There are a surprising number of types of accommodations in Iceland for such a small country. From super cheap options like camping and hostels to family-run guesthouses and luxury apartments, you can find something for every kind of traveler. When we hit the road, we favor budget hotels in the central city, but finding a room under $100 a night can be tricky in Reykjavik, and even more difficult once you get out in the countryside.

But good deals do exist, and with so many new accommodations opening in the past few years (many of the affordably hip variety), the choices are better than ever. Do a search now, or check out these favorites in Reykjavik that all offer an excellent location and score high ratings from guests.

Note: This article is part of our budget travel guide to Iceland.

Our favorite cheap hotels in Reykjavik

Guesthouse Sunna

With free breakfast and a fantastic location just steps from the famous Hallgrímskirkja church, this popular budget stay has rooms starting at just over $100.

Central Guesthouse Reykjavík

Spotless rooms in a building from the 1920s and a location just five minutes from the main shopping street make this hotel an excellent option. Well-equipped kitchens in studios are perfect for travelers that like to cook. Rates start at $85 for a double.

Hotel Fron

Located right on the main pedestrian drag, you can’t get more central than this friendly budget stay. They offer a variety of accommodations from single rooms to large apartments with doubles starting around $130 per night.

Loft Hostel

Clean and comfortable dorm rooms with linens and lockers are a super cheap option, but this hostel with a rooftop cafe also has rooms with private bathrooms. Deluxe doubles can be found for around $140.

Kex Hostel

Being cool doesn’t have to cost you a fortune in Reykjavik. Kex offers hip touches throughout the property and features everything from women-only dorms and family rooms that hold four-to-six guests. A Double Room Plus even includes breakfast and start around $120, while Double Standard rooms go for $70.

Odinn Reykjavík Apartments

Rooms come with private or shared bathroom facilities at this easygoing guesthouse down the street from Hallgrímskirkja Church. If you like a good view, you can request a studio that looks out onto the sea.

Hotel Leifur Eiriksson

All rooms come with a private bathroom and desk in this popular hotel situated across the street from Hallgrímskirkja Church. A dining room serves a breakfast buffet each morning that is included in the price.

Tip: Book hotels ahead of time

Just remember, with so many people flocking to Iceland now, make sure you book early or you might be shut out. And once you head out of Reykjavik, the number of overnight stay options drop dramatically. Some towns only have a handful of guesthouses, so plan ahead if you want to visit places a bit off-the-beaten-path.

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Our guide to budget travel in Iceland

Read more in our guide to saving in Iceland:

• Airfare: Finding cheap flights from the US
• When to go to Iceland
• Renting a car in Iceland
• Bus tours from Reykjavik
• Budget tips for visiting Reykjavik
• Saving on restaurants, bars and nightlife in Reykjavik