Best Budget Stays in Búðardalur, Iceland
Budget stays in Búðardalur come down to three properties, a straightforward guest house, a capsule hostel and a family-run guesthouse with its own restaurant, all inside the village rather than out on the farms along Route 60. None of the three post a listed price in this evidence, but all three rank among the better-reviewed places to sleep in Búðardalur, with two-person scores of 8.8, 8.5 and a perfect ten. Búðardalur itself has no hostel scene beyond this one capsule property, so budget travellers passing through on the way to the Westfjords have a narrower choice than in a larger town, but what is here is well kept.
Budget & guesthouse · Búðardalur in numbers
Three Rooms, One Village Centre
The Space capsule Hostel Árblik by Welcome Iceland is the clearest budget pick, with capsule rooms that still include a private bathroom, a tea and coffee maker and free WiFi, plus garden or mountain views depending on the capsule. A twenty-four hour front desk covers late check-ins after a long drive on Route 60, and the shared kitchen and dining area keep food costs down for longer stays. It sits a hundred and forty kilometres from Reykjavík Domestic Airport and close to the Búðardalur church and museum, both walkable once checked in. Reviewers gave it a perfect ten for a two-person trip on nineteen reviews.
Dalía keeps things simpler, a guest house with private bathrooms, showers and wardrobes in every room and free on-site parking, without a restaurant or communal kitchen to fall back on. What it does offer is multilingual staff, covering English, Icelandic and Swedish, useful for budget travellers who would rather not rely on a translation app after a long day of driving Route 60. At an 8.4 rating and 8.8 for two-person trips, it holds up well against the pricier stays in the village despite its smaller scale and only fourteen reviews on record so far.
Gil guesthouse costs more attention than the other two but earns it with the widest food offering of any budget stay here, a family-friendly restaurant serving dinner with vegetarian and vegan options, pizza and a barbecue grill, plus a breakfast that includes juice and cheese. Rooms come with private bathrooms, mountain views, a work desk and soundproofing, unusual specifications for the price bracket. It is the furthest from Reykjavík Domestic Airport of the three, at a hundred and eighty-nine kilometres, but the closest to Skriðuland Dalasýsla, and its 748 reviews make it the best-reviewed budget stay in Búðardalur by volume.
All three budget properties sit inside or close to Búðardalur village rather than out on the farms, which matters for anyone without their own car trying to reach a restaurant or shop after dark. None list a swimming pool or spa facility, and none claim a beachfront position the way the pricier stays further along this list do. What they share is free WiFi, free parking and, in Gil's and the hostel's case, a working kitchen or restaurant on site, which keeps a tight budget from turning into an expensive evening spent driving Route 60 in search of dinner.
Búðardalur is not set up as a backpacker stop, it is a working village with a shop, a harbour and a scattering of farms, so the budget options here read more like a modest guest house than a hostel strip. Dalir district around it is sheep and horse country rather than a tourist corridor, which keeps rates from climbing the way they do closer to Reykjavík or along the busier stretches of Route 1. Travellers choosing budget stays here are usually passing through toward the Westfjords or stopping for Eiríksstaðir, not settling in for a week, and the properties are built around that shorter stay.


