Newbie with questions

Do know anyone in Reykjavik? Maybe there are guest houses available that are not published. Most Reykjavik listed accommodations are $200 a night or more. That said, B&Bs in popular areas are near that price range in the US. Will you be solo or with a group?

Last month we stayed at the Student Hostel on the University of Iceland campus. We were late planning our trip and this was one of the more affordable options. Not exactly a B&B, but an alternative to hotels, and it met our needs for our short stay. We had a double room with private bathroom and access to a shared kitchen. We are older adults, and saw other adults as well as groups of study abroad students. For example, our kitchen was shared with a group from Boston University.

(We didn't use public transport so I can't help you there, but there was a bus stop just outside the hostel building. And it's easy walking distance to the downtown area.)

Yes, you can get around the city using buses. The buses are run by Strætó, www.straeto.is

Yes, there are bed and breakfasts in Reykjavik. I have not stayed at any of them as we have always opted for hotels. FWIW, many hotels do include breakfast in case that is what you were wondering about.

There is a local bus to get around, but honestly Reykjavik is so compact that we have never needed to use a taxi, bus or our rental vehicle. We park at the hotel and then walk everywhere.

I obviously do not know your plans, but will say that 7 days in Reykjavik is not ideal. IT is great for day/night of arrival, but then getting out and seeing the country is what I would recommend. Day trips from Reykjavik mean a lot of wasted time with backtracking etc. I only share this with you in case you did not know:)

Kathy, since you are a newbie, can you share your plans with us? 7 days in Reykjavik is usually 6 days too long.