Gross rental yields in Iceland: Reykjavik
The average gross rental yield in Iceland stands at 5.42% (Q4, 2026). Previously, in Q2 2026, the rental yield was 5.41%.
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 | $496,300 | $2,190 | 5.30% |
| 2-Bedroom | $701,000 | $2,630 | 4.50% |
| 3-Bedroom | $796,100 | $2,925 | 4.41% |
| Reykjavík mainland avg. Rental Yields | 4.74% | ||
| ICELAND - All Dwellings | COST (€) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Iceland (all locations) | |||
| 1-Bedroom | Unlock | Unlock | Unlock |
| 2-Bedroom | Unlock | Unlock | Unlock |
| 3-Bedroom | Unlock | Unlock | Unlock |
| Iceland avg. Rental Yields | Unlock | ||
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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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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.
