Höfn is located on a peninsula in the southeast of Iceland. 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, followed by Krókalátur and Hellir.
Nearby areas include Suðursveit (the birthplace of Þórbergur Þórðarson), Öræfasveit, Lón, Mýrar and Nes. In Nes there is a small village called Nesjahverfi. Reykjavík, the capital of Iceland, is about 458 kilometres (285 mi) from Höfn along the south coast.
A cultural highlight of the town is the annual Humarhátíð (a lobster festival) held on the first weekend of July. During the summer season, the Glacier Exhibition is held in the old supermarket building.
Gamlabúð (“Old Shop”) is one of the oldest houses in Höfn still being used. It has served at least three purposes and has been moved around southeast Iceland. First it was a trade center in Papós and then it was a store in Höfn. Most recently it has been moved again and now it serves as an information center for Vatnajökull National Park