Top Suburbs for Rental Yield in Victoria
To help you find the ideal place for your investment property, we’ve compiled the suburbs with the highest rental yields.
When it comes to real estate investments, your property’s location is an essential detail. As a property investor, you need to do your due diligence and find a suburb with a price range that fits your budget and can provide the best return on investment.
To help you find the ideal place for your investment property, we’ve compiled the suburbs with the highest rental yields below.
Victoria rental real estate overview
Many property investors believe that Victoria has worthwhile real estate investment opportunities due to its steady economic growth, increasing population, and a strong demand for rental housing with a low vacancy rate. In Melbourne, the residential vacancy rate is 2% according to SQM Research.
Victoria has one of the strongest economies in the country, home to industries such as finance, manufacturing, tourism, construction, and agriculture. The stable and strong local economy helps contribute to the growing population, rental demand, and increasing average house prices.
Suburbs in Greater Melbourne with the highest rental yields
According to the latest market insights from REIV, the median weekly rent is $580, and the average rental yield is 3.3% across Metropolitan Melbourne.
For houses in Greater Melbourne, rental yields for the best-performing suburbs range from 4.2% to 4.4%. The median rental value varies more significantly with prices between $505 and $632.
It’s important to note that the highest rental yield suburbs in Greater Melbourne for units are outperforming those for houses. The rental yield for units ranges from 5.9% to 8.6% with median rental values of $488 to $724.
Highest rental yield suburbs in Greater Melbourne for houses
| Suburb | Region | Rental yield | Median rental value |
|---|---|---|---|
| Koo Wee Rup | South East | 4.4% | $632 |
| Hastings | Mornington Peninsula | 4.3% | $630 |
| Campbellfield | North West | 4.3% | $518 |
| Coolaroo | North West | 4.3% | $505 |
| Dallas | North West | 4.3% | $516 |
| Lang Lang | South West | 4.3% | $630 |
| Meadow Heights | North West | 4.2% | $537 |
| Roxburgh Park | North West | 4.2% | $569 |
| Cranbourne West | South East | 4.2% | $612 |
| Clyde | South East | 4.2% | $613 |
Source: Cotality Best of the Best Report 2025
Rental yields in the Greater Melbourne region for houses are lower compared to units in Greater Melbourne and rental yields in Regional Victoria. It may be attributed to several factors, such as new tax reforms, high property costs, and more competition.
Most of the top yielding suburbs for houses in Greater Melbourne can be found in the Melbourne – North West region, with only three found in Melbourne – West and Melbourne – North East.
Highest rental yield suburbs in Greater Melbourne for units
| Suburb | Region | Rental yield | Median rental value |
|---|---|---|---|
| Carlton | Inner | 8.6% | $566 |
| Melbourne | Inner | 7.2% | $675 |
| Southbank | Inner | 6.8% | $712 |
| Notting Hill | South East | 6.5% | $570 |
| Travancore | Inner | 6.5% | $534 |
| West Melbourne | Inner | 6.4% | $643 |
| Docklands | Inner | 6.1% | $724 |
| North Melbourne | Inner | 5.9% | $583 |
| Footscray | West | 5.9% | $523 |
| Flemington | Inner | 5.9% | $488 |
Source: Cotality Best of the Best Report 2025
Rental yields for units are much higher compared to those for houses in Greater Melbourne. Units also have a higher median rental value, which some investors find more attractive in terms of returns. Most of the suburbs on the list above are found in the Inner Greater Melbourne region. The region’s proximity to the Melbourne CBD could be a factor in their rental yield compared to the rest of Greater Melbourne.
Suburbs in Regional Victoria with the highest rental yields
Rental yields in Regional Victoria are higher compared to Greater Melbourne. The relatively lower property prices, population, economic growth, and positive real estate trends may have influenced the rental yield disparity.
Highest rental yield suburbs in Regional Victoria for houses
| Suburb | Region | Rental yield | Median rental value |
|---|---|---|---|
| Echuca | Shepparton | 7.9% | $889 |
| Nhill | North West | 7.3% | $349 |
| Kerang | North West | 6.3% | $401 |
| Morwell | Latrobe - Gippsland | 5.9% | $433 |
| Stawell | North West | 5.9% | $427 |
| Portland | Warrnambool and South West | 5.6% | $479 |
| Red Cliffs | North West | 5.5% | $469 |
| Merbein | North West | 5.5% | $475 |
| Moe | Latrobe - Gippsland | 5.4% | $438 |
| Swan Hill | North West | 5.4% | $505 |
Source: Cotality Best of the Best Report 2025
For Regional Victoria, houses have almost similar rental yields when compared to units. This may mean there's an equal or comparable demand for houses in the area. Although most of the suburbs are found in the North West region, the rental yields within the area still differ.
Highest rental yield suburbs in Regional Victoria for units
| Suburb | Region | Rental yield | Median rental value |
|---|---|---|---|
| Echuca | Shepparton | 7.6% | $647 |
| Portland | Warrnambool and South West | 7.2% | $383 |
| Mooroopna | Shepparton | 6.3% | $381 |
| Sale | Latrobe - Gippsland | 6.1% | $385 |
| Traralgon | Latrobe - Gippsland | 6.1% | $369 |
| Moe | Latrobe - Gippsland | 6.0% | $330 |
| Ararat | North West | 6.0% | $339 |
| Morwell | Latrobe - Gippsland | 6.0% | $344 |
| Shepparton | Shepparton | 5.9% | $403 |
| Benalla | Hume | 5.8% | $399 |
Source: Cotality Best of the Best Report 2025
The top rental yield suburbs for houses in Regional Victoria are mostly found in Latrobe – Gippsland region, with a few in Shepparton. The rental yields for the suburbs are around 7.6% to 5.8% with a median rental value between $344 and $647. Echuca’s median rental value of $647 is almost double compared of the other suburbs on the list.
A majority of the top-performing suburbs have around 6% rental yields, with only two slightly below. Because of the close rental yield percentages among the top suburbs, investors may have more options when choosing a place to purchase investment properties.
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