Where to stay
In Iceland there are several options for accommodation for every taste and budget. Hotels, camping, cozy bed & breakfast and cottages are the best solution for travelers, but if yours is a long-term stay, you should search for accommodation on the general accommodation rental market.
If looking for rentals in Iceland you can check:
For some more general information on possible accomodations, take a look here.
Student flats are available near most of the universities and they are intended for individuals and families. The Student Housing Community offers accommodation for individuals, couples, families and exchange students, check out the website here.