Gross rental yields in Iceland: Reykjavik
The average gross rental yield in Iceland stands at 5.41% (Q2, 2026). Previously, in Q4 2025, the rental yield was 5.34%.
Cities and areas compared
- Reykjavík
- Iceland (all locations)
Historical rental yields in Iceland
| REYKJAVÍK - All Dwellings | COST (€) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Reykjavík (all locations) | |||
| 1-Bedroom | €493,100 | €2,150 | 5.23% |
| 2-Bedroom | €645,800 | €2,570 | 4.78% |
| 3-Bedroom | €721,500 | €2,780 | 4.62% |
| Reykjavík mainland avg. Rental Yields | 4.88% | ||
| ICELAND - All Dwellings | COST (€) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Iceland (all locations) | |||
| 1-Bedroom | €449,300 | €2,085 | 5.57% |
| 2-Bedroom | €557,600 | €2,500 | 5.38% |
| 3-Bedroom | €614,600 | €2,710 | 5.29% |
| Iceland avg. Rental Yields | 5.41% | ||
| All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents' fees, and any other costs. Net yields (what you'll really earn) are typically around 1.5% to 2% lower. Source: Global Property Guide and Fasteignir |
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View the full rental yield dataset (2025 - Present)
Research Methodology:
Our rental yield analysis is conducted biannually to ensure up-to-date insights. We assess 1-bedroom, 2-bedroom, and 3-bedroom properties across the largest areas in Iceland, comparing median rental prices with median purchase prices to determine gross rental yields.
We source data from a leading local property platform, capturing both asking rents and list prices to reflect current market conditions. The gross rental yield is calculated using the following formula:
(Median Monthly Rent × 12) ÷ Median Purchase Price × 100
For example, if the median monthly rent is €500 and the median purchase price is €100,000, the yield is calculated as:
(€500 × 12) ÷ €100,000 = 6% Gross Rental Yield
Note: NET yields vary from country to country, but are usually 1.5-2% lower.
