Rental Yield Calculator Sydney
Sydney is Australia's lowest-yielding capital: high prices compress gross yields even after record rent growth. The calculator below is pre-set with typical Sydney figures so you can test your own numbers against the market's averages.
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 Sydney yield picture
Sydney houses average roughly 2.8% gross yield - the lowest of any Australian capital - while units average about 4.24%. The 1.4-point gap between houses and units is structural: most of a Sydney house price tag is land, and land does not collect rent.
Rents have been moving fast regardless. Domain's June Quarter 2026 report put Sydney house rents up $50 in a single quarter to a record $850 a week - the sharpest quarterly lift since 2022 - with unit rents at a record $780.
What that means practically: cash-flow-focused investors in Sydney usually buy units or duplexes in the middle and outer rings, while house buyers are underwriting long-term capital growth with negative carry in the meantime. Run both through the net-yield calculation before committing.
Worked example
An investor buys a Western Sydney unit for $700,000 renting at $620 a week, with $5,500 of annual expenses (strata, rates, insurance, maintenance).
Excludes interest, land tax and depreciation. Run your own numbers in the calculator above.
Frequently asked questions
What is a good rental yield in Sydney?
Sydney houses average about 2.8% gross and units about 4.24%, so anything at or above those marks is performing at market for its type. Because Sydney prices are high relative to rents, many investors accept lower yield in exchange for capital growth potential.
Why are Sydney yields so low compared to other cities?
Yield is rent divided by price, and Sydney has Australia's highest prices. Even after record rent increases - house rents hit $850 a week in mid-2026 - the denominator keeps the ratio low. Units yield more than houses because they cost less to buy but rent nearly as well.
Are Sydney units better investments than houses for yield?
For cash flow, generally yes: units average around 4.24% gross versus 2.8% for houses. The trade-offs are strata fees (which drag on NET yield), body corporate governance, and historically softer unit-price growth in some rings.
How do I calculate net rental yield?
Subtract annual expenses (strata, rates, insurance, maintenance, property management) from annual rent, then divide by the purchase price. The calculator above shows both gross and net when you enter expenses.
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