A (relatively) well-priced and photogenic option: small, red cottages are spread over a brilliant-green backdrop on this working sheep farm, 7km west of Klaustur (on Rte 206, 2km from Fjaðrárgljúfur canyon). Some rooms have private facilities, others share a bathroom. Breakfast is served in the on-site restaurant (dinner is also available, featuring farm-fresh lamb).
Hunkubakkar
Southeast Iceland