Best Places in Iceland to Invest in Airbnbs, Short-Term Rentals in 2025

Last updated: March 31, 2025

Discover the most lucrative short-term rental markets in Iceland with AirROI's comprehensive investment guide. Whether you’re an experienced property investor or just starting your Airbnb journey, through detailed analysis of key metrics across premier global, our data-driven insights reveal where smart money is flowing in the short-term rental space. Using advanced market analytics and real performance data, we’ve identified investment hotspots that combine strong rental demand, favorable regulations, and optimal revenue potential.

Read on to explore the top-performing short-term rental markets that should be on every investor’s radar in 2025.

Explore Live Data

Top Short-Term Rental Cities in Iceland

Rank:#1Market:ReykjavikCountry:IcelandProperties:1,983Monthly Revenue:$2908.77Daily Rate:$256.47Occupancy:49.98%Regulation:Moderate
Rank:#2Market:KopavogurCountry:IcelandProperties:220Monthly Revenue:$1841.26Daily Rate:$233.85Occupancy:43.46%Regulation:Moderate
Rank:#3Market:SelfossCountry:IcelandProperties:208Monthly Revenue:$3915.04Daily Rate:$301.77Occupancy:52.47%Regulation:Moderate
Rank:#4Market:AkureyriCountry:IcelandProperties:203Monthly Revenue:$2742.10Daily Rate:$249.60Occupancy:45.13%Regulation:Moderate
Rank:#5Market:HvolsvöllurCountry:IcelandProperties:137Monthly Revenue:$3633.48Daily Rate:$266.53Occupancy:51.96%Regulation:Moderate
Rank:#6Market:HafnarfjordurCountry:IcelandProperties:135Monthly Revenue:$2327.63Daily Rate:$239.45Occupancy:46.60%Regulation:Moderate
Rank:#7Market:ReykjanesbærCountry:IcelandProperties:118Monthly Revenue:$2773.60Daily Rate:$220.41Occupancy:50.77%Regulation:Moderate
Rank:#8Market:GarðabærCountry:IcelandProperties:116Monthly Revenue:$2731.24Daily Rate:$335.27Occupancy:46.62%Regulation:Moderate
Rank:#9Market:MosfellsbærCountry:IcelandProperties:111Monthly Revenue:$2918.10Daily Rate:$274.68Occupancy:50.34%Regulation:Moderate
Rank:#10Market:HellaCountry:IcelandProperties:109Monthly Revenue:$4235.40Daily Rate:$300.98Occupancy:49.94%Regulation:Moderate
Rank:#11Market:BorgarnesCountry:IcelandProperties:107Monthly Revenue:$3450.59Daily Rate:$265.45Occupancy:51.03%Regulation:Moderate
Rank:#12Market:HöfnCountry:IcelandProperties:91Monthly Revenue:$4209.67Daily Rate:$285.23Occupancy:52.57%Regulation:Moderate
Rank:#13Market:AkureyrarbærCountry:IcelandProperties:85Monthly Revenue:$2116.85Daily Rate:$231.39Occupancy:47.63%Regulation:Moderate
Rank:#14Market:EgilsstaðirCountry:IcelandProperties:81Monthly Revenue:$2522.72Daily Rate:$220.68Occupancy:52.01%Regulation:Moderate
Rank:#15Market:KirkjubæjarklausturCountry:IcelandProperties:72Monthly Revenue:$7102.75Daily Rate:$347.85Occupancy:68.02%Regulation:Low
Rank:#16Market:SeltjarnarnesbærCountry:IcelandProperties:58Monthly Revenue:$2667.46Daily Rate:$260.20Occupancy:53.06%Regulation:Moderate
Rank:#17Market:VikCountry:IcelandProperties:55Monthly Revenue:$4561.50Daily Rate:$300.84Occupancy:57.39%Regulation:Low
Rank:#18Market:GrundarfjarðarbærCountry:IcelandProperties:55Monthly Revenue:$3874.86Daily Rate:$248.65Occupancy:53.47%Regulation:Moderate
Rank:#19Market:LaugarvatnCountry:IcelandProperties:54Monthly Revenue:$3254.83Daily Rate:$263.84Occupancy:49.60%Regulation:Moderate
Rank:#20Market:ReykholtCountry:IcelandProperties:48Monthly Revenue:$4939.10Daily Rate:$315.50Occupancy:53.92%Regulation:Moderate
Rank:#21Market:HveragerðisbærCountry:IcelandProperties:45Monthly Revenue:$4002.30Daily Rate:$305.46Occupancy:47.42%Regulation:Moderate
Rank:#22Market:VestmannaeyjabærCountry:IcelandProperties:43Monthly Revenue:$1841.41Daily Rate:$240.85Occupancy:40.67%Regulation:Moderate
Rank:#23Market:StykkishólmurCountry:IcelandProperties:36Monthly Revenue:$3642.56Daily Rate:$285.91Occupancy:50.63%Regulation:Moderate
Rank:#24Market:BúðardalurCountry:IcelandProperties:35Monthly Revenue:$1858.40Daily Rate:$195.90Occupancy:39.92%Regulation:Moderate
Rank:#25Market:Grímsnes- og GrafningshreppurCountry:IcelandProperties:34Monthly Revenue:$4664.03Daily Rate:$356.92Occupancy:52.30%Regulation:Moderate
Rank:#26Market:BláskógabyggðCountry:IcelandProperties:33Monthly Revenue:$3919.27Daily Rate:$296.24Occupancy:52.89%Regulation:Moderate
Rank:#27Market:DjúpivogurCountry:IcelandProperties:33Monthly Revenue:$2549.77Daily Rate:$283.79Occupancy:39.76%Regulation:Low
Rank:#28Market:SeydisfjordurCountry:IcelandProperties:33Monthly Revenue:$3825.21Daily Rate:$288.07Occupancy:57.96%Regulation:Moderate
Rank:#29Market:SiglufjörðurCountry:IcelandProperties:29Monthly Revenue:$2374.38Daily Rate:$319.94Occupancy:36.33%Regulation:Moderate
Rank:#30Market:ÍsafjörðurCountry:IcelandProperties:29Monthly Revenue:$1868.28Daily Rate:$215.41Occupancy:50.04%Regulation:Moderate
Rank:#31Market:HúsavíkCountry:IcelandProperties:27Monthly Revenue:$2683.22Daily Rate:$265.15Occupancy:56.24%Regulation:High
Rank:#32Market:FludirCountry:IcelandProperties:25Monthly Revenue:$3756.13Daily Rate:$309.89Occupancy:45.41%Regulation:Moderate
Rank:#33Market:LaugarCountry:IcelandProperties:25Monthly Revenue:$2162.23Daily Rate:$219.91Occupancy:51.20%Regulation:Low
Rank:#34Market:AkranesCountry:IcelandProperties:24Monthly Revenue:$3965.97Daily Rate:$253.44Occupancy:55.93%Regulation:High
Rank:#35Market:SvalbarðseyriCountry:IcelandProperties:23Monthly Revenue:$2587.60Daily Rate:$193.59Occupancy:52.08%Regulation:Low
Rank:#36Market:RifCountry:IcelandProperties:22Monthly Revenue:$787.91Daily Rate:$171.16Occupancy:24.00%Regulation:Low
Rank:#37Market:EyrarbakkiCountry:IcelandProperties:21Monthly Revenue:$2557.85Daily Rate:$187.32Occupancy:52.18%Regulation:Low
Rank:#38Market:FlateyriCountry:IcelandProperties:21Monthly Revenue:$1839.50Daily Rate:$283.02Occupancy:39.43%Regulation:Moderate
Rank:#39Market:BlönduósCountry:IcelandProperties:20Monthly Revenue:$2071.03Daily Rate:$211.75Occupancy:36.56%Regulation:Moderate
Rank:#40Market:SauðárkrókurCountry:IcelandProperties:20Monthly Revenue:$1892.98Daily Rate:$184.80Occupancy:46.53%Regulation:Low
Rank:#41Market:FlúðirCountry:IcelandProperties:19Monthly Revenue:$3671.03Daily Rate:$272.63Occupancy:52.42%Regulation:Moderate
Rank:#42Market:HólmavíkCountry:IcelandProperties:19Monthly Revenue:$1347.15Daily Rate:$198.27Occupancy:35.87%Regulation:High
Rank:#43Market:HúsavíkCountry:IcelandProperties:18Monthly Revenue:$2769.38Daily Rate:$264.70Occupancy:47.49%Regulation:Moderate
Rank:#44Market:KjósarhreppurCountry:IcelandProperties:18Monthly Revenue:$8807.48Daily Rate:$548.84Occupancy:62.61%Regulation:High
Rank:#45Market:ÓlafsfjörðurCountry:IcelandProperties:17Monthly Revenue:$2628.14Daily Rate:$260.90Occupancy:44.93%Regulation:Moderate
Rank:#46Market:ÓlafsvíkCountry:IcelandProperties:17Monthly Revenue:$2562.73Daily Rate:$207.27Occupancy:49.14%Regulation:Low
Rank:#47Market:ÁrnessýsluCountry:IcelandProperties:17Monthly Revenue:$2854.00Daily Rate:$249.82Occupancy:41.26%Regulation:Moderate

Our Methodology

At AirROI, we leverage advanced technology to process and analyze the world’s most comprehensive short-term rental dataset, helping investors make data-driven decisions.

Data Collection

  • Real-time data aggregation from tens of millions of listings globally
  • Comprehensive tracking of market-specific performance metrics
  • Local regulatory tracking

Data Processing

  • AI-powered analysis of booking patterns
  • Advanced machine learning for trend identification
  • Forward-looking market forecasting
  • Cross-market performance benchmarking

Key Metrics We Track

  • Occupancy rates and seasonal patterns
  • Revenue performance (ADR, RevPAR)
  • Market demand indicators
  • Investment metrics (ROI, operating costs)
  • Regulatory compliance requirements

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Discover Market Insights

All Markets in Iceland

AkranesBláskógabyggðBorgarbyggðCapital RegionDalabyggðFjallabyggðFlúðirGrímsnes- og GrafningshreppurHrunamannahreppurHúnabyggðHúsavíkKjósarhreppurMúlaþingMýrdalshreppurNortheastern RegionNorðurþingRangárþing eystraRangárþing ytraSkaftárhreppurSkagafjörðurSnæfellsbærSouthern PeninsulaSouthern RegionStrandabyggðSvalbarðsstrandarhreppurSveitarfélagið HornafjörðurSveitarfélagið StykkishólmurSveitarfélagið ÁrborgWestern RegionÁrnessýsluÍsafjarðarbærÞingeyjarsveit