Reykjavík Airbnb Market Analysis 2026: Short Term Rental Data & Vacation Rental Statistics in Reykjavíkurborg, Iceland
Is Airbnb profitable in Reykjavík in 2026? Explore comprehensive Airbnb analytics for Reykjavík, Reykjavíkurborg, Iceland to uncover income potential. This 2026 STR market report for Reykjavík, based on AirROI data from January 2025 to December 2025, reveals key trends in the niche market of 92 active listings.
Whether you're considering an Airbnb investment in Reykjavík, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Reykjavík Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Reykjavík Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Reykjavík (2026)
Understanding the monthly revenue variations for Airbnb listings in Reykjavík is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Reykjavík is typically August, while May often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Reykjavík across different performance tiers:
- Best-in-class properties (Top 10%) achieve $9,148+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $5,988 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $3,662 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $2,030, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Reykjavík
Reykjavík Airbnb Occupancy Rate Trends (2026)
Maximize your bookings by understanding the Reykjavík STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees the highest demand (peak season occupancy), while May experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Reykjavík:
- Best-in-class properties (Top 10%) achieve 79%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 70% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 55%.
- Entry-level properties (Bottom 25%) average 35% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Reykjavík
Average Daily Rate (ADR) Airbnb Trends in Reykjavík (2026)
Effective short term rental pricing strategy in Reykjavík involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Reykjavík typically peaks in August and dips lowest during November. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $491+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $321 or more.
- Typical properties (Median) charge around $229 per night.
- Entry-level properties (Bottom 25%) earn around $151 per night.
Average Daily Rate (ADR) Trend by Month in Reykjavík
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Airbnb Seasonality Analysis & Trends in Reykjavík (2025)
Peak Season (August, June, July)
- Revenue averages $6,049 per month
- Occupancy rates average 65.8%
- Daily rates average $278
Shoulder Season
- Revenue averages $3,176 per month
- Occupancy maintains around 36.1%
- Daily rates hold near $258
Low Season (February, March, April)
- Revenue drops to average $0 per month
- Occupancy decreases to average 0.0%
- Daily rates adjust to average $272
Seasonality Insights for Reykjavík
- The Airbnb seasonality in Reykjavík shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Reykjavík's highest earning potential, with monthly revenues capable of climbing to $7,055, occupancy reaching a high of 74.8%, and ADRs peaking at $289.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $0, occupancy could drop to 0.0%, and ADRs may adjust down to $246.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Reykjavík.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Reykjavík seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Reykjavík (2026)
Exploring the top neighborhoods for short-term rentals in Reykjavík? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Downtown Reykjavík | The vibrant heart of the city, offering a mix of culture, dining, and nightlife. It's the ideal location for travelers who want to experience the best of Reykjavík's urban life. | Harpa Concert Hall, Sun Voyager, Hallgrímskirkja, Laugavegur Street, Reykjavík City Museum |
| Reykjavík Old Harbour | A charming area with stunning views of the waterfront and Mount Esja. It attracts tourists for whale watching tours and offers a variety of cozy cafes and restaurants. | Whale Watching Tours, Reykjavík Maritime Museum, Harbour Walk, Víkin - Maritime Museum, Fish Market |
| Kopavogur | A nearby suburb with modern amenities and close proximity to Reykjavík's attractions. It's ideal for families and those looking for a quieter environment with easy access to the city. | Kopavogur Sculpture Park, Smáralind Shopping Mall, Kopavogur Church, Reykjavík Golf Club, Lake Ellidavatn |
| Laugardalur | Known for its green spaces and recreational facilities, Laugardalur is perfect for travelers who enjoy outdoor activities. The area has botanical gardens and geothermal pools. | Laugardalslaug Swimming Pool, Reykjavik Park and Zoo, Botanical Gardens, Laugardalur Valley, Elliðaárdalur Valley |
| Seltjarnarnes | A quiet residential area with beautiful coastal views, Seltjarnarnes is perfect for travelers looking for a peaceful retreat while still being close to Reykjavík. | Grotta Lighthouse, Beach Walks, Seltjarnarnes Nature Reserve, Býjabergsvegur Birdwatching, Historical Seltjarnarnes |
| Þingholt | A trendy neighborhood known for its vibrant arts scene and unique architecture, attracting young travelers and those interested in Reykjavík’s cultural life. | Laugavegur Street, Art Galleries, Street Art, Cafés and Bars, Reykjavik Art Museum |
| Grandi | An up-and-coming area with an artistic vibe, known for galleries and design shops. This area appeals to younger travelers and those looking for a unique cultural experience. | Reykjavík Design Museum, Dýrafjörður's Maritime Museum, Cafés, Craft Beer Shops, Street Markets |
| Vesturbær | This residential area offers a mix of local culture and proximity to the city center. It's ideal for families and those who appreciate a serene environment close to urban amenities. | Vesturbæjarlaug Pool, Reykjavík Art Museum - Ásmundarsafn, Local Cafés, Walking Trails, Cultural Events |
Understanding Airbnb License Requirements & STR Laws in Reykjavík (2026)
While Reykjavík, Reykjavíkurborg, Iceland currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Reykjavík to ensure full compliance before hosting.
(Source: AirROI data, 2026, based on 9% licensed listings)
Top Performing Airbnb Properties in Reykjavík (2026)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Reykjavíkbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
5BR | 3Bath | Luxurious Mid Central 2 Free parking
Entire Place • 5 bedrooms
3BR | 2Bath|Luxurious Mid Central -1 Free parking
Entire Place • 3 bedrooms
Beautiful Vintage Apartment - Skolavordustigur
Entire Place • 4 bedrooms
3BR | Spacious Luxurious Mid Central- Free parking
Entire Place • 3 bedrooms
Amazing Downtown Villa
Entire Place • 3 bedrooms
Luxury Central Apartment
Entire Place • 2 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Reykjavík (2026)
Learn from the best! This table showcases top-performing Airbnb hosts in Reykjavík based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Axel | 4 | $541,512 | 201 | 4.95/5.0 |
| Óðinn | 3 | $172,826 | 22 | 4.50/5.0 |
| Greenkey | 3 | $152,109 | 40 | 4.61/5.0 |
| Reykjavík Apartments | 2 | $124,918 | 57 | 4.66/5.0 |
| Karen Aileen | 8 | $114,772 | 65 | 4.65/5.0 |
| Thora | 1 | $97,402 | 7 | 5.00/5.0 |
| U | 1 | $68,356 | 5 | 5.00/5.0 |
| Hildur | 3 | $57,473 | 5 | Not Rated |
| Isleiga | 2 | $53,289 | 31 | 4.66/5.0 |
| Haukur | 1 | $52,925 | 5 | 5.00/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Reykjavík.
Dive Deeper: Advanced Reykjavík STR Market Data (2026)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Reykjavík. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsReykjavík Short-Term Rental Market Composition (2026): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Reykjavík
- The Reykjavík Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 73.9% of the 92 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Reykjavík, Apartment/Condo properties are the most common (70.7%), reflecting the local real estate landscape.
- Houses represent a significant 28.3% portion, catering likely to families or larger groups.
- Smaller segments like hotel/boutique (combined 1.1%) offer potential for unique stay experiences.
Reykjavík Airbnb Room Capacity Analysis (2026): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Reykjavík
- The dominant room capacity in Reykjavík is 1 bedroom listings, making up 32.6% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 51.1% of the active Airbnb listings in Reykjavík, indicating a high concentration in these sizes.
- A significant 25.0% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Reykjavík.
Reykjavík Vacation Rental Guest Capacity Trends (2026)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Reykjavík
- The most common guest capacity trend in Reykjavík vacation rentals is listings accommodating 4 guests (23.9%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 2 guests dominate the Reykjavík STR market, accounting for 35.9% of listings.
- 24.0% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Reykjavík.
- On average, properties in Reykjavík are equipped to host 3.5 guests.
Reykjavík Airbnb Booking Patterns (2026): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Reykjavík
- The most common availability pattern in Reykjavík falls within the 181-270 days range, representing 46.7% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 92.4% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Reykjavík (52.2%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 7.6% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Reykjavík Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
30 listings
32.6% of total
2 Nights
7 listings
7.6% of total
3 Nights
8 listings
8.7% of total
4-6 Nights
7 listings
7.6% of total
7-29 Nights
2 listings
2.2% of total
30+ Nights
38 listings
41.3% of total
Key Insights
- The most prevalent minimum stay requirement in Reykjavík is 30+ Nights, adopted by 41.3% of listings. This highlights the market's preference for longer commitments.
- A significant segment (41.3%) caters to monthly stays (30+ nights) in Reykjavík, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 30+ Nights minimum stay, as 41.3% of Reykjavík hosts use this setting.
- Explore offering discounts for stays of 30+ nights to attract the 41.3% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Reykjavík.
Reykjavík Airbnb Cancellation Policy Trends Analysis (2026)
Flexible
23 listings
25% of total
Moderate
37 listings
40.2% of total
Firm
32 listings
34.8% of total
Cancellation Policy Insights for Reykjavík
- The prevailing Airbnb cancellation policy trend in Reykjavík is Moderate, used by 40.2% of listings.
- There's a relatively balanced mix between guest-friendly (65.2%) and stricter (34.8%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 40.2% market standard in Reykjavík.
- Regularly review your cancellation policy against competitors and market demand shifts in Reykjavík.
Reykjavík STR Booking Lead Time Analysis (2026)
Average Booking Lead Time by Month
Booking Lead Time Insights for Reykjavík
- The overall average booking lead time for vacation rentals in Reykjavík is 38 days.
- Guests book furthest in advance for stays during November (average 55 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in April (average 0 days), indicating more last-minute travel plans during this time.
- Seasonally, Fall (51 days avg.) sees the longest lead times, while Spring (1 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (38 days) as a baseline for your pricing and availability strategy in Reykjavík.
- For November stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 55 days out to capitalize on advance planning.
- During April, focus on last-minute booking availability and promotions, as guests book with very short notice (0 days avg.).
- Target marketing efforts for the Fall season well in advance (at least 51 days) to capture early planners.
- Monitor your own booking lead times against these Reykjavík averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Reykjavík (2026)
Amenity Prevalence
Amenity Insights for Reykjavík
- Essential amenities in Reykjavík that guests expect include: Wifi. Lacking these (this) could significantly impact bookings.
- Popular amenities like Smoke alarm, Kitchen, Fire extinguisher are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Reykjavík: Wifi.
- Prioritize adding missing essentials: Wifi.
- Consider adding popular differentiators like Smoke alarm or Kitchen to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Reykjavík to stay competitive.
Reykjavík Airbnb Guest Demographics & Profile Analysis (2026)
Guest Profile Summary for Reykjavík
- The typical guest profile for Airbnb in Reykjavík consists of predominantly international visitors (99%), with top international origins including Canada, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 1.0% of guests.
- Key international markets include United States (47.1%) and Canada (6.1%).
- Top languages spoken are English (48.1%) followed by Spanish (10.8%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Focus marketing internationally, particularly towards travelers from Canada.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Reykjavík Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Kjósarhreppur | 23 | $7,450 | $522.57 | 50% |
| Grímsnes- og Grafningshreppur | 30 | $4,933 | $398.42 | 48% |
| Ölfus | 18 | $4,595 | $241.21 | 63% |
| Garður | 11 | $4,563 | $268.30 | 60% |
| Grímsnes | 14 | $4,468 | $367.19 | 59% |
| Reykholt | 58 | $4,452 | $335.35 | 51% |
| Hella | 124 | $4,222 | $327.34 | 50% |
| Sandgerði | 16 | $4,219 | $238.45 | 57% |
| Selfoss | 231 | $4,050 | $330.93 | 52% |
| Akranes | 23 | $4,049 | $287.38 | 57% |