Torfbærinn at Skógar
Though we are choosing to call this place Skógarbær (farm at Skógar) it is probably not named that. It is originally from the site it is on today at Skógar and shared the land with Skálarbærinn and the Folk Museum at Skógar. Only a few hours outside of Reykjavik (or many hours - depending on how often you stop), it was a worthwhile trip to visit.
This turf house is located on the same grounds as the Skógar Folk Museum and the Skálarbærinn (shown also on this page). The houses reminded us of the hobbits from fictional literature from the outside, but when you went into each of the rooms it looked more like a farmhouse like where we grew up.