Modrudalur is the highest situated and still inhabited farm of the country (469m). Vast areas in the highlands belong to the farm and the sheep can be grazed almost the whole year round, because this part of the country lies in the rain shadow of the great icecap Vatnajökull. Road no. 1 passed through in the immediate proximity of the farmhouses, but was moved further north in 1998.

The church was built by the late farmer Jon Stefansson in 1949 to commemorate his wife. He also decorated it inside and painted the altarpiece. Just east of the farm is a crossing. The road to the south branches in many directions and one of them leads to the popular Kverkfjoll area. The distance from the capital is 522 km by the Whale Bay tunnel.