On our trip to Izu Peninsula, we wanted to stay in a traditional japanese ryokan but it was out of our budget so we decided to look for different hostel , affordable ones. We Zen No Yu in Kawazu.
It’s about 15-20 minutes by bus from Kawazu Station and about 1.5 hours if you try to walk all the way to it.
The food was absolutely lovely and only for 1200yen. Everything was fresh and the staff were so nice they even explained each dish and how to eat them.