Norðurfjörður (GPS 66° 3’3.88″N 21°32’58.67″W) is located in the Westfjords, on the northwest side in an area called Strandir. This is the least populated municipality in Iceland with a population of 50 people. The distance from Reykjavík is 336 km ( 208 miles ), the last 84 km is gravel road. Please check road conditions before traveling to Norðurfjörður, especially during the winter.
Accommodation
A list of guesthouses, cottages and camping sites can be found at : (http://tjalda.is/en/urdartindur/)
Services and leisure
It is a 15 min walk to a restaurant that offers local fish and lamb dishes. Other services include a gas station and a grocery store. Just 3 km away from Norðurfjörður, is the stand alone seaside geothermal swimming pool, named Krossaneslaug.
https://www.lonelyplanet.com/iceland/nordurfjordur/activities/krossneslaug/a/poi-act/1413817/1318093 .