In an industrial estate toward Njarðvík, on busy Rte 41, this hostel has dated decor and feels rough around the edges. It's not always clean, and is not for everyone, but it’s the cheapest option near the airport. Guests get use of a kitchen and TV lounge. Buses to Reykjavík and Keflavík pass in front, but a car would be helpful if staying here.
FIT Hostel
Reykjanes Peninsula