Administratively the island forms the main part of the Vormsi vald (rural municipality).

During the war, nearly all of Vormsi's population, along with other Swedes living in Estonia, forming the larger region of Aiboland, were evacuated, or fled, to Sweden.

The villages on the island include: Hullo (the administrative centre), Sviby (the main port), Söderby, Norrby, Diby, Rälby, Förby, Borrby, Kärrslätt, Saxby, Suuremõisa (Magnushof, formerly Busby[2]), Rumpo (the main beach area) and Hosby.

This is attributed to the fact that many comparatively wealthy people own summer homes on the island and are registered as residents, so their yearly income tax is forwarded to the island's budget.

The island of Vormsi has homeowners from several countries and regions in Estonia, Sweden, Finland, Switzerland and elsewhere.