Selfoss

South Iceland's largest town (about 7,500 people), on Route 1 at the Ölfusá river crossing. It's the natural gateway to the Golden Circle, south coast, and highlands, and works well as a base if you'd rather avoid Reykjavík prices — accommodation here is typically 20-30% cheaper.

The food scene has improved noticeably in recent years. Tryggvaskáli is the standout restaurant, in a historic building by the river. Kaffi Krús is good for lunch, and the Krónan supermarket is the cheapest grocery option for stocking up on road trip supplies. The Bobby Fischer Center (yes, the chess player — he spent his final years here) is a niche but interesting visit.

Selfoss is 50 km from Reykjavík (about 45 minutes' drive). It's where Route 1 meets the roads heading to Þingvellir, Geysir, and the south coast, so you'll likely pass through at least once. The Saturday market in summer at the town centre is worth a stop for local dairy, bread, and lamb products.