Vestmannaeyjabær

As of June 2026, Vestmannaeyjar has 234 active Airbnb and VRBO listings. This represents a 8% decrease from the previous year.

The average Airbnb or VRBO in Vestmannaeyjabær generates ISK4.1M per year. High-performing properties earn ISK9.7M/year, while low-performing properties earn ISK1.9M/year. Despite declining supply and revenue, the market remains competitive with 37% occupancy, indicating that performance variance reflects differentiation rather than scarcity—high performers generate 2.4x average returns while the market contracts.

Airbnb and VRBO can be profitable in Vestmannaeyjabær. Average annual revenue is ISK4.1M with 37% occupancy. High-performing properties earn up to ISK9.7M/year. Declining supply and revenue suggest a contracting market, while the substantial gap between average and top performers indicates significant differentiation in how properties compete for limited demand.

The average occupancy rate for Airbnbs and VRBOs in Vestmannaeyjabær is 37%. This occupancy level, combined with an average nightly rate of ISK42K, results in a RevPAR (revenue per available room) of ISK7K per day.

4+ bedroom properties demonstrate the strongest performance in Vestmannaeyjabær, with annual revenue of ISK7.2M. These properties balance operating costs and rental demand most effectively in the Vestmannaeyjabær market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Vestmannaeyjabær area. Iceland's STR rules are primarily set at the national level, but individual municipalities may have local requirements. I recommend contacting the Vestmannaeyjabær municipal office directly or checking their official website for current regulations, as enforcement practices in smaller Icelandic municipalities can vary significantly. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Vestmannaeyjabær Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 8% year-over-year, while RevPAR has decreased 24%. This indicates balanced supply-demand dynamics. The significant gap between high ($9.7M) and average ($4.1M) revenue suggests substantial performance variance across properties, while 37% occupancy indicates substantial unutilized capacity despite reduced supply.

Launch around March, 2-3 months before peak fall season (June peaks). This pre-peak timing lets you build reviews when competition is 70% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Vestmannaeyjabær listings include: Kitchen (99%), Heating (90%), Tv (62%), Balcony (55%), Private Yard (51%). Amenities that boost revenue the most include Sauna, Bbq, Hot Tub, with Sauna properties earning approximately 67% more (ISK11.0M/year vs ISK6.6M/year).

Monthly estimated revenue per listing in Vestmannaeyjabær over the last 12 months: May: ISK201K, June: ISK276K, July: ISK276K, August: ISK273K, September: ISK259K, October: ISK237K, November: ISK144K, December: ISK177K, January: ISK125K, February: ISK199K, March: ISK241K, April: ISK249K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Vestmannaeyjabær is ISK42K, up 18% year-over-year. By property size: 1-bedroom properties average ISK35K/night, 2-bedroom properties average ISK39K/night, 3-bedroom properties average ISK49K/night, 4+ bedroom properties average ISK82K/night. Rates peak in December and are lowest in May.

Guests in Vestmannaeyjabær book an average of 51 days in advance, down 24% from last year. By property size: 1-bedroom: 47 days, 2-bedroom: 55 days, 3-bedroom: 55 days, 4+ bedroom: 57 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Vestmannaeyjabær Airbnb and VRBO market has seen the following changes: supply declined 8%, revenue per listing decreased 24%, occupancy fell 8%, average nightly rates increased 18%, and lead time decreased 24%. Despite rate increases, the market is contracting—declining supply and occupancy alongside plummeting revenue suggests weakening demand outpacing supply exits. The vast gap between average and top-performing listings indicates highly concentrated performance among elite properties.

In Vestmannaeyjabær, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Monday. Weekends show 6% higher occupancy than weekdays.