This article is general information only and does not constitute financial or tax advice. Consult a qualified tax professional for advice specific to your situation.
Key takeaways
- Western Australia dominates the national yield rankings, with Pilbara resource towns like Tom Price (13.2%), Newman (12.6%), and South Hedland (11.3%) leading for houses.
- Perth, Adelaide, and Brisbane are all outperforming Sydney and Melbourne on yield. Perth houses average 5.3% gross, while Sydney sits at roughly 3%.
- The national vacancy rate hit 1.1% in February 2026. Perth (0.7%), Brisbane (0.9%), and Adelaide (0.8%) are extremely tight, which supports rents and protects yields.
- High headline yields in mining and regional towns come with real risks: single-industry dependence, volatile tenant demand, and limited capital growth.
- For metro investors, units consistently yield 1.5 to 2 percentage points more than houses in every capital city.
If you are looking at where to buy an investment property in 2026, the yield map has shifted. Perth, Adelaide, and Brisbane are delivering returns that make Sydney and Melbourne look pedestrian by comparison, and a handful of regional towns in Western Australia are posting yields above 12%.
But headline numbers do not tell the whole story. A 12% yield in a Pilbara mining town carries very different risk to a 5% yield in an inner-city suburb with consistent tenant demand. This guide breaks down the top-performing suburbs by state, explains what is driving the numbers, and flags the things that a yield table alone will not show you.
If you need a refresher on how the calculation works, our guide to calculating rental yield covers the formulas, worked examples, and common mistakes.
The National Picture
Australia's national vacancy rate dropped to 1.1% in February 2026, down from 1.3% a year earlier. That is an exceptionally tight rental market by historical standards, and it is the primary reason yields have held up even as property prices have risen.
But the story varies enormously by city. Perth's vacancy rate sits at just 0.7%, with only around 1,384 rental properties available across the entire metro area. Brisbane is at 0.9%. Adelaide at 0.8%. These are landlord's markets by any measure.
Melbourne (2.0%) and Sydney (1.4%) are comparatively loose, though still below the long-term average of around 3%. Higher supply in those cities has slowed rent growth and compressed yields.
The capital city yield averages paint a clear picture:
| City | Houses (Gross) | Units (Gross) |
|---|---|---|
| Darwin | 5.01% | 6.67% |
| Perth | 3.60% | 4.37% |
| Hobart | 3.50% | 5.82% |
| Adelaide | 3.18% | 4.49% |
| Canberra | 3.20% | 5.05% |
| Melbourne | 3.10% | 4.53% |
| Brisbane | 2.93% | 3.69% |
| Sydney | 2.80% | 4.24% |
Source: SQM Research, March 2026
Two things jump out. First, units yield more than houses in every single capital city, often by 1.5 to 2 percentage points. Second, Darwin is in a league of its own for yield, though its smaller market and cyclical economy come with different risk considerations.
Calculate Your Rental Yield
Plug in the purchase price, weekly rent, and annual expenses for any property you are researching to see both gross and net yield instantly.
Enter your purchase price and weekly rent to calculate rental yield.
Western Australia: The Yield Leader
WA dominates the national yield rankings so thoroughly that the top 10 suburbs for houses are all in regional Western Australia.
Top WA suburbs by gross yield (houses):
| Suburb | Region | Gross Yield | Median Weekly Rent |
|---|---|---|---|
| Tom Price | Pilbara | 13.2% | varies |
| Newman | Pilbara | 12.6% | $826 |
| Kambalda East | Goldfields | 12.2% | $406 |
| South Hedland | Pilbara | 11.3% | $1,065 |
| Kambalda West | Goldfields | 10.8% | $439 |
| Bulgarra | Karratha | 10.6% | $1,206 |
| South Kalgoorlie | Goldfields | 10.8% | varies |
Source: Cotality (CoreLogic) Best of the Best 2025
These are mining and resource towns. The yields are genuine, but they are driven by the resource cycle. When commodity prices are strong and workers flood in, rents spike. When they pull back, vacancy can climb fast and property values can drop significantly.
For Perth metro, the picture is more moderate but still strong. East Perth one-bedroom apartments are hitting 7.2% gross yield, while Victoria Park and Leederville sit around 6.4% to 6.6%. Perth's 0.7% vacancy rate is the tightest of any capital city, and that undersupply is holding rents firm.
Queensland: Mining Towns and Brisbane Fringe
Queensland's yield stars are in the coal belt. Dysart (10.1%), Moranbah (9.6%), and Blackwater (9.0%) all sit above the national average by a wide margin. Like WA's Pilbara, these are resource-dependent towns, and the same risks apply.
In Brisbane proper, yields are more modest. Bowen Hills and South Brisbane lead at around 5.7% for units. Stapylton stands out with a 5.6% yield and a median price around $420,000, which is genuinely affordable by east coast standards.
The 2026 Hot 100 list (compiled by PropTrack) flagged Herston as one to watch, driven by the future Olympic stadium precinct. Bundaberg, Cairns, and Townsville also made the list on the back of tight rental markets and infrastructure spending in regional QLD.
South Australia: Adelaide's Quiet Run
Adelaide does not grab headlines the way Perth does, but it has been a consistent performer. The metro vacancy rate at 0.8% is extremely tight, and that is translating into solid yields, especially in the northern suburbs.
Top Adelaide metro suburbs (houses):
| Suburb | Area | Gross Yield | Median Weekly Rent |
|---|---|---|---|
| Elizabeth Downs | North | 4.8% | $501 |
| Smithfield | North | 4.7% | $518 |
| Elizabeth North | North | 4.7% | $486 |
| Salisbury North | North | 4.5% | $552 |
| Davoren Park | North | 4.5% | $500 |
For units, Adelaide CBD (5.4%), Salisbury (5.4%), and Mawson Lakes (5.0%) lead the pack.
In regional SA, Port Pirie West (7.3%) and Solomontown (7.0%) offer higher yields, though these are small towns with limited liquidity. Whyalla, which has seen renewed interest thanks to green hydrogen and steel industry investment, sits around 6.0% to 6.2% across several suburbs.
New South Wales and Victoria: Lower Yields, Different Game
Sydney and Melbourne are yield laggards right now. Houses in Sydney average just 2.8% gross, and Melbourne 3.1%. If your strategy depends on positive cash flow, these are hard cities to make the numbers work in, especially with current interest rates. Use the cash flow calculator to see where your property actually lands once you factor in all your holding costs.
That said, there are pockets. In regional NSW, Coonamble (9.4%), Broken Hill (8.8%), and Condobolin (8.9%) post strong yields, though they come with the typical regional trade-offs of limited buyer pools and single-industry risk.
In Victoria, Carlton leads for units at 8.6% gross, driven by student accommodation demand near Melbourne University. In regional VIC, St Arnaud (7.4%+) and Warracknabeal (7.4%+) offer yields well above the state average, with entry prices between $240,000 and $275,000.
For a broader view of the Melbourne market, Echuca stands out at 7.9% for houses and the northern growth corridors (Cranbourne East, Tarneit, Clyde North) balance more moderate yields with genuine population growth.
Darwin and the Northern Territory: High Yield, Smaller Market
Darwin leads every capital city for yield: 5.01% for houses, 6.67% for units. Several NT suburbs crack the top yield tables nationally. Gray posts 8.6% for units, Berrimah 7.9% for houses, and Alice Springs suburbs like Sadadeen and Gillen sit around 8.5%.
The NT also received more nominations than the previous three years combined in the 2026 Hot 100 list, suggesting broader investor interest. But the market is small. Fewer buyers means less liquidity when you need to sell, and the Territory's economy is more concentrated than the larger states. If you are comfortable with that, the yields are hard to ignore.
What the Yield Tables Do Not Tell You
A high gross yield is a starting point, not the answer. Before you buy based on a number in a table, consider what sits behind it.
Net yield is the number that matters. Gross yield ignores your actual holding costs. A 6% gross yield can easily become 3.5% net once you account for council rates, insurance, maintenance, vacancy, and land tax. Our guide to the cost of owning a rental property walks through every line item. You can also run the numbers quickly with our rental yield calculator.
Single-industry towns carry concentration risk. The Pilbara, Goldfields, and Queensland coal belt all post eye-catching yields. But a single mine closure or commodity downturn can send vacancy rates soaring and property values tumbling. If you are looking at these areas, go in with your eyes open about the cycle.
Capital growth and yield often pull in opposite directions. Sydney and Melbourne have the lowest yields because their prices are the highest, but they have also delivered the strongest long-term capital growth. A property yielding 3% in Sydney with 6% annual growth may generate better total returns over a decade than one yielding 10% in a town with flat or declining values. For more on how negative cash flow works within a broader strategy, see our negative gearing explainer. You can also model the tax offset with the negative gearing calculator.
Vacancy rates matter as much as rent levels. A suburb quoting $500 per week rent and a 5% yield is only delivering that if the property is actually tenanted 52 weeks a year. Check the local vacancy rate before trusting the headline yield. Three weeks of vacancy costs you $1,500 in lost rent plus ongoing holding costs.
How to Use This Data
If you already own investment property, check whether your current yield matches what similar properties in your suburb are delivering. If you are sitting well below the local average, it might be time to review your rent. If you are above it, you are doing something right.
If you are looking to buy, use yield as one filter among several. Narrow down suburbs that meet your yield threshold, then layer in vacancy rates, infrastructure spending, population growth, and your own comfort with the location. The break-even rent calculator can help you figure out the minimum weekly rent a property needs to cover its costs. The first investment property checklist covers the due diligence steps that matter most.
Either way, tracking your actual yield over time, based on real income received and real expenses paid, is what separates informed investors from those guessing. propkt calculates both gross and net yield automatically from the transactions you record, so you can see exactly where each property stands without maintaining a spreadsheet.
Frequently Asked Questions
What is the highest rental yield suburb in Australia in 2026?
Tom Price in Western Australia's Pilbara region tops the national list at 13.2% gross yield for houses. South Hedland leads for units at 17.8%. Both are resource towns, so yields are high but tenant demand is tied to the mining cycle.
What is a good rental yield in Australia right now?
In capital cities, a gross yield above 4% is considered solid for houses, while units typically sit between 4.5% and 6%. Regional areas often deliver 5% to 8%, but come with higher vacancy risk. Net yield, after expenses, is the number that matters for cash flow.
Are Perth and Adelaide still outperforming Sydney and Melbourne for yield?
Yes. Perth averages around 5.3% gross for houses and Adelaide sits near 4.8%, compared to Sydney at roughly 3% and Melbourne at 3.5%. Tight vacancy rates in Perth (0.7%) and Adelaide (0.8%) are supporting rents and keeping yields elevated.
Should I invest based on rental yield alone?
No. High yield often comes with trade-offs like lower capital growth, higher vacancy risk, or dependence on a single industry. The best approach considers yield alongside vacancy rates, tenant demand, location fundamentals, and your own cash flow needs.
How do I calculate the rental yield on a property I'm considering?
Gross yield is (annual rent / property value) x 100. Net yield subtracts annual expenses before dividing. Our rental yield calculator does both calculations instantly.