The name Höfn means harbour and it is a fishing port surrounded on three sides by the sea, with beaches on a long shoreline to the southeast.

Shoals and glacial rivers traverse this area with many shifting lagoons and sand reefs being formed.

Höfn is surrounded by several small islands to the east of the town, the largest of which is Mikley [ˈmɪhklˌeiː], followed by Krókalátur [ˈkʰrouːkaˌlauːtʏr̥] and Hellir [ˈhɛtlɪr̥].

Nearby areas include Suðursveit [ˈsʏːðʏrˌsveiːt] (the birthplace of Þórbergur Þórðarson), Öræfasveit, Lón [ˈlouːn], Mýrar [ˈmiːrar̥] and Nes [ˈnɛːs].

On 6 June 1998 Hornafjarðarbær, Bæjarhreppur [ˈpaiːjar̥ˌr̥ɛhpʏr̥], Borgarhafnarhreppur [ˈpɔrkarˌhapnar̥ˌr̥ɛhpʏr̥] and Hofshreppur [ˈhɔfsˌr̥ɛhpʏr̥] were united to form the new municipality of Sveitarfélagið Hornafjörður [ˈsveiːtarˌfjɛːˌlaijɪð ˈhɔ(r)tnaˌfjœrðʏr̥].

[10] A cultural highlight of the town is the annual Humarhátíð [ˈhʏːmarˌhauːˌtʰiːθ] (a lobster festival) held on the first weekend of July.

[11] Kirkja heilagrar fjölskyldu og heilags Jean-Marie Vianney is a small modern Roman Catholic church which was inaugurated on 7 September 2013.

[12] Höfn contains several museums, including an exhibition about Vatnajökull National Park in Gamlabúð [ˈkamlaˌpuːθ] which has a variety of displays on the geology, ecology and history of the glacier.

[14] Originally called "Krambúðin" [ˈkʰramˌpuːðɪn], meaning "The Mercantile Store", in a short time it had managed to become one of the main trade centers for the people of southeast Iceland, as there were few other settlements in the area.

[3] Höfn offers a variety of services and stores including a supermarket, pharmacy, a health centre (Heilsugaeslustöð), a bank, three hairdressers, two gas stations, a golf course and a swimming pool.

In the town there are several hotels, a camping ground, a youth hostel, guesthouses and restaurants including Pakkhúsið, Humarhöfnin, Íshúsið Pizzeria, Ottó, Kaffihornið, Ósinn, Z Bistro and Hafnarbúðin.

Various tour operators offer day trips including whale watching and flights to Vatnajökull.

In the past, during the harsh winter months, the road just east of Höfn would often become blocked because of regular snow, hampering communications and access.

Höfn is one of very few harbours in the southern part of Iceland and it needs to be navigated with care due to the changing pattern of shoals.

Dredging is an essential requirement to remove sand that has accumulated near the harbour so that ships can safely moor.