So you want to spend TIME in Volcano National Park - seeing the lava by doing the night hike - arriving early to hike in the morning - things like that? Then you absolutely can't beat staying in Volcano (the town, not the crater). Well, you could be a LITTLE closer if you wanted to stay in the National Park lodge itself, but they only allow four to a room and we're a family of five, so... to Volcano Village it was.
There are no motels in Volcano—only B&B's and rental houses. We like privacy and have children, so we opted for a rental house and came upon Haunani House. Find it at Volcano Hideawaysif it appeals to you and ask for Todd, he has other houses too and is a wonderful source of advice.
Haunani House is a mere mile from the entrance of the park and is wonderfully landscaped with flowers and various greenery. It has three bedrooms, two bathrooms, a kitchen (no dishwasher though), living room, and a (free) washer and dryer (very helpful!). He's redone the house interior - and done it well.
For those that need them, there is a television and phone. He also provides some VCR tapes. For cold nights, there is a gas stove/heater in the living room. You can easily walk to anywhere in the village itself which has two SMALL general stores, a post office, and a few eateries as well as a farmer's market if you're there on the right days. Todd can offer more info on the days/times. The privacy, yet closeness to it all, is really nice. We'd easily stay there again and enjoyed our visit. The guest book listed many satisfied travelers from points afar as well. We had fun reading about their visits.
We chose Volcano Village as a place to spend 5 nights and opted to see the National Park (2½ days), Hilo, Mauna Kea Summit, Akaka Falls, Rainbow Falls (all in 1 day), the Puna District and Kalapana (the village the lava destroyed in the 90ºs - ½ day for our visit) from there. While it meant some additional driving, it kept us from having to shift lodging too many times, and kept us from the crowds of Hilo. I'd also MUCH rather drive "home" from Hilo after we were done than to drive back to Hilo after a night hike to see lava! By the way, Hilo is about a 35-minute drive, depending on traffic, all on decent roads (few streetlights). Kona, is a good 4½ hours away.
As an additional bonus with Haunani House, at the time we stayed, Todd offered the fifth night free if you stayed 4 nights. We took him up on that, and it worked out well for our needs and budget.