What are the best Airbnb markets in Iceland?

Airbtics ranks short-term rental markets in Iceland by Market Grade. The grade compares yield (annual revenue divided by property price), year-over-year revenue growth, and occupancy, then adjusts for regulation. The highest-graded market in this dataset is Reykjavik. The main table lists markets in that order; use the Market Explorer to filter by budget, regulations, and more.

How many Airbnb markets does Airbtics track in Iceland?

We currently analyze 1 active short-term rental markets in Iceland with listing supply, median occupancy, ADR, and revenue estimates.

What is the average Airbnb occupancy rate in Iceland?

The national average occupancy rate across tracked markets is 77.00% (LTM). Rates differ by city. Use the rankboard on this page, or open a market page for that city's numbers.

How do I compare Airbnb markets in Iceland?

Use the occupancy vs ADR rankboard on this page for a quick view, or open the Market Explorer to compare markets side by side, change chart axes, export to Excel, and save markets to a watchlist.

How can I estimate Airbnb income in Iceland?

Use our Airbnb income calculator to estimate revenue for a specific address, or open any market link below for median revenue and occupancy benchmarks.

Best Airbnb Markets in Iceland (2026)

Based on Airbtics data from September 2025 to August 2026, this page ranks the best Airbnb markets in Iceland by Market Grade. The grade compares short-term rental yield, year-over-year revenue growth, and occupancy (demand), then adjusts for local regulation. The table also shows listing count, average daily rate, and annual revenue for every market.

Markets on this page are ranked by the Airbtics Market Grade, not by the number of listings. The grade compares each market with the other markets in this ranking on three measures, then adjusts for local short-term rental regulation.

Yield: Annual short-term rental revenue divided by property price. A higher yield ranks higher.
Growth: Year-over-year change in revenue. Faster revenue growth ranks higher.
Demand: Average occupancy rate over the last 12 months. Higher occupancy ranks higher.

Stricter short-term rental regulation lowers the letter grade. Occupancy, average daily rate, and annual revenue are shown for every market. Exact yield and revenue growth are published for the three highest-graded markets. For every other market those two figures are in Market Explorer. The rankboard plots the same markets by occupancy and average daily rate, and the table under the chart lists those values in text.

Learn more about how we collect the data and accuracy

Last updated: 16th October, 2026

Average Occupancy Rate i

77.00%

Average Annual Revenue i

$71,735

Average Daily Rate (ADR) i

$252

YoY Supply Growth i

43.57%

YoY Revenue Change i

9.52%

Top Iceland Cities for Airbnb in 2026

Tick the markets you like to track their revenue, occupancy, and ADR in your Airbtics watchlist. Free to start, up to 10 markets.

	Position	Market Grade	Market Name	Regulation	No of Listings	Avg. Occupancy Rate	Avg. Daily Rate	Revenue	Short-term Rental Yield	Revenue Growth
	1	A	Reykjavik	Lenient	1,889	77% 🚀	$252	$71,735	21.0%	+9.5%

Data Seen By

BiggerPockets

Market Explorer

Filter markets by occupancy, price, and yield

Filter Iceland by occupancy, ADR, yield, rent gap, and property price, then compare markets side by side.

Open Explorer

Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in Iceland. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

Explore Interactive Tool

Why Invest in Airbnb Iceland in 2026?

The highest-graded short-term rental markets in Iceland are Reykjavik. The table ranks every tracked market by Airbtics Market Grade. Occupancy, average daily rate, annual revenue, yield, and revenue growth are the figures behind that grade.

Top 3 Airbnb markets in Iceland by Market Grade

These are the three highest-graded Airbnb markets in Iceland. Market Grade compares yield, revenue growth, and occupancy (demand) with the other markets on this page, then adjusts for short-term rental regulation. The chart repeats those three percentiles in text so the ranking is readable without the graphic.

Rank 1 — Reykjavik (Grade A)

Reykjavik is rank 1 of 1 markets in this Iceland ranking by Airbtics Market Grade A, with 21.0% short-term rental yield, 77.0% occupancy, and +9.5% year-over-year revenue growth.

The market shows an average daily rate of $252, annual revenue of $71,735, a rent gap of 5145.3%, 1,889 active listings, lenient short-term rental regulation, and a typical 2-bedroom property price of $450,000.

Market gradeA
Yield21.0%
Revenue growth+9.5%
Occupancy77.0%
Average daily rate$252
Annual revenue$71,735
Rent gap5145.3%
Active listings1,889
2-bedroom price$450,000
RegulationLenient

Market Rankboard: Iceland

Each dot is a vacation rental market in Iceland, plotted by occupancy rate (x-axis) and average daily rate (ADR) (y-axis). Dashed lines mark the national median.

Iceland Airbnb markets rankboard scatter chart showing occupancy rate versus average daily rate (ADR)

Occupancy rate and average daily rate for each Iceland market plotted in the chart above, in Market Grade order.
Market	Occupancy rate	Average daily rate
Reykjavik	77.0%	$252

Compare property prices, short-term rental yield, rent gap, annual revenue, and supply growth in the Airbtics Market Explorer watchlist.

See all Airbnb markets in Iceland

Browse all 1 markets we track in Iceland. Each link opens the market's Airbnb revenue and performance data page.

Reykjavik

Iceland Airbnb market FAQs

What are the best Airbnb markets in Iceland?
Airbtics ranks short-term rental markets in Iceland by Market Grade. The grade compares yield (annual revenue divided by property price), year-over-year revenue growth, and occupancy, then adjusts for regulation. The highest-graded market in this dataset is Reykjavik. The main table lists markets in that order; use the Market Explorer to filter by budget, regulations, and more.
How many Airbnb markets does Airbtics track in Iceland?
We currently analyze 1 active short-term rental markets in Iceland with listing supply, median occupancy, ADR, and revenue estimates.
What is the average Airbnb occupancy rate in Iceland?
The national average occupancy rate across tracked markets is 77.00% (LTM). Rates differ by city. Use the rankboard on this page, or open a market page for that city's numbers.
How do I compare Airbnb markets in Iceland?
Use the occupancy vs ADR rankboard on this page for a quick view, or open the Market Explorer to compare markets side by side, change chart axes, export to Excel, and save markets to a watchlist.
How can I estimate Airbnb income in Iceland?
Use our Airbnb income calculator to estimate revenue for a specific address, or open any market link below for median revenue and occupancy benchmarks.

For short-term rental market analysis, visit our Airbnb Analytics app.

Estimate Your Airbnb Income in Iceland

Ready to start looking for the most profitable short-term rental investment opportunities in Iceland?

Use our Airbnb calculator to quickly and accurately estimate the earning and profitability potential of any city, neighborhood, and area.

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For trends, supply, and year-over-year changes, see the 2025 short-term rental report for Iceland.