hostel, formerly a fish processing factory, provides a communal kitchen, on-site bar, and complimentary tickets to weekly summer performances, making it an affordable and unique cultural experience.

Located deep within the Thorsmork Nature Reserve, this hostel is situated 32 kilometres from Seljalandsfoss waterfall, offering a remote and exclusive escape.
Guests can enjoy a sauna, a restaurant and bar, and kitchenettes in the cottages, making it a perfect budget-friendly base for exploring the Laugavegur and Fimmvörðuháls hiking trails.

Conveniently located in the city centre, this hostel offers easy access to Reykjavik's main attractions, with the Hallgrímskirkja church just 1 kilometre away.
This budget-friendly hostel boasts private, app-controlled 'Hubs' with double beds, a communal kitchen with a microwave and dishwasher, and a bar, all managed by 24/7 'CityHosts' for local recommendations and magic wristband access for keyless entry and self-service tap beer.

Conveniently located in Rangárþing ytra, this hostel is a short 1-minute drive from Hella Caves and 6 minutes from Hella Golf Club, offering a budget-friendly base for exploring the region.
This affordable hostel provides complimentary buffet breakfast, free Wi-Fi, and on-site parking, with its restaurant, Kanslarinn, and concierge services ensuring a comfortable stay close to attractions like the Lava Centre (12.2 kilometres) and Saga Centre (13.1 kilometres).

Located within a national park in Snæfellsbær, The Freezer Hostel & Culture Center offers an affordable stay just a 4-minute drive from Hellissandur's Frescoes and 13 minutes from Skarðsvík Beach, making it a great base for exploring this unique region.
This budget-friendly hostel provides a shared kitchen, free Wi-Fi, and a video game room, alongside tour assistance to help you discover the surrounding natural beauty and seaside attractions.

Located a mere 10-kilometre drive from Keflavík International Airport, this hostel provides convenient access to attractions like the Viking World museum.
Offering a budget-friendly stay, the hostel features a shared kitchen, a TV lounge, and a children's playground, with options for private rooms or dormitory facilities.

Kanslarinn Hostel in Hella offers a budget-friendly stay conveniently located for exploring the region, situated 34 kilometres from the iconic Seljalandsfoss waterfall.
This hostel provides essential amenities including free WiFi and on-site dining, making it an affordable choice for travellers seeking a comfortable base.

Located in Stokkseyri, this unique hostel is set in a former fish factory on the coast, conveniently situated near Route N.1 for easy exploration.
This budget-friendly hostel offers a 24-hour reception, a communal kitchen with a microwave, and a terrace, making it an affordable and practical base for exploring the seaside.

Héradsskólinn Historic Guesthouse is situated in Laugarvatn, within the Golden Circle, offering spectacular views of Lake Laugarvatn, Hekla Volcano, and Eyjafjallajökull Glacier, and is conveniently located only 26 kilometres from Thingvellir National Park, 26 kilometres from the Geysir Hot Spring area, and 39 kilometres from Gullfoss Waterfall.
This budget-friendly hostel provides a unique stay in a historic 1920s former school building, featuring free WiFi, a swimming pool, a restaurant, a bar, and easy access to local activities like hiking and fishing, making it an affordable choice for exploring the region.

Perfectly situated in the heart of downtown Reykjavík, Loft - Hi Eco Hostel is just 500 meters from the main shopping street, Laugavegur, and a short walk to the Harpa Concert Hall and Hallgrímskirkja Church, offering an excellent base for exploring the city's attractions.
This budget-friendly hostel provides a rooftop terrace with city views, free WiFi, a bar, and hosts weekly social events, making it an ideal and affordable choice for travellers seeking a social and convenient stay.

Centrally located in Reykjavík, this hostel is just 250 meters from Laugavegur shopping street and 0.9 kilometres from Harpa Concert Hall.
This budget-friendly hostel offers a communal kitchen, on-site restaurant and bar, and a heated outdoor terrace, providing a great base for exploring the city affordably.

Skogar Hostel is located in a rural part of Rangárþing eystra, just 2 kilometres from the famous Skogafoss waterfall and Skógar Museum, and within 5 kilometres of Kvernufoss Waterfall and the historic Drangshlio Houses.
This budget-friendly hostel offers essential amenities including free WiFi in public areas, a shared kitchen, and complimentary parking, making it an affordable base for exploring the natural wonders of southern Iceland.

Located in Reykjavik, this hostel is a short drive from Perlan and the University of Reykjavik, with Hallgrimskirkja and Laugavegur approximately 1.8 kilometres away, offering a budget-friendly base for exploring the city.
Guests can enjoy complimentary Wi-Fi, shared kitchen facilities, and an on-site bar, with a 24-hour airport shuttle available for an additional charge, making it a convenient choice for affordable travel.

Conveniently located in Egilsstaðir, Tehúsið Hostel & Guesthouse is situated 33.8 kilometres from Hengifoss and 24.1 kilometres from Gufu Waterfall, with Egilsstaðir Airport just 1.9 kilometres away.
This hostel offers a budget-friendly stay with a shared kitchen, free Wi-Fi, and on-site parking, making it an affordable choice for exploring the region.

Ideally located in Reykjavík's Vesturbær district, this hostel is just 500 metres from Reykjavik Old Harbour and 1.7 kilometres from Hallgrímskirkja Church, offering a budget-friendly base for exploring the city.
Guests can enjoy a shared kitchen with a fridge and microwave, free WiFi throughout, and convenient luggage storage, making it an affordable option for travellers.

Conveniently located 2.7 kilometres from Laugavegur, Reykjavik's main shopping street, and 2.2 kilometres from Laugardalur Swimming Pool, B14 Hostel offers a budget-friendly base for exploring the city.
This hostel provides guests with free WiFi and parking, a communal kitchen equipped with a fridge, microwave oven, and dishwasher, and is within easy walking distance of shops, restaurants, and bars.

Framtid Hostel in Djúpivogur offers affordable seaside accommodation, located just 85 kilometres from Egilsstaðir Airport, providing a budget-friendly base for exploring this coastal village.
Guests can enjoy sea views, private entrances, and fully equipped kitchens, alongside an on-site restaurant and bar for a comfortable and convenient stay.

Situated by the sea in Eyrarbakki, Bakki Apartments & Hostel is a mere 8-minute walk from the Eyrarbakki Museum and 80 kilometres from Reykjavík city centre.
This budget-friendly hostel offers both self-catering apartments and shared dormitory rooms, with free WiFi and parking, making it an affordable choice for exploring the Icelandic coast.

Just a 19-minute walk from Nauthólsvík Geothermal Beach and Laugavegur Shopping Street, SM Hostel in Reykjavík offers a budget-friendly stay conveniently located 2.4 kilometres from Solfar Sun Voyager.
This hostel provides a shared kitchen, garden, and free WiFi, making it an affordable option for exploring Reykjavík's attractions like The Pearl and Hallgrímskirkja Church.

Located on Karlsstad farm in Berufjordur, this farm offers a secluded natural setting in Iceland's East Fjords, close to Djupivogur and Breiddalsvik.
This budget-friendly farm provides an immersive experience in the natural landscape, boasting amazing views and featuring family rooms and double bedrooms with shared bathrooms.

Conveniently located in Akureyri, this hostel is just 349 metres from Akureyri Church and Hof Cultural and Conference Centre, offering a budget-friendly base for exploring the city.
This affordable accommodation boasts unique sleeping pods, a shared kitchen, barbecue facilities, and is ideally situated for whale watching and cycling adventures.