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!

A woman looks out down a massive cliffside where a rainbow can be seen in Iceland
Photo: Ankita Kumar

Quick Answer: These are the Top 5 Airbnbs in Iceland

Awesome views in downtown Reykjavik, Iceland

Awesome views in downtown Reykjavik

  • > $$
  • > 4 Guests
  • > High speed Wi-Fi
  • > Basic toiletries provided
Fossatún Camping Pods, Iceland

Fossatún Camping Pods

  • > $
  • > 2 Guests
  • > Hot Tub
  • > Free Parking
Luxury Villa in Northern Iceland, Iceland

Luxury Villa in Northern Iceland

  • > $$$$$
  • > 5 Guests
  • > Hot Tub
  • > Jeep rental available
Cosy Loft Room in Central Park, Iceland

Cosy Loft Room in Central Park

  • > $
  • > 2 Guests
  • > Fully equipped kitchen
  • > Garden and back porch
Lovely room in panoramic art house, Iceland

Lovely room in panoramic art house

  • > $$
  • > 2 Guests
  • > Laptop friendly workspace
  • > Outdoor terrace with glacier views

We love a good deal!

We’ve included links to as well throughout this post — as we have found many of the same properties available on Booking and they are usually at a cheaper price! We’ve included both button options where we can to give you the choice of where you book 🙂

The Top 15 Airbnbs in Iceland

Awesome views in downtown Reykjavik | Overall Best Value Airbnb in Iceland

Awesome views in downtown Reykjavik, Iceland

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!

Fossatún Camping Pods | Best Budget Airbnb in Iceland

Fossatún Camping Pods, Iceland

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!

Is This the Best Backpack EVER???
audy on top of a mountain in japan with the osprey aether

We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

View on Osprey View on REI

Luxury Villa in Northern Iceland | Over the Top Luxury Airbnb in Iceland

Luxury Villa in Northern Iceland, 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!

Cosy Loft Room in Central Park | Perfect Iceland Airbnb for Solo Travellers

Cosy Loft Room in Central Park, Iceland

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!

Lovely room in panoramic art house | Perfect Short Term Airbnb in Iceland for Digital Nomads

Lovely room in panoramic art house, Iceland

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!

Travel with peace of mind. Travel WITH a security belt.
Active Roots Security Belt

Stash your cash safely with this money belt. It will keep your valuables safely concealed, 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, a passport photocopy or anything else you may wish to hide. Never get caught with your pants down again! (Unless you want to…)

Hide Yo’ Money!

More Epic Airbnbs in Iceland

Here are a few more of my favorite Airbnbs in Iceland!

Beautiful Northern Lights Cottage | Best Airbnb in Iceland for Nightlife

Beautiful Northern Lights Cottage, Iceland

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!

Nonnstein: Life in the Countryside | Best Short Term Rental for Couples

Nonnstein: Life in the Countryside, Iceland

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!

Restored home in heart of Reykjavik | Best Homestay in Iceland

Restored home in heart of Reykjavik, Iceland

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!

Owl Room at Spirit Farmhouse | Runner Up Homestay in Iceland

Owl Room at Spirit Farmhouse, Iceland

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!

Modern Apartment in the Countryside | Amazing Luxury Airbnb in Iceland

Modern Apartment in the Countryside, Iceland

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?!

Nature cabin near Blue Lagoon | Best Airbnb in Iceland for Families

Nature cabin near Blue Lagoon, Iceland

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!

Icelandic Country Suite on farm | Best Airbnb in Iceland for a Group of Friends

Icelandic Country Suite on farm, Iceland

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!

Great Downtown Reykjavik Apartment | Best Airbnb in Reykjavik

Great Downtown Reykjavik Apartment, Iceland

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!

Scandi Chic Downtown Apartment | Another Great Apartment in Reykjavik

Scandi Chic Downtown Apartment, Iceland

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!

Studio by the sea with hot tub | Top Value Airbnb in Akureyri

Studio by the sea with hot tub, Iceland

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!

FAQ about Airbnbs in Iceland

Here’s what people usually ask us when they look for vacation homes in Iceland.

What To Pack For Iceland

Pants, socks, underwear, soap?! Take it from me, packing for an Airbnb stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.

Don’t Let Snorers Keep You Awake!
Don’t Let Snorers Keep You Awake!

Ear Plugs

Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.

Keep your laundry organized and stink free
Keep your laundry organized and stink free

Hanging Laundry Bag

Trust us, this is an absolute game changer. Super compact, a hanging mesh laundry bag stops your dirty clothes from stinking, you don’t know how much you need one of these… so just get it, thank us later.

Stay Dry With a Micro Towel
Stay Dry With a Micro Towel

Sea To Summit Micro Towel

Hostel towels are scummy and take forever to dry. Microfibre towels dry quickly, are compact, lightweight, and can be used as a blanket or yoga mat if need be.

Make Some New Buddies…
Make Some New Buddies…

Monopoly Deal

Forget about Poker! Monopoly Deal is the single best travel card game that we have ever played. Works with 2-5 players and guarantees happy days.

Reduce Plastic – Bring a Water Bottle!
Reduce Plastic – Bring a Water Bottle!

Grayl Geopress Water Bottle

Always travel with a water bottle! They save you money and reduce your plastic footprint on our planet. The Grayl Geopress acts as a purifier AND temperature regulator. Boom!

Don’t Forget Your Iceland Travel Insurance

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

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!

Looking for more info on visiting Iceland?

And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!