Rental Yield Calculator Melbourne
Melbourne's yields sit near the bottom of the capital-city table alongside Sydney, with the loosest vacancy rate of the four major capitals. The calculator is pre-set for Victorian conditions - swap in your own numbers to see where a property lands.
Enter your purchase price and weekly rent to calculate rental yield.
Market context: SQM Research capital-city averages (March 2026) and Domain June Quarter 2026 Rent Report.
The Melbourne yield picture
Melbourne houses average about 3.1% gross yield and units about 4.53%. At a 2.0% vacancy rate, Melbourne has more rental choice than any other major capital - which caps how hard landlords can push rents and keeps yields compressed.
The exceptions are real, though. Carlton units near the university district have posted gross yields around 8.6% on student-driven demand, and regional centres like Echuca have delivered house yields near 7.9% - numbers the metro market cannot touch.
For metro buyers, the growth corridors - Cranbourne East, Tarneit, Clyde North and surrounds - balance moderate yields with genuine population growth. Just remember Victoria's land tax settings apply from a low threshold, so run net numbers, not just gross.
Worked example
An investor buys a corridor house in Clyde North for $720,000 renting at $560 a week, with $4,200 of annual expenses.
Excludes interest and land tax. Victoria's land tax threshold is low by national standards - model it separately for higher-value land holdings.
Frequently asked questions
What is a good rental yield in Melbourne?
Around 3.1% gross for houses and 4.5% for units is market-average. A metro house beating 4% gross is doing well; units above 5% usually mean inner-ring student or lifestyle demand.
Is Melbourne or Sydney better for rental yield?
Marginally Melbourne on houses (about 3.1% vs 2.8%), and slightly ahead on units too (4.53% vs 4.24%). Both trail Brisbane and Perth by a wide margin. Neither city competes on cash flow right now.
Do Melbourne units really out-yield houses by that much?
Yes - roughly 1.4 percentage points on current averages, consistent with every Australian capital. The catch for NET yield is strata costs, which typically run higher on units than a house's equivalent holding costs.
Which Melbourne suburbs have the highest rental yields?
Inner-university precincts like Carlton have led units at around 8.6% gross, driven by student demand. Regionally, Echuca has posted house yields near 7.9%. High-yield pockets usually carry specific demand drivers - understand them before extrapolating.
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