Höfn is located on the headland between Hornafjörður and Skarðsfjörður, and along with neighbouring communities forms the municipality of Hornafjörður. Settlement began late in the 19th century when Ottó Tuliníus moved his store from Papaós to Höfn. That building has now been restored  and turned into a museum. Höfn has long been the trading centre for Austur-Skaftafellssýsla county. Within town limits is Ósland, a protected leisure area.

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