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What better way to revel in the beauty of Iceland than stay in a tiny house right in nature. There are hundreds of amazing Airbnbs found all over the country. We booked 7 incredible free-standing houses for our trip along the Ring Road. Focusing on tiny houses, cottages, or cabins, there were several great options located in small villages or on farms in the middle of nowhere. Each house had everything you would find in a studio apartment: a kitchen, bathroom, and large room for living and sleeping. Cooking our dinners in the Airbnb in each night saved us hundreds of dollars in food costs, especially in a pricey country like Iceland. Here are the 7 Airbnbs that we booked and our experience spending the night in Iceland's nature.

Grundarfjörður Guesthouse with a panoramic view

Tip 1: Book your accomodations as soon as you can.

Iceland is rapidly growing in popularity and the hospitality industry in Iceland has not be able to keep up with the demand. To avoid having to sleep in the back of your car, book your accomodations now! If you wait to long you run the risk of not finding anything or paying far more than you should. We visited Iceland in early June (right at the beginning of busy season) and booked our accomodations 10 months in advance.

tip 2: Use this link to get $40 off your first airbnb rental!

Kirkjubæjarklaustur Holiday House

The first night in Iceland we spent in this tiny house on a farm between Vik and Kirkjubæjarklaustur. It was only a minute off the Ring Road, or Route 1, but felt completely isolated. The house sits next to four others of different sizes and styles were. Just being two people, we booked the cheapest of the five, but there are options for groups up to 10 guests. In the summer, you can watch the sheep grazing from the front porch. The inside is fairly ordinary, but that is not the reason to come to Iceland. Be sure to pick up groceries on your way to the cabin in Vík to cook up on the hot plates for dinner.

The mornings are so incredibly quiet except for the occasional vocal sheep and the soft flow of the river below. If you come during the winter, be on the lookout for the northern lights. If the conditions are right, you are sure to see it without light interference.

We only spent one night – our first night in Iceland – here on our way around the island but it was the perfect way to start our journey.

Draumaland in Höfn

"Draumaland", meaning dream land in English, is the perfect way to describe this apartment. While not completely free-standing, this charming converted barn was an ideal place to stay in this small fishing village. Höfn is one of the largest towns in southeast Iceland with just 2,167 residents. This is one of the only Airbnbs located on a residential street in this list but was chosen because of the beautiful sea views within walking distance.

The town of Höfn itself is more residential than touristy, with some laws restricting the amount of Airbnbs allowed. Just down the street is the town's community pool where you can meet locals or just partake in one of Icelanders' favorite activities. The surroundings of Höfn are stunning. Walk south of town to gaze at the many fishing boats in the harbor or the calm sea on either side with the Vatnajökull glacier in the distance. Höfn literally means harbor and is found at the tip of a small Peninsula.

The Airbnb itself has a neat sleeping loft above the main living area. The bathroom is up in the loft as well, to prevent any embarrassing falls in the middle of the night. The short slanted roof in the loft provides an amusing challenge for anyone over 4 ft tall. Downstairs there is a kitchen and living room, complete with a table allowing you to enjoy a meal overlooking an adorable garden.

Egilsstaðir Stormur Farm Cottage

Situated in a picturesque valley surrounded by snowcapped mountains, Stormur cottages is an amazing place to stay in east Iceland. The cottages are located on a horse farm with a beautiful lupine-lined drive. This is another great place to spot the northern lights on a clear winter night.

The farm is just 10 minutes away from Egilsstaðir to get dinner at their restaurants or from their grocery stories to cook back in the cabin.

The horses were very friendly and immediately flocked to me as I walked up.

You can also book these cottages via Booking.com.

Laxárdalur Cabins near Húsavík

If seclusion is what you want, Laxárdalur cabin is where to stay. These cabins are found at the end of a long unpaved road in the beautiful Laxá valley, where very few tourists go. It is 45 minutes from Myvatn and the Ring Road. It is so tucked away, google maps cannot locate it (however, we did have luck with Apple maps).

The cabins are very modern, a nice contrast to the pasture setting.

This is the only place we did not actually stay at due to a problem with double booking. However, the hosts were extremely hospitable and paid for us to stay in another cabin nearby, which we also enjoyed.

Akureyri Apartment

This spacious apartment right in the heart of Akureyri – Iceland's second largest city – is within walking distance of restaurants, nightlife, shops and the harbor. It has separate rooms with a large bathroom complete with heated floors.

The best part of this apartment (and why we chose it) is the washer and dryer. We stayed here exactly half-way in on our journey around Iceland, which allowed us to freshen up our clothes for the 2nd half.

Grundarfjörður Guesthouse with a panoramic view

Hands down our favorite place we stayed. This fantastic cabin is located on a sheep farm with phenomenal views of Kirkjufell mountain on the Snæfellnes Peninsula. You can't help but spend hours looking out at the ocean and mountain view from the floor-to-ceiling windows, watching the tide rise and fall. Be sure to be out on the porch to witness one of the most beautiful sunsets.

I am not a dog person, but they have two incredibly friendly Border Collies who are eager to cuddle. Behind the cabin is a sheep pasture at the foot of steep mountain cliffs.

There are 2 cabins on the property, which is just 5 minutes outside of the town of Grundarfjörður.

Reykjavík Marina Studio Apartment

The last four nights of our trip we stayed in this studio apartment with breathtaking views of Reykjavík harbor. The apartment was centrally located with free parking (which can be challenging to find downtown). This was a base for visiting the sights around and in Iceland's capital. The apartment is located in a large apartment complex, giving you the feeling of what it would be like to live in this amazing city.

The apartment itself has a unique modern style. It is within walking distance of everything in Reykjavík and is right across the street from harbor-side restaurants.