Hostels are also interesting for many travelers in that you can meet other tourists and if you are on your way to Iceland, for example, you can join someone or at least have someone to share your experience with during your stay.
When it comes to prices for hostels in Iceland, they may not be as low as you would expect, but they are still cheaper than most accommodation facilities, especially during the season when prices in hotels or guest houses are rising.
You can find hostels in places where you would like to stay on comparative servers like Booking.com or Google.
Many of them are in Reykjavik, but outside the capital are mainly in cities. Here is a network of so-called HI hostels. Their list and information about the hostels can be found at https://www.hostel.is.
If you plan to stay in a hostel during your trip to Iceland, be sure to check in advance about the availability of the hostels and book your accommodation if necessary.
There are many tourists who visit Iceland every year and because of the limited capacity of cheap hostels, they are often sold out in season.
List of hostels in Iceland: