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Updated Mar 5, 2026 · Jan 26, 2021

Finding a Rental Apartment in Iceland

Finding a Rental Apartment in Iceland
Movingtoiceland.com Editor
Updated Mar 5, 2026 · Published Jan 26, 202114 min read

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A practical guide to finding a rental apartment in Iceland as a foreigner, covering current prices, where to search, how to apply, tenant rights, and a complete directory of 40+ rental websites and Facebook groups.

What you'll find in this guide

  1. How the rental market works

  2. What you'll pay

  3. Where to search

  4. How to apply and what landlords expect

  5. Deposits, leases, and your rights

  6. Scams to watch for

  7. The smart arrival strategy

  8. Full resource directory: websites, Facebook groups, student housing

  9. FAQ

How the Icelandic rental market works

Finding a rental apartment in Iceland as a foreigner is one of the hardest parts of the move. The market is tight, vacancies are low, and competition for decent listings is intense, especially in the Reykjavik capital area where most newcomers settle.

The core problem is supply. Iceland's population has grown steadily through immigration (immigrants now make up about 19% of the population, as of January 2025), but housing construction has not kept pace. Roughly two-thirds of Iceland's population lives in the greater Reykjavik area, and that is where demand is highest.

There is no single dominant rental platform like you might be used to in other countries. Most long-term rental listings in Iceland appear across a patchwork of websites, Facebook groups, and property management companies. Facebook is, genuinely, the most active channel. The largest group, simply called Leiga (meaning "rent" in Icelandic), has over 60,000 members.

For a broader picture of how housing fits into your relocation, see our complete guide to moving to Iceland.

What rent costs in Iceland

Rent in Iceland depends on size, location, and whether you are renting from a private landlord or a property management company. Prices are highest in Reykjavik and the surrounding capital area, where most foreigners live. They have risen steadily over the past several years. The HMS rental price index for the capital region showed an 11.4% year-on-year increase in early 2025.

According to HMS (Iceland's Housing and Construction Authority) data on newly registered contracts (as of February 2025):

  • 1-room apartment: ~187,000 ISK/month

  • 2-room apartment: ~242,000 ISK/month

  • 3-room apartment: ~284,000 ISK/month

Those figures reflect national registered contract averages, which tend to lag behind open market prices. On Facebook groups and international platforms, asking prices run noticeably higher. A realistic range for a one- or two-bedroom apartment in Reykjavik is 250,000–350,000 ISK per month (as of early 2026). Three-bedroom apartments typically fall between 300,000–450,000 ISK (as of early 2026).

Central neighborhoods in the Capital Area (Reykjavik and surroundings) command premium prices (postal codes 101, 107, 105). Outer suburbs like Grafarvogur (112), Breiðholt and Árbær (109–111), and the neighboring towns of Kópavogur, Hafnarfjörður, and Garðabær can be cheaper, though still not inexpensive by international standards. For a full map of which postal codes correspond to which areas, see our postal codes guide.

Outside the capital area, rent drops noticeably. In larger towns like Akureyri, Reykjanesbær, and Selfoss, expect to pay roughly 150,000–250,000 ISK for a one-bedroom apartment (as of early 2026). Smaller towns are cheaper still, but job options and services are more limited.

Rent usually does not include electricity and heating. Budget an additional 15,000–25,000 ISK per month for utilities (as of 2025). Geothermal energy keeps heating costs remarkably low compared to mainland Europe, but electricity adds up in winter.

For a full breakdown of monthly costs, see our cost of living guide. For rent prices by area and apartment size, see our rent cost guide.

Where to find rental listings

Rental websites

The main platforms for long-term apartment rentals in Iceland include:

  • Igloo: the largest dedicated rental platform in Iceland, with listings across the country and an English interface.

  • Leiga.is: a free listing site for landlords, with a range of apartments and houses.

  • Leiguland.is: another dedicated long-term rental platform with English support.

  • Newspaper classifieds: Vísir and Morgunblaðið (mbl.is) both have rental listing sections. These skew toward Icelandic-speaking users but often have listings not posted elsewhere.

Large property management companies also rent directly:

  • Heimstaden (formerly Heimavellir): Iceland's largest private landlord with roughly 1,800 apartments.

  • ALMA: around 1,200 rental units, with an English-language portal and clear lease processes.

  • Briet: smaller portfolio, focused on the capital area.

Facebook groups

Facebook remains the single most active channel for apartment rentals in Iceland, especially from private landlords. Searching the word leiga or íbúð til leigu (apartment for rent) will surface dozens of groups. The full list is in the resource directory at the bottom of this article, but the most important groups to join immediately are:

For groups covering specific neighborhoods and towns outside Reykjavik, see the complete Facebook group directory below.

Our apartment browser

You can also browse current listings on our apartment browsing tool, which aggregates rental options in one place.

How to apply for a rental apartment

Good apartments in Iceland disappear fast, especially in the capital area. Listings in popular areas can be gone within hours. Speed and presentation both matter.

When you respond to a listing, send a short, clear message to the landlord. Include your name, contact information, employment status, and a brief note about yourself. If you have a reference from a previous landlord, mention it. Landlords receive many inquiries, so a professional, concise message stands out.

Most Icelandic landlords prefer to meet prospective tenants in person before signing a lease. This is one of the reasons finding an apartment from abroad is so difficult (more on this below).

You will need a kennitala (Iceland's national ID number) to sign a formal lease and register the contract. If you have not yet received yours, see our kennitala guide. Some landlords will sign a lease before your kennitala is issued, but many will not.

A few practical tips:

  • Act immediately. Check new listings multiple times per day. Set Facebook group notifications to "All Posts."

  • Write in English. Most landlords in the capital area speak English, and writing a clear English message is better than a poorly translated Icelandic one.

  • Be honest about your situation. If you are new to Iceland, say so. Many landlords rent to foreigners regularly.

  • Have documents ready. Employment contract or proof of income, passport copy, and any previous landlord references.

Deposits, leases, and tenant rights

The lease

All rental agreements in Iceland should be in writing. Since January 1, 2026, all landlords are required to register tenancy agreements in the HMS Rent register, regardless of how many properties they own. This registration is important: it formalizes the lease terms and is a prerequisite for applying for housing benefits.

Leases are typically either fixed-term (most commonly 12 months) or open-ended. For fixed-term leases of 12 months or less, rent cannot be increased or indexed during the contract period. This rule does not apply to non-profit rental companies, student housing, or halfway houses. For longer leases, either party may request a rent adjustment after the first 12 months.

Deposits

Landlords can require a security deposit of up to three months' rent. The deposit must be held in a separate, interest-bearing bank account (not mixed with the landlord's personal funds). When the tenancy ends, the landlord has four weeks to submit any claims against the deposit. If no claim is made, the full deposit plus accrued interest must be returned to you.

An alternative to paying a cash deposit is a rental guarantee through a third-party provider like Leiguskjól. This can be easier for newcomers who may not have several months' rent available upfront.

Tenant rights

Tenant rights in Iceland are governed by the húsaleigulög (Rent Act, No. 36/1994). The law is generally considered tenant-friendly. Key protections include:

  • Landlords must maintain the property and all fixtures (plumbing, electrical, appliances).

  • Rent increases during an active lease are regulated. For leases under 12 months, no increases are allowed at all.

  • Termination requires written notice. For fixed-term leases that include a termination clause, the mutual notice period must be at least three months. For open-ended leases, notice periods vary by housing type.

  • If a landlord fails to make necessary repairs after being notified in writing, the tenant can arrange repairs and deduct the cost from rent (after four weeks of inaction and approval from an independent assessor).

If you have a dispute with your landlord, the Consumers' Association of Iceland operates a free Tenants' Support helpline. Cases that cannot be resolved can be referred to the Kærunefnd húsamála (Housing Complaints Committee), which issues binding rulings.

Housing benefits

Tenants on lower incomes may qualify for húsnæðisbætur (housing benefits), monthly payments from HMS to help cover rent. The amount depends on household size, income, assets, and rent. You can apply through island.is. One requirement: your lease must be registered in the HMS system.

Rental scams in Iceland

Scams exist in Iceland's rental market, especially targeting foreigners unfamiliar with how things work here.

The most common pattern: a listing that seems too good to be true (low price, great location, professional photos) with a landlord who claims to be abroad and asks you to transfer a deposit before viewing the apartment. This is almost always fraud.

Rules to protect yourself:

  • Never transfer money before visiting the apartment in person and meeting the landlord or their verified representative.

  • Be suspicious of listings priced well below market rate. If a one-bedroom in central Reykjavik is listed for 150,000 ISK, something is wrong.

  • Verify ownership. You can check property records through Registers Iceland (Þjóðskrá).

  • Insist on a written lease before paying anything.

  • Use third-party deposit services like Leiguskjól rather than handing cash directly to the landlord.

Arriving without an apartment

Finding a rental apartment in Iceland from abroad is difficult. Most landlords want to meet tenants face-to-face, and the best listings move too fast to coordinate remotely.

The proven strategy: book temporary accommodation (Airbnb, guesthouse, or hostel) for two to four weeks and search for a permanent apartment after you arrive. This is what most successful relocators do.

Once you are on the ground, you can attend viewings the same day they are posted, meet landlords in person, and sign leases quickly. Two weeks is tight but workable. Four weeks gives you a comfortable buffer.

If you are moving with a family or have a firm start date for work, consider asking your employer for help. Some Icelandic employers, particularly in sectors that recruit internationally (healthcare, IT, tourism), assist with temporary housing or have contacts with landlords.

For a complete week-by-week breakdown of what to do when you arrive, including housing, see our first 30 days checklist.

Rental websites

The full directory of rental websites active in Iceland (as of March 2026):

Rental Facebook groups

Facebook is the most active channel for apartment rentals in Iceland. Below is the most complete list available, organized by area.

Capital region (Reykjavik and surroundings)

Reykjanes peninsula (Keflavík and surroundings)

Northern Iceland (Akureyri and surroundings)

Other regions

Commercial space

Student housing

If you are moving to Iceland to study, your university likely offers dedicated housing or can point you to resources:

Student housing waitlists fill up fast. Apply as early as possible after receiving your acceptance letter. For visa requirements, see our student visa guide.

Frequently asked questions

Can I find an apartment in Iceland from abroad?

It is possible but difficult. Most landlords prefer to meet tenants in person, and the best listings move within hours. The most reliable approach is to book temporary accommodation for two to four weeks and search after arriving. Some property management companies like Heimstaden and ALMA accept remote applications, which can be worth trying.

How much does a one-bedroom apartment cost in Iceland?

In Reykjavik, expect to pay 250,000–350,000 ISK per month for a one- or two-bedroom apartment (as of early 2026). Central neighborhoods (101, 105, 107) sit at the higher end. Suburbs and neighboring towns are cheaper. Outside the capital area, rents are noticeably lower, particularly in smaller towns. Utilities (electricity, heating) add 15,000–25,000 ISK on top in either case.

Do I need a kennitala to rent an apartment?

You need a kennitala to sign a formal registered lease and to apply for housing benefits. Some private landlords will rent to you before it is issued, but most prefer tenants who already have one. Getting your kennitala should be a top priority after arriving. See our kennitala guide.

What is the typical deposit for a rental in Iceland?

Deposits range from one to three months' rent. By law, the deposit must be kept in a separate interest-bearing bank account. The landlord has four weeks after you return the property to make any claims against the deposit. If no claim is made, the full amount plus interest must be returned to you.

Is rent in Iceland linked to inflation?

About 70% of existing rental contracts in Iceland are linked to the consumer price index (CPI) (as of January 2025, per HMS data), meaning rent adjusts monthly based on inflation. For new leases of 12 months or less, rent indexation and increases are prohibited during the contract term (as of September 2024 amendments to the Rent Act). For longer leases, rent adjustments can only be requested after the first 12 months.

Where can I get help with a landlord dispute?

The Consumers' Association of Iceland operates a free Tenants' Support helpline that provides legal guidance on rental matters. If your dispute cannot be resolved, it can be referred to the Housing Complaints Committee, which issues binding rulings.

Last updated: March 2026

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