The Land of Ice and Fire has become one of the world’s top tourist destinations in recent years, and it’s no surprise! Iceland is totally beautiful, with natural wonders aplenty. You can truly see why Game of Thrones and a number of other big series and films have used it as a base for filming.
One of the best spots in the world to see the Northern Lights, you can also see awe-inspiring waterfalls and geysers, ride tiny Icelandic horses across stunning landscapes, or take Super-jeep tours right out into the wilderness!
Unfortunately, there is one little downside to Iceland: the price. It can be frightfully expensive and this will be a red flag to some backpackers – especially if they’re broke! However, that needn’t be the case.
There are some awesome rentals in Iceland that can save you money over staying in the country’s hotels. And what a lot of choices there are! From cottages where you can hunt the Northern Lights, to private rooms in farmhouses, to sweet pads in Reykjavik and Akureyri, Iceland has it all!
In this post, we’ll take a look at the best Airbnbs in Iceland. Not only will it help you plan your trip, but also save you a bit of cash too!
Quick Answer: These are the Top 5 Airbnbs in Iceland
Awesome views in downtown Reykjavik
- > $$
- > 4 Guests
- > High speed Wi-Fi
- > Basic toiletries provided
Restored home in heart of Reykjavik
- > $$
- > 2 Guests
- > Fully equipped kitchen
- > Comfy and charming
Nonnstein: Life in the Countryside
- > $$
- > 2 Guests
- > Queen sized bed
- > Near to numerous natural wonders
Nature cabin near Blue Lagoon
- > $$$$
- > 4 Guests
- > Free parking
- > Indoor Fireplace
Modern Apartment in the Countryside
- > $$$$
- > 4 Guests
- > Near Akureyri
- > Incredible views
Why stay in an Airbnb?
- Local Experience: No matter how big your guidebook is, it won’t have the superb local know-how can get from your hosts. Be sure to get their recommendations on things to do!
- Unique properties: Airbnb has every kind of property you could think of. There’s even a ‘unique stays’ search function, where you can find your dream property on the site.
- Affordability: You can spend less than $100 a night on an Airbnb and get all the facilities you’d expect in a five-star hotel and more. Airbnb makes it easier to spend your holiday money wisely!
- Safety: It might seem a little weird staying in someone’s house; however, both hosts and guests are vetted by Airbnb reviews to ensure the safety of both. Iceland is overall safe, and the Airbnb booking security just adds a little extra to it.
- Airbnb Experiences: Choosing Airbnb isn’t just about where to stay – it’s about enjoying the area like a local with curated tours, too!
Custom-designed BY the Broke Backpacker FOR broke backpacking, the Active Roots Security Belt will keep your valuables safe no matter where you go.
It looks exactly like a normal belt except for a SECRET interior pocket perfectly designed to hide a wad of cash or a passport copy. Never get caught with your pants down again! (Unless you want to.)Check on Amazon
The Top 15 Airbnbs in Iceland
Overall Best Value Airbnb in Iceland | Awesome views in downtown Reykjavik
Let’s kick off with one of the best all-round Airbnbs in Iceland. Located in the capital city, Reykjavik, it’s an ideal base for your Icelandic adventures! And you can use that free high-speed Wi-Fi to plan them out! Of course, you probably won’t want to as you’ll be admiring the views of downtown and the sea – especially during sunset.
In terms of convenience, this place is just a ten-minute walk from the main shopping street of Reykjavik, where you’ll find some great places to eat and drink too. Don’t fancy that? Use the fully equipped kitchen to prepare something delicious!
Best Budget Airbnb in Iceland | Fossatún Camping Pods
What’s that you say? Camping? Surely that’s not on Airbnb? Well it is, and it’s not just any kind of camping! As we have already said, Iceland can be incredibly expensive but you can find places well within your budget – especially if you get creative! And you’re not staying in a tent here – Fossatún Camping Pods are nice and warm as they have electrical radiators, and they’ve also got modcons like sockets so you can charge your phone and get that shot of the Northern Lights for your Instagram!
Oh, we almost forgot to mention that there’s a hot tub too!
Budget Tip: Dorms in Iceland start from $30USD per bed. They’re the cheapest accommodation in the city. Search for hostels in the area!
Perfect Short Term Rental for Digital Nomads | Lovely room in panoramic art house
As long as accommodation has a laptop-friendly workspace and wi-fi, digital nomads can work anywhere. So, why stay in the city when you can be somewhere like this? Just imagine how inspiring it’d be to work in front of those glacier views or on the outdoor terrace! This artist’s house is just a hop, skip, and a jump from the town of Borgarnes, where you’ll find an outdoor thermal swimming pool.
So, if the isolation does get too much you’ve at least got some escape from it! This beautiful house has been featured in design magazines and documentaries on more than one occasion. Yep, it’s that beautiful!
Perfect Airbnb for Solo Travellers | Cosy Loft Room in Central Park
If you’re travelling solo, most people will tell you a hostel is a good idea, but we know that’s not the case for everyone. We’d still recommend staying in one of Iceland’s cities though. And the capital Reykjavik is a great base as it has tours, nightlife, and lots of things to do. This private room is located in the Laugardalur, and one of the key attractions there is the largest geothermal swimming pool in the country!
In the apartment itself, you can make use of its fully equipped kitchen, or try and catch a view of the Northern Lights from the back porch!
Best Airbnb in Iceland for Nightlife | Beautiful Northern Lights Cottage
Reykjavik may have a decent bar and club scene, but the nightlife that people come to Iceland for isn’t music and drinking. It’s the incredible Northern Lights. So, let’s check out one of the best Airbnbs in Iceland for viewing the Aurora Borealis! This beautiful cottage is about an hour from Reykjavik and Selfoss is the nearest city.
The bonus? There’s almost no light pollution. Although you can never guarantee Northern Lights sightings, you’ve got a pretty great chance of seeing them from the tranquil balcony here!
Best Short Term Rental for Couples | Nonnstein: Life in the Countryside
Nonnstein’s listing says it’s perfect for newlyweds and couples, so who are we to argue?! If you want a peaceful escape from the hustle and bustle of life, there’s nowhere better. It’s not just this Iceland Airbnb that’s so great, but what’s around it. Take advantage of whale watching, black beaches, waterfalls, and lava fields! Once you’ve spent the day exploring the area’s natural wonders, head back to the comfy queen-sized bed or take a seat to enjoy the landscape and maybe even the Northern Lights!
Best Homestay in Iceland | Restored home in heart of Reykjavik
If you want to stay save money and have an authentic experience, then there’s no better idea than staying with a local. Here’s one of the best homestays in Iceland, right in the heart of Reykjavik! The home has over 100 years of history but has been restored to give you the ultimate cosy and comfortable experience. It’s in a great location, with many of the capital’s top attractions on your doorstep. If that’s not enough, you’ve also got used of the kitchen!
Runner Up Homestay in Iceland | Owl Room at Spirit Farmhouse
There are so many great homestays in Iceland that we couldn’t just show you one. The Spirit Farm may not be in the centre of Reykjavik, but this is really just an excuse to get out and enjoy the awesome countryside! On a clear day, you have views of two of Iceland’s most famous volcanoes, Hekla and Eyjafjallajökull. You’ll just have to hope they don’t erupt or this Iceland homestay might become your accommodation for much longer than you originally intended!
Amazing Luxury Airbnb in Iceland | Modern Apartment in the Countryside
If you don’t mind splashing the cash on holiday, check out this phenomenal luxurious Iceland Airbnb. There’s nowhere better if you want to escape and disconnect from the stress of daily life! Just a hop, skip, and a jump from Akureyri, this minimalist apartment blends into the landscape and offers incredible panoramic views of the surrounding landscape and distant mountains. I mean, could you imagine anywhere better to enjoy a meal than that table on the decking outside?!
Over the Top Luxury Airbnb in Iceland | Luxury Villa in Northern Iceland
There are plenty of luxury Airbnbs in Iceland, so it can be hard to know the right one to choose. However, the daddy of them all is this luxurious villa in Northern Iceland – another one that’s close to Akureyri. As well as the peace and tranquility, you’ve got an incredible terrace and hot tub so you can stay warm as you search the skies for the Northern Lights!
Inside, there’s heating, a DVD player, and a washing machine and dryer. Useful if you’ve been out in nature and got snowy or dirty! There’s also a Jeep Cherokee for rent, if you’re looking for an easier way to get around!
Best Airbnb in Iceland for Families | Nature cabin near Blue Lagoon
Travelling with the family? Why not pick an Iceland Airbnb that everyone will remember? This nature cabin can hold up to 4 guests and it’s close to one of the top attractions in the country – the Blue Lagoon! It’s suitable for all ages, and the living room with its’ rocking chair is a perfect place to spend the evening playing cards or board games and spending quality time together!
Best Airbnb in Iceland for a Group of Friends | Icelandic Country Suite on farm
When travelling with friends, you’ll probably want something cool and exciting to do after a day of exploring the island. This Airbnb in Iceland certainly ticks those boxes, as it has a snooker table, a jukebox, and even a bar! Don’t worry about being cold here – as well as those comfy beds with plenty of covers, every room boasts an environmentally friendly geothermal radiator! Breakfast isn’t included, but pick up some stuff at a store as you’ve plenty of facilities to cook, including an outdoor grill!
Best Airbnb in Reykjavik | Great Downtown Reykjavik Apartment
We know we’ve already shown you a few places to stay in Reykjavik, but that’s because it’s home to some of the best Airbnbs in Iceland! So, we’ve got a couple more for you. This comfortable downtown apartment offers a super king bed and a sofa bed, so it’s suitable for couples, business travellers, or perhaps even a small group of friends or family. If you’re looking for somewhere to stay for a long time, this place offers long-term stays. So you can wake up in Central Reykjavik as long as necessary!
Another Great Apartment in Reykjavik | Scandi Chic Downtown Apartment
Okay, we promise this is the last Reykjavik Airbnb we’re going to show you! But aren’t you glad we did? This studio can sleep two guests, so it’s perfect if you’re travelling solo or with your other half. It’s just 5 minutes away from Reykjavik’s bus station – so ideal for exploring the city and making your onward journeys around the island’s ring road! No matter what time you arrive, you don’t have to worry about not getting into your apartment. There’s 24-hour self-check-in!
Top Value Airbnb in Akureyri | Studio by the sea with hot tub
Last but not least on our list of the best Airbnbs in Iceland is this awesome apartment in Akureyri. We’ve shown you a few places nearby, but nothing in this pretty little town until now. This studio by the sea not only offers fabulous views, but you also get used of a hot tub and access to a fully equipped kitchen too. If you’re planning a tour around Route One, this is definitely the place to stay in Akureyri!
What to Pack for your Iceland Airbnb
Pants, socks, underwear, soap?! Take it from us, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art we have perfected over many years.
Check out our definitive Airbnb Packing list for our top packing tips!
FAQ about Airbnbs in Iceland
Here’s what people usually ask us when they look for vacation homes in Iceland.
Final Thoughts on Iceland Airbnbs
So, that concludes our list of the best Airbnbs in Iceland. Hopefully, you’ll have found something suitable for your travel style, budget, and personality. After all, we’ve included something in our extensive list for absolutely everybody!
Whether you want a downtown apartment to explore the capital Reykjavik, a friendly stay on a local farm, or an isolated apartment out in the gorgeous Icelandic countryside, this country really does have it all. In fact, we might have given you a little too much to pick from!
If so, sorry about that! But it can still be an easy decision. Go for the best all-rounder – our favourite Airbnb in Iceland – Awesome views in Downtown Reykjavik. It’s right in the capital, so it’s easy to get anywhere on the island. It also offers great value for money and it’s pretty cool and stylish too.
So, now that we’ve helped you plan your trip to Iceland, all that’s left is for us to wish you an incredible vacation. We hope you have a great time!
And don’t forget to take out Travel Insurance for your trip! I have been using World Nomads for some time now and made a few claims over the years. They’re easy to use, professional and relatively affordable. They may also let you buy or extend a policy once you’ve started your trip and are already abroad which is super handy.
If there’s one insurance company I trust, it’s World Nomads. To find out why I use World Nomads, check out my World Nomads Insurance review.
Getting an estimate from World Nomads is simple – just click the button or image below, fill out the necessary info, and you’re on your way!
Find out how YOU can support the site.
We work hard to put out the best backpacker resources on the web for free! It’s all about helping out our tribe of awesome backpacker readers (that’s you!). Please visit the link to find out how you can help keep the site going 🙂
For the sake of transparency, some of the links in our content are affiliate links. This means that if you book your accommodation, buy a piece of gear, or sort your insurance through our link, we earn a small commission at no extra cost to you. We only link to stuff that members of the Broke Backpacker team has actually used and never endorse products or services that are not up to scratch. Thanks for your support!