Rental rates

Bjarg is a nonprofit housing foundation.

This means that apartments are rented at cost price.

The income of applicants/tenants, therefore, does not control the rental price.

Rental rates are different between locations since the cost of projects differs.

The monthly rent at Bjarg is indexed. That means the base rent changes monthly proportionally to changes in general prices in Iceland. To measure the change in prices, the consumer price index is used. It is an index to measure the general price level in the economy. It is published by Statistics Iceland. The index measures price changes of a specific basket of goods and services which is the base of the index. Prices of an extensive sample of goods and services are collected for a week during the middle of each month for measuring price changes. The basket reflects the average household spending, e.g. on food, services, petrol, and housing. The increase in price is referred to as inflation. This means the rent increases with inflation in nominal terms.

For example, if the rental price in your contract is 170.000 and the price index in the contract is 577,3, this is how the rental price in June 2023 is calculated:

Price index in June '23 being 588,3: Indices — overview - Statistics Iceland (statice.is)

 = 170.000 x (588,3/577,3) = 173,239 (rent for May 2023)