Iceland AirBnB: 10 Most Incredible Rental Options in Iceland

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Planning a trip to Iceland is exciting. There are so many wonderful sights to see in this rich, ancient, volcanic country. From enormous volcanoes, like Eyjafjallajökull and Helka, to old Viking-style pools and grand waterfalls like Hengifoss and Fardagafoss.

Explore the landscape, and you can find magical places like rocks where fairies live, and giant boulders said to be petrified trolls. The entire country seems as if it was pulled straight from a scene of Middle Earth from Tolkien’s Lord of the Rings.

Choosing the right place to stay during your trip to Iceland is extremely important. When choosing a home to visit with AirBnB, it’s obvious that the location you pick significantly determines the quality of your entire voyage.

The quality of the person in charge of hosting you also greatly affects your stay. There are a lot of AirBnB hosts throughout the country, and as there’s no shortage of breathtaking scenery throughout Iceland, most of the homes are rated highly.

We’ve compiled a list of 10 AirBnB homes that we truly believe to be the some of the best Iceland has to offer. Each host on this list is experienced and each location is highly rated. They are all committed to providing the best service possible to their guests.

Each location offers its own distinct but equally beautiful brand of Icelandic scenery. We’ve chosen a few different options, so you can choose one that better fits your travel plan. These AirBnB homes are located in different areas around the island. Some of them are better for two guests, while others house as many as 8.

They range in price from an affordable $96/night to a more luxuriously priced $691/night. No matter you decision, choosing one of these 10 AirBnB homes will make your stay far more memorable.

Iceland AirBnB 1: This Lovely Cabin

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This “Lovely Cabin close to Blue Lagoon,” is exactly what the title states. It’s a lovely cabin close to the Blue Lagoon. A great home for families, this cabin is comfortable and cozy, yet very bright because of all the windows. This cabin is  located near Reykjavik, in Reykjanesfólkvangur nature reserve. As the title states, it’s about 35 minutes away from the Blue Lagoon. It’s only 20 minutes away from the center of Reykjavik.

Many guests boast about seeing the Northern Lights from the porch at night. It houses up to 4 guests, with one double-bed and one bunkbed. The beds are in the same room, but there is a wall acting as a divider between the two beds. It’s $218/night for two adults and two children. The living room and kitchen area is all open concept, so they’re all in one room. The house has central heating and air, and all essentials are included.

Many guests say that the cabin is always sparkling clean. Lots of DVD movies are provided. They offer free wifi as well. The tap water comes straight from Iceland’s natural springs, so it’s incredibly clean and refreshing. There are also horses passing by the property every day. Nearby is Helgafell, a local mountain and a popular spot for hikers.

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Kathrina, the owner, is an AirBnB Superhost, she only lives 10km away and will help with any planning you may need to increase the quality of your Icelandic trip. It’s location inside a nature reserve means that you’ll need a vehicle, as the nearest bus stop to the cabin is about 5km away. Check in is any time after 3pm. It’s a self-check in with a lock box. Check out is by 11am. The owner does request that no shoes be worn inside.

Iceland AirBnB 2: This Piece of Heaven

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This “Piece of Heaven,” is a cozy little cottage out in Kolsstaðir, west Iceland, 130km away from Reykjavik. It’s surrounded by a breathtaking view of Iceland’s hills and mountains sweeping into the ocean. At $232/night for two adult guests, this place is great for outdoor activities like hiking, painting, bird watching, and observing the Northern Lights. It’s not child-friendly, but this is the perfect honeymoon-getaway spot. The best time to visit is from June to January, when horses roam the entire property, adding to the scenic beauty.

The host, Kristján, is an AirBnB Superhost. He does not live in the area but is readily available online if you should need anything. He communicates directions clearly, can offer suggestions on where to buy delicious local food, and can answer any questions you have about the area. Check in is at 3pm, check out at noon.

The house is relatively newly-built and contains modern appliances but is designed in an Old Icelandic style. It has an indoor wood-burning stove that keeps the cozy house warm. It sleeps up to 4 people, with a sleeper sofa on the ground floor and an upstairs sleeping attic with two beds, one queen and one single. There’s a hot shower in the cellar.

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Nearby, about 30km away, you’ll find the Guðrúnarlaug hot spring. The natural pool/hot tub is open 24/7, free of charge. It’s a must-stop area on your trip. The owner recommends traveling to the nearby fjords for sightseeing and birdwatching. Maybe you’ll spot the occasional seal.

Iceland AirBnB 3: This Cozy Central Studio

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Dubbed the “Elves Hill Studio,” this apartment is in the city of Kopavogur. It’s located near Álfhólsvegur (Elf Hill Road), an area that local custom states is the home of invisible elves. There is a point in the road that curves around a small rocky hill. This hill is where the elves are popularly said to live. The story goes that in the 70’s, the hill was meant to be demolished to make way for the road, but every machine that went near the area began to malfunction. Accidents also started happening around the area. After that, the houses that were built around the hill were given the numbers 100 and 104, while the hill was given the address of 102. This acknowledges the residency of the elves in the hill.

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This private studio sleeps up to four guests, with one king bed and a sleeping sofa, but is probably best suited to couples. It currently costs $96/night for two adult guests, so it’s the most affordable on our list. It has a terrific hot tub outside. The host, Siggi, is an AirBnB Superhost. She lives right next door and says that she can assist you to make your stay more enjoyable. This means that a late-night check in is no problem. They’re only 7km away from downtown Reykjavik, which is only 15 minutes on the bus. They offer free wifi, complimentary bathrobes and slippers, and a washing machine in the bathroom if needed. The kitchen is fully equipped with anything you may need during your stay. Books about Iceland are available in the apartment. There’s a friendly neighborhood cat that comes and goes, who is allowed inside the house.

Iceland AirBnB 4: This Luxury Villa

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This comfortable country villa is listed as,” MARIA Luxury Villa South-west.” It has four bedrooms and sleeps up to eight guests, so it’s very comfortable for a family or a large group. There are a total of three queen beds, two single beds, and a sofa bed. Eights guests will cost you $691/night, but the price is well worth it. This house is gorgeously built with a mix of natural wood and natural stone walls, and its view is astounding.

There is a top-notch jacuzzi, an elegant sauna room with glass doors for viewing the scenic Icelandic countryside, a fully equipped modern kitchen with microwave and dishwasher, two nice flat screen TVs, blue ray player, an outdoor barbecue, and free wifi. Extra-large windows, reaching from floor to ceiling, means that the villa is bright and cheerful. There’s a children’s private playground in the yard. You can watch the Northern Lights while relaxing in your heated Jacuzzi.

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The hosts, Gestur and Anna Maria, are AirBnB Superhosts, and are more than willing to assist in making your stay more enjoyable by making special arrangements or giving sightseeing and travel tips. Check in is any time after 3pm. Check out time is 11am.

Located in Vesturland, on a hill in the southwestern side of Svinadalur, the villa is roughly 40 minutes from the center of Reykjavik. This spot is the perfect middle ground for an exploration trip of Southern Iceland. It’s only an 8-minute drive to a natural heated pool at Hladir, in the beautiful Hvalfjordur. Nearby attractions include the road that skirts the shore of the Hvalfjordur and Glymur- the highest waterfall in Iceland.

Iceland AirBnB 5: This Cottage with a View

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This “cottage with a view,” is located on a small, family-run farm property 12km away from Egilsstaðir, an East Iceland town. This cabin is cozy (read: small). In fact, it’s all one room. But don’t let its small stature deter you, it’s not the size of the house that matters. This place is perfect for two-to-three adults or a family of two adults and a child. There’s a queen bed and an expandable sofa bed, a small kitchen, and a shower. This cabin is fully insulated with a heating system and offers basic essentials like towels and bedsheets, toilet paper, and free wifi. Check in time is 5pm to 10pm. Check out time is by 11am.

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For two adults and one child, it’s $131/night. The owners, Einar And Melanie, are AirBnB Superhosts. They breed horses and always have them roaming around the property. During the summer, they offer short horseback riding sessions for children for an extra charge. The birds, the horses, and the mountains make for a beautiful scenic view, which can be enjoyed from the cottage’s small porch.

The surrounding area is great for hiking, painting, sightseeing, and enjoying nature. Day tours are available nearby to view the famous waterfall, Hengifoss. There’s also the waterfall Fardagafoss, in the opposite direction. The nearby fjords of East Iceland are beautiful, they offer scenic views of the water with birdwatching and seal-spotting opportunities. The nearby Kárahnjúkar hydroelectric dam is fun to explore as well.

Iceland AirBnB 6: This Beautiful Cottage

This “Beautiful Cottage Close to Geysir,” was built in 2010, according to the owner, to “reflect the Icelandic landscape and complement the small vegetation of moss and trees in the old lava-field.” This gorgeous summer house will hold up to 6 guests. It was built to be a very green and sustainable house, with pipes of natural hot spring water lining the floor to keep the house warm.

All the cold water is natural spring water pumped from a nearby well. All the hot water comes from a local natural geothermal hot spring. There are two bedrooms with a queen bed in each. There’s also a small bedroom perfect for a child. For three guests, this AirBnB will cost you $250/night.

The host, Palmi, is an AirBnB Superhost. He doesn’t live in the area, but he will take any call, text, or email and will work hard to make your stay more enjoyable. You’ll need to have cell phone access to call them in advance when you arrive, so they can let you into the community.

Without a cell phone and the owners’ approval, you won’t be able to get access inside. The house has a full kitchen with working stove, oven, and dishwasher, as well as a washer and dryer. There’s a small playground for children in the back yard. After mid-August, wild blueberries will be growing all around the property and are freely available for picking.

Laugarvatn, the closest town, is a 15-minute drive away. The nearest attraction is Geysir, only 10 minutes away. Geysir is a famous geyser that erupts every few minutes, shooting water up to 70 meters into the air. Gulfoss is 25 minutes away. Gulfoss is a stunning waterfall, usually sporting a rainbow, that drops water 32 meters into a canyon.

Iceland AirBnB 7: This Luxury Holiday House

This “Luxury holiday house w/ great view,” sleeps up to four guests. With two decently-sized bedrooms, one with a queen bed and one with two single beds. This is a great place to relax, unwind, and enjoy the beautiful Icelandic landscape. The inside is expertly decorated and kept sparkling clean.

The hosts, Sigurrós And Skúli, are AirBnB Superhosts, and can offer lots of information about local history or interesting day tours of south Iceland, the Golden Circle, black beaches, and the Blue Lagoon. The house has heated floors and large windows. It has a very modern feel. A perfect area for viewing the Northern Lights when the time is right.

The house is near the Golden Circle and Thingvellir National Park and is conveniently located about 15 minutes away from Selfoss, a town on the bank of the Ölfusá river. There’s a geothermal river nearby that feels great to relax in after the required hike. It’s a gorgeous house surrounded by peaceful land, with spectacular views of Eyjafjallajökull and Helka, two of Iceland’s famous volcanoes. There is a nice patio where you can sit and enjoy the view. There are also fun free-range chickens roaming the scenic farmland, which provide delicious fresh eggs.

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Four guests will cost you $315 per night. The house has heated floors. They offer free wifi, as well as essentials like towels, bed sheets, toilet paper, and soap. As a nice added touch, they have a nice collection of CDs for you to enjoy during your stay.

Iceland AirBnB 8: This Hálsaból Summer House

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This Hálsaból Sumarhús is one part of a pair of cabins that are located in the middle of the Snæfellsnes peninsula, near the town of Grundarfjörður. The house holds up to 8 people, but with only two bedrooms. There is a bunk bed in each room, with a double bed as a bottom bunk and a single top bunk. Up to three people can therefore sleep in each room.

There is also an extendable sleeping sofa in the living room. There’s a nice hot tub on the front porch to relax in and a playground out in the yard to occupy your children. This summer house is great for families. Two adults and two kids will cost you around $192/night. Free wifi is included, as are basic amenities, heating, AC, and a tv.

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The house is surrounded by beautiful scenery. It’s a great spot to view the Northern lights from the porch. The Snæfellsnes peninsula is a wonderful spot to explore, with a glacier, beaches, cliffs, waterfalls, and lava beds. There are many wonderful places to see in the area. Mount Kirkjufell can be seen nearby and is a great place to hike and take some photos.

Hjörtur, the owner, is an AirBnB Superhost, and asks that you inform him of anything you might need to increase the quality of your stay. The house is heated and well insulated with working AC. Check in is any time after 4pm. It’s self-check in with a lock box. Check out is at noon.

Iceland AirBnB 9: This Old Farmhouse

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This “Old Farmhouse by Eyjafjallajökull,” is located in Hvolsvollur, a small southern Iceland town. Built in 1939 and reconstructed in 2007, this typical Old Icelandic style farmhouse is small and cozy. It sleeps up to six guests. The upstairs loft, accessed by a ladder, has two bedrooms. Each bedroom contains two single beds.

The ground floor has a bedroom with a double bed. There is a kitchen with modern amenities, a living room with a tv, a dining area, and a wash room with a shower and a washing machine. There’s an iron, a dishwasher, and a coffee maker.

The host, Tómas, is an AirBnB Superhost, and you can give him or his wife a call for anything you need or any questions you may have. Self-check in with the lock box is any time after 4pm. Check out is by noon. For six adult guests, the stay is around $207/night.

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The house is located in the area of Eyjafjöll, south of the Eyjafjallajökull glacier. Seljavallalaug, one of the oldest natural outdoor swimming pools in Iceland, is located nearby. It’s only a 15-minute drive. The village of Vik is about 40 minutes away. It takes about 30 minutes to drive to the black sand beach and the basalt rock columns at Reynisfjara, Reynisdrangar and Dyrhólaey.

Iceland AirBnB 10: This Comfort in the Fjord

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This romantic house, Sæberg, is a newly renovated building that used to be an old schoolhouse but has been recently updated with a modern design. This bright and beautiful building is nestled gently between the mountains, surrounded by green valleys and the ocean. It lies in the fjord of Seyðisfjörður. The beautiful view of the mountains and the water makes for a perfect honeymoon getaway.

The house is a sparkling clean building with free wifi, a wonderful indoor wood fireplace, and a fully equipped kitchen. There’s even a small piano for entertainment. Everything is wonderfully decorated and designed. There are two beds upstairs, accessed through the spiral staricase, and the house holds a maximum of four guests. The building, with its eye-catching bright red roof, is 7km away from the town center.

Benedikta, the host and owner, is an AirBnB Superhost and is committed to making sure your stay is top-notch. It costs $151/night for two adult guests. Check in is any time after 3pm. Check out is at noon. Gufufoss, a popular waterfall, is only a four-minute drive away from Seyðisfjörður. There are lots of hiking areas around. The house is right on the water, so there’s plenty of opportunity for fishing. Sheep and lamb sometimes wander the area and can be fun to watch.

Happy Visiting!

And there you have it, 10 of the best AirBnB options that Iceland has to offer. Each location offers something a little different, a distinctly beautiful experience, but we believe they’re all worth the price of your stay. Heck, why not try more than one of them?

Staying at a couple different homes will truly give you a more rounded Icelandic Journey. Whether you choose the grand Luxury Vesturland Villa or the small but cozy Kopavogur apartment, your AirBnB stay is sure to be unforgettable experience. Enjoy your stay in the magical country of Iceland. Happy Exploring!

Looking for a more hotel-based option? Check out our information hub on Icelandair Hotels, or our review of Fosshotel options.

Instead looking to rent a camper van and rough it? We have plenty of Iceland camper van tips as well!

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