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overnight trip from Reykjavik

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Hello,
I'll be travelling in Iceland in July 2015. I'll be working in Keflavik with a couple days off to explore Reykjavik.

I would like to go for a 1 night stay somewhere not too far away (2.5 hours drive tops!). We are looking for a quiet village, nice hikes, decent food.... just a nice day to unwind and take in the scenery.


Anyone has a suggestion as to which small town I should be looking into? or even a general region?

The golden circle drive seems beautiful but I am afraid of it being too busy for us at that time of year.

thank you for any suggestions you might have!

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