Höfn, a town situated on the coast of Hornafjörður fjord, belonged to the municipality of Nesjahreppur until the town became its own municipality with some 300 inhabitants in 1946. The primary industries are fishing, tourism, trade and manufacturing. Trade was moved from Papós to Höfn in 1897. At the Höfn harbour there is a memorial to the arrival of first settler Ingólfur Arnarson to Iceland, a gift from Norwegian seafarers in 1997.

There is a folk museum and a tourist information desk by the harbour.

The majority of migrating birds to Iceland first reach land in the Hornafjörður region; hence a bird research centre has been set up at Höfn.