We spent most of the day driving down the east coast of Iceland and admiring the beauty around us. It was so fun to be able to pull over on the side of the road and get out and take pictures and have no one else around. I felt like I was in Middle Earth for most of the drive.
Then we stopped in Hofn and got settled in Hofn Hostel and walked around the little town. Since it was a bank holiday and most places were closed, we made dinner in the hostel kitchen and just relaxed the rest of the day.
The 3 of us stayed in a room in room for 4 for 9600 kr (~$76), so it came out to about $28 per person.