Best Airbnbs in Iceland (+ Top-Rated Experiences!)

If you’re planning a trip to the adventure-filled volcanic island, you’ll want to check out this highly curated list of the best Airbnbs in Iceland. We’re sharing our favorite stays to meet every need — from budget-friendly, to the most unique accommodation, to some seriously incredible properties!

Situated in between the North Atlantic and Arctic oceans, the small island nation of Iceland is like no other place in the world.  

The volcanic island may be small, but don’t underestimate the adventure that is to be had here. With waterfalls around every turn, glaciers and black sand beaches, Iceland is a photographer’s dream and a nature-lover’s paradise. 

Whether you’re visiting this European gem on a short layover or for an extended vacation, you’ll want to check out this list of the best Airbnbs in Iceland. 

Iceland Airbnbs article contents

We organized this list of Airbnbs in Iceland based on popular itineraries and bucket list experiences. Click on one of the categories below to jump to that section of the article, or just keep scrolling. 

• Airbnbs in Reykjavík
• Airbnbs for Northern Lights viewing
• Igloos & other unique stays in Iceland
• Budget Airbnbs in Iceland
• Airbnbs near the Blue Lagoon (Reykjanes peninsula)
• Airbnbs near the Golden Circle
• Airbnbs near the Ring Road route

Bonus categories:

• Why stay at an Airbnb in Iceland
• Where to stay in Iceland
• Noteworthy Iceland Hostels and Hotels
• Best Airbnb Experiences in Iceland
• Perfect Iceland itinerary

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Why stay at an Airbnb in Iceland

Renting an Airbnb is one of our favorite ways to get to know a place. Airbnbs in Iceland are as varied and unique as the country’s landscape. Plus, they offer experiences you won’t get in a hotel:

• Experience the country from a local’s point of view
• Stay in a location outside of the major hotel areas
• Enjoy the comforts of home like a stocked kitchen or laundry facilities
• Stay together with your family or larger group
• Save money on longer stays
• Try out a unique accommodation like an ‘igloo’, glass house, or camping pod

Psst! We have an entire article with our best Airbnb tips, from setting up your profile to exactly which filters we use when we book.

Where to stay in Iceland

Where to stay in Iceland depends a lot on your itinerary and what you plan to do while you’re there. Here are some of the top towns to stay in and what they are known for:

• Reykjavík: Iceland’s capital and largest city. You will most likely begin and end your journey here as it’s close to the International Airport.
• Reykjanes peninsula: The peninsula just south of Reykjavík where the famous Blue Lagoon and the International Airport are located. Keflavík is the largest town, 50 km south of Reykjavík, and a great place to stay if you’re taking advantage of a stop-over flight on IcelandAir. 
• Selfoss and Hveragerði: Both towns on the well-known Golden Circle loop are great places to stay if you want to make a night of it instead of returning to Reykjavík.
• Akureyri: Iceland’s second largest city located on the Northern coast and a popular stop on the Ring Road itinerary. 
• Snæfellsnes peninsula: This area, just 90 km long, is often overlooked by tourists on the Ring Road tour, however, it’s home to some of Iceland’s most dramatic landscapes and many small fishing villages. 

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Airbnbs in Reykjavík

As the largest city in Iceland nearest the airport, you will likely begin and end your journey here. No matter how long you plan to stay, you’ll want to check out our top things to do in Reykjavík so you can plan your stay based on where all the activities are.

Renovated 1 BDR by the church

Quiet and modern 1-Bedroom near Hallgrímskirkja

• Location: Downtown Reykjavík
• Budget: $$$$
• Number of guests: 2
• Minimum stay: 1 night
• Superhost ✔️

This bright, beautifully updated one-bedroom apartment is steps from Reykjavík’s iconic Hallgrímskirkja church and within walking distance of top restaurants, cafes, shops, and nightlife. 

Featuring a fully equipped kitchen, king-size bed, dedicated workspace, and modern bathroom, it’s ideal for couples or small families. Guests consistently praise the central location, stylish design, and easy self-check-in, making it a perfect home base for exploring Iceland’s capital.

“We had a wonderful stay at Freddie’s apartment and couldn’t have asked for a better base in Reykjavík. The description is completely accurate: the space is beautifully renovated, bright, modern, and extremely comfortable […] We felt very much at home and would absolutely stay again if we return to Reykjavík. Highly recommended!” – Maryse, December 2025

Downtown Apartment

Central Reykjavík apartment with great walkable location

• Location: Downtown Reykjavík
• Budget: $$$$
• Number of guests: 2
• Minimum stay: 1 night
• Superhost ✔️

This highly rated Airbnb is a comfortable, well-equipped apartment right in the heart of Reykjavík, just steps from restaurants, shops, museums, and the main downtown streets. 

Guests enjoy easy self-check-in, city skyline and park views, a full kitchen, fast Wi-Fi, and a large TV with streaming apps, making it a perfect base for exploring downtown and nearby attractions. 

“Great apartment, walkable to many places, near groceries n restaurants option nearby. Complete high quality kitchen utensils, if you opted to cook. Easy check in, quiet, clean, private apartment. Recommended.” – Hariyanti, December 2025

Deluxe Penthouse Downtown

Modern industrial downtown Reykjavík apartment

• Location: Downtown Reykjavík
• Budget: $$$$
• Number of Guests: 4
• Minimum Stay: 1 night
• Superhost ✔️

Centrally located in downtown Reykjavík, this luxurious 2 bedroom apartment has everything you need to enjoy your stay in Reykjavík. This stylish abode has only 5 star reviews and includes amenities like a washer and dryer and baby essentials like a high chair and crib if necessary. 

Guests love how helpful and responsive the hosts were. 

“The apartment is beautiful, the views are magnificent and the location is hard to beat. In addition, the host is super nice, communication was easy and made us feel at home. Next time we visit Reykjavik we would definitely stay here. Everything was perfect.” – Veronica, August 2021

Airbnbs just outside of Reykjavík

These stays may not be right in the heart of town, but they are close enough to easily commute and we thought they deserved a mention. Plus, staying outside of town gives you the opportunity for bigger spaces if you are traveling with a family or larger group.

Traditional Black Timber House

Beautiful Icelandic home near on the Ring Road loop

• Location: Borgarnes
• Budget: $$$$
• Number of guests: 4
• Minimum stay: 3 nights
• Superhost ✔️

Conveniently located in Borgarnes, at the entrance of the Snæfellsnes peninsula, this beautiful 2 bedroom home is just over 75 km from Reykjavík, about a one hour drive. It’s also just off Hwy 1, the Ring Road. Enjoy all the comforts of home in this beautifully decorated space from the fully-stocked kitchen to the deep soaking tub in the bathroom. 

Guests rave about the stylish decor and remarkable views. 

“This house is a gem! The house is beautifully decorated, cozy, and the view is amazing! It was the perfect place to end our trip and relax but also a great base to discover the Snæfellsnes peninsula.” – Lawrence, August 2020

Quiet Secluded Lake Home

Secluded lakeside cottage with hot tub

• Location: Mosfellsbær
• Budget: $$$$
• Number of guests: 4
• Minimum stay: 1 night
• Superhost ✔️

This highly rated cottage in Mosfellsbær offers stunning lakefront views and a peaceful setting just 40 minutes from Reykjavík. 

Perfect for couples or small groups, it features a private hot tub and spa-like comforts on a deck overlooking Meðalfellsvatn—ideal for soaking with sunset views or even the Northern Lights when conditions align. 

Guests love the quiet location, cozy interiors, and easy access to both nature and Reykjavík-area attractions, making it a great choice for a scenic Iceland stay.

“We absolutely loved our stay! The home is beautiful, cozy, well equipped, and offered privacy and beautiful views. […] A great basecamp that felt tucked away, but with conveniences like groceries, etc. just a short drive away. We would definitely stay here again!” – Ariel, November 2025

MARIA Luxury Villa

Large luxury home with hot tub and private sauna

• Location: Saurbær
• Budget: $$$$
• Number of Guests: 8
• Minimum Stay: 2 nights
• Superhost ✔️

Surrounded by nature near the Snæfellsnes peninsula, this 4 bedroom luxury home offers plenty of amenities for a larger family or group. The single story villa includes a large terrace, outdoor hot tub and sauna, play room for kids, fully equipped kitchen and in house laundry.  

Guests love the amazing private amenities included in the property. 

“Beautiful house, sauna and hot tub were amazing. Gestur was very helpful and accommodating… Location is a great hub for driving around the vesturlands.” – Joshua, June 2021

Honorable Mention:

• Seaside Apartment: 2 bedroom apartment on the coast, 15 minutes from Reykjavík

Best Airbnbs for Northern Lights Viewing

Many people come to Iceland during the winter months, braving the cold weather and long nights in hopes of catching a glimpse of the Aurora Borealis, aka the Northern Lights. This natural phenomenon can be witnessed on a clear night in Iceland from September through March. 

We picked out some neat Iceland Airbnbs that we thought would be especially good for Northern Lights viewing. 

Nónsteinn

Budget-friendly tiny house with incredible views

• Location: Grundarfjörður
• Budget: $$$
• Number of Guests: 2
• Minimum Stay: 1 night
• Superhost ✔️

Enjoy life in the Icelandic countryside in this cozy and romantic tiny cottage on the Snæfellsnes peninsula. This guest house is the perfect no-fuss space for a couple or solo traveler looking for adventure. Plus, it’s uniquely situated in an area that gets incredible Aurora sightings with mountains in the backdrop. 

Guests raved about the experience staying in such a unique space and location.

“Probably the coolest Airbnb in all of Iceland! This place was such a treat and a memory we will hold dear to our hearts for years to come. Unbeatable views in cozy quarters. Once in a lifetime experience here!” – Ashley, August 2021

Kolsstaðir – Piece of Heaven

Cozy countryside home in West Iceland

• Location: Búðardalur
• Budget: $$$
• Number of Guests: 2
• Minimum Stay: 3 nights
• Superhost ✔️

Aptly named a “Piece of Heaven” this gorgeous mountain home is located in West Iceland, 15 minutes outside of the small fishing village of Búðardalur. The cottage is designed in the old Icelandic country style, but with modern upgrades like a wood stove and modern kitchen.  

Guests love the remote feeling of getting away from it all. You cannot beat the Northern Lights views from the countryside. 

“A truly fantastic place to stay. Stunning views and the coziest of homes. All the amenities you could ask for, Kristjan thinks of everything. Won’t find a better value!” – Logan, August 2021

Modern Glass cottage

Luxurious glass cottage with hot tub

• Location: Hella
• Budget: $$$$
• Number of Guests: 2
• Minimum Stay: 1 night
• Superhost ✔️

An experience like no other, fall asleep under the stars in the comfort and warmth of your tiny glass home. This cozy and luxurious private cottage is remote enough that you won’t feel a lack of privacy, even when you’re surrounded by windows. The space includes a fully equipped kitchen, dining area, and outdoor terrace where you can relax in your private hot tub. 

Guests raved about the unique experience. 

“Absolutely beautiful stay in a remote location with great, simple amenities. This would be the perfect winter time stay with the hot tub and northern lights, although it was just as great in the summer!” – Kyla, August 2021

Igloos & other unique stays

Speaking of all-glass cottages (see above in case you missed it)… We found a few other unique properties on Airbnb in Iceland. 

Sky sighting Igúhús

Wooden dome house “igloo” in the countryside

• Location: Árskógssandur
• Budget: $$$
• Number of Guests: 2
• Minimum Stay: 1 night
• Superhost ✔️

The Iglúhús, as it’s known, is a unique property in the countryside of northern Iceland. Spend a night under the stars, sleeping in this dome-shaped house with above-bed windows. The space is actually a guest house on the main property of the hosts and does not include a shower or running water. There is a kitchenette with kettle, toaster and coffee maker, and a toilet in the shed next door.  

Guests rave about the magical experience of staying in such a unique home and sleeping under the stars. 

“Such a unique and amazing experience! The home is so well thought out to the very last detail and the location is gorgeous. Highly recommend staying for the experience!!!” – Hillary, August 2021

Best Budget Airbnbs in Iceland

If you’re planning a trip to Iceland, or have traveled there in the past, you probably already know it’s a notoriously expensive country to travel in. That’s why we included some of the most budget-friendly Airbnb stays we could find. 

Loft apartment in Selfoss

Converted garage apartment on the Golden Circle

• Location: Selfoss
• Budget: $$
• Number of Guests: 2
• Minimum Stay: 5 nights
• Superhost ✔️

Right in the heart of Selfoss on the Golden Circle, this innovative host turned their garage into a loft apartment used as a guest house. The small space is well-designed for comfort and usability and includes a lofted double bed, small kitchen, private bathroom and a parking spot. 

Guests love the thoughtfulness of the space and the desirable location in the heart of Selfoss.

“A lovely little place with delightful and stylish touches in a great location!” – Tessa, July 2019

Laugarfell

Private room in communal nature lodge

• Location: Egilsstaðir
• Budget: $$
• Number of Guests: 2
• Minimum Stay: 1 night

Located in a remote part of the eastern Icelandic Highlands north of Mount Snæfell, is a dreamy nature cabin and perfect stay for those looking to escape. Laugarfell accommodates 28 people with private rooms, shared bathrooms and communal living spaces including a kitchen. 

There are two natural hot spring pools on the property, known for their healing powers, and perfect to soak your aching bones after a long day of hiking to the many natural attractions in the area. 

Guests love the remote locations and cozy welcoming cabin feel. 

“Olga was so helpful! She helped point out the northern lights and gave us suggestions for the rest of our trip. We loved the remote location, the incredible hike, and the cozy room.” – Sarah, September 2018

Honorable Mention:

• Airy Seaside Getaway: An affordable one bedroom apartment in Reykjavík

Airbnbs near the Blue Lagoon (Reykjanes Peninsula)

You’ve probably heard of Iceland’s iconic Blue Lagoon or seen photos of this geothermal wonder on Instagram before. Located on the Reykjanes Peninsula, just south of Reykjavík, this popular natural spa is near the international airport and can be easily visited on a day trip or long layover. 

Ocean Front Villa

Renovated farmhouse with private beach and hot tub

• Location: Vogar
• Budget: $$$$
• Number of Guests: 2
• Minimum Stay: 3 nights
• Superhost ✔️

A stay in this iconic Icelandic farmhouse will have you feeling like you’re living in a postcard. The picturesque property is situated right on the coast with private beach access. Guests stay in the one bedroom apartment on the ground floor of the home (with their own private access) while the owners of the home live on the top floor. 

Guests love the private beach access and sunset views. 

“Anna’s home is the perfect oasis for visiting Iceland. Not too far from the city but also close to nature. If the volcano is active at night you can see it from the window.” – Mary, August 2021

The Garden Cottage

Art-filled garden cottage with welcoming hosts

• Location: Hafnarfjörður
• Budget: $$$$
• Number of Guests: 4
• Minimum Stay: 2 nights
• Superhost ✔️

Curated by the owners of Reykjavík Trading Co.,The Garden Cottage is a completely renovated building dating back to 1884. The stylish 2 bedroom abode is decorated with furniture pieces handmade by the owners or picked up on their travels to Scandinavia, California and Mexico. 

Other highlights of the property include the communal garden and greenhouse, resident chickens and The Shed, which is their workshop where you can visit for a coffee, buy pieces or see their process of making objects. 

Guests rave about the property and their hosts, exclaiming that they go above and beyond to make all their guests feel welcome and comfortable. 

“Absolutely wonderful. Beautiful decor. Great hosts who are friendly and warm. Really appreciated the welcome and great conversation. The greenhouse was amazing and my son (2.5yo) loved the chickens and garden. Just a dream!” – Bhumy, August 2021

Honorable Mention:

• The Secret Cabin: A cozy 2 bedroom cabin in Hafnarfjörður

Airbnbs near the Golden Circle

As one of the most popular scenic routes in Iceland, the Golden Circle is a 186-mile (300-km) loop that combines 3 of Iceland’s most visited attractions: Þingvellir (Thingvellir) National Park, The Great Geysir and Strokkur Geysir, and Gullfoss Waterfall. Most first-time visitors to the country will have their hearts set on completing this route as part of their itinerary. 

Beautiful cottage close to Geysir

Modern eco cottage in the middle of the Golden Circle route

• Location: Laugarvatn
• Budget: $$$
• Number of guests: 4
• Minimum stay: 3 nights
• Superhost ✔️

Situated smack dab in the middle of the Golden Circle route, this unique home was built to reflect the Icelandic landscape and complement the small vegetation in the old lava-field. 

The house is kept warm year round by a uniquely sustainable method of running geothermal water through pipes in the floor. The running water comes from a natural spring and the electricity in the home is generated by geothermal activity. 

The only thing to note is that the stay does not include access to Wifi as the house is completely “off-grid”. 

“Palmi is a great host! He provided lots of thorough information about the house and getting around. It’s a unique space in a secluded neighborhood with beautiful views and all of your basic amenities. We felt very much at home during our week there and plan to return the next time we find ourselves in Iceland.” – Lauren, February 2020

Airbnbs near the Ring Road route

Ring Road is a nickname given to Route 1, Iceland’s main motorway that circles the perimeter of the island nation. Since most of the island’s interior is uninhabitable wilderness, this 825-mile (1,328 km) route connects the populated coastal areas, hitting the majority of the country’s major attractions. 

Beautiful place with great view

Modern apartment in Villa Lola with excellent views

• Location: Akureyri
• Budget: $$$$
• Number of guests: 4
• Minimum stay: 1 night

The space is the largest of 3 apartments in Villa Lola, a modern architectural home overlooking the bay and Akureyri. Just a 10-minute drive from Iceland’s second largest city and the capital of the north, you’ll have easy access to everything you need while still feeling surrounded by nature.

The modern one bedroom + loft apartment has plenty of windows and a private deck for taking in the views and the Northern Lights if you are lucky. 

Guests loved the feeling of being secluded in nature and mentioned it’s a great spot to recharge. However, there were quite a few comments in the reviews about the sandflies (very pesky little bugs that’ll bite you into misery if you aren’t careful), so it would be good to note that you’ll want to keep the windows closed and ask the host to do the same before your arrival. 

“One of the best Airbnb’s I’ve stayed in. Tastefully designed with amazing views. Check in and communication were superb.” – Ron, July 2021

Afternoon Cottages

Cottage 1, Cottage 2, Cottage 3, Cottage 4, Cottage 5, Cottage 6

Cozy off-the-beaten-path guest cottages near Hella

• Location: Hella
• Budget: $$$
• Number of Guests: 2
• Minimum Stay: 1 night
• Superhost ✔️

Surrounded by nature, you’ll have everything you need in one of these 6 guest cottages near Hella, Iceland. The cozy but spacious cottages operate like a studio apartment with a well-equipped kitchen, queen-sized bed and ensuite bathroom. 

The cottages are nicely spaced to allow for more privacy, and just a 20-minute drive from Hella where you can stock up on essentials. Book one cottage on your own, or snag all six for a larger group.  

Guests love the clean and stylish space, but warn about the dirt road entrance. Be sure you have a car that can handle rough terrain and try to arrive before dark to better navigate your way. 

“Elvar is a great host, super fast responses and very much cares about you having an amazing time. Space is stylish and beautiful, a fantastic place to stay!” – Pierce, June 2019

Honorable Mention: 

• Mountain Cottage: Budget-friendly 2 bedroom cottage in Ólafsfjörður with indoor hot tub
• Fossar Cabin: 2 bedroom A-frame cabin in Kirkjubæjarklaustur near a creek

Can’t find an Airbnb?

Here’s a quick list of recommended boutique properties, hotels and hostels in Iceland.

Recommended hostels:

• Galaxy Pod Hostel: Quirky pod-themed hostel in downtown Reykjavík 
• Héradsskólinn Guesthouse: Top-rated hostel within the famous Golden Circle
• KEX Hostel: Converted biscuit factory turned social hostel in Reykjavík

Recommended mid-range stays for couples in great locations:

• Farmhotel Efstidalur: Beautiful farmhouse turned bed and breakfast in the Golden Circle region in Laugarvatn
• INNI Boutique Apartments: Fully-serviced apartments in Hveragerði on the Golden Circle route
• Hótel Húsafell: A contemporary boutique property on a golf course in Húsafell

Recommended luxury stays with all the amenities: 

• Hotel Geysir: A family-run luxury boutique hotel at the doorstep of the famous Geysir in Haukadalur
• Canopy by Hilton Reykjavík: Modern luxury hotel in downtown Reykjavík
• The Retreat at the Blue Lagoon: A luxury all-suite hotel and the only property at the actual Blue Lagoon

Looking for a campervan?

We’ve partnered with Happy Campers to give our readers a 5% off their campervan rental when you use our coupon code: TWS5

Just enter the coupon code TWS5 at checkout on Happy Campers website. 

We also put together a HUGE Iceland campervan rental guide with tons of insider tips and advice. 

Best Airbnb Experiences in Iceland 

While we’re on the subject of Airbnbs in Iceland, we thought it would be a good idea to mention Airbnb Experiences. If you’re unfamiliar, it’s an offering by Airbnb that takes the “local experience” to a new level with experiential offerings such as craft classes, foodie tours, outdoor adventures, and cultural exchanges hosted by locals. 

Different from booking with a tour company, local hosts offer their guests a special look into their world. Sharing a passion, skill, knowledge or inside access to local places and communities that guests couldn’t find on their own. 

Here are a few unique and popular AirbnbExperiences worth checking out if you’re traveling in Iceland.

*All images from Airbnb

Perfect done-for-you Iceland itinerary

Want to skip the stress of trip planning?

Planning a trip to Iceland can feel overwhelming—there’s so much to see, and it’s easy to miss hidden gems if you don’t know where to look. That’s why we created our done-for-you Iceland Southern Coast Itinerary—so you can spend less time researching and more time soaking in Iceland’s epic landscapes.

This 7–9 day itinerary takes you along Iceland’s breathtaking Southern Coast, blending adventure with a touch of luxury. You’ll visit iconic sights like Skogafoss and Diamond Beach, plus off-the-beaten-path spots most tourists miss (like a hidden waterfall that’s one of our all-time favorites!).

With detailed daily plans, insider tips, driving directions, and hand-picked stays, this guide takes the guesswork out of planning so you can experience Iceland stress-free.

Grab your itinerary here and start planning your dream trip!

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Plan your trip to Iceland

We have TONS of resources on travel in Iceland and how to make the most out of your trip. Check out our Iceland Homepage for all the answers to your most burning questions, or read some of our favorite articles below.

• Check out all of our top recommendations for things to do in Iceland. 
• Read up on Icelandic foods so you know what to try and what to skip.
• Get a complete cost breakdown for your Iceland trip and follow our sneaky budget tips to save money!
• And don’t forget camping in Iceland is one of the best ways to save money!
• You’ll want to keep this guide handy if you plan on driving Iceland’s Golden Circle. 
• Read up on all the actually cool things to do in Reykjavik. 
• Be sure to download these essential Iceland travel apps before your trip!

Don’t miss your chance to grab our Iceland packing list!

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Are you planning a trip to Iceland sometime soon? When will you be traveling? Do you have any more questions you want answered?

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