Greater Melbourne short-term rental report 2026

By MadeComfy

Your Melbourne apartment could earn more as a professionally managed short-term rental. In the CBD, Southbank and Richmond, estimated annual gross revenue for two-bedroom apartments was about $58,000. That is roughly $18,900–$21,500 above the local long-term rent comparisons, before costs.

We see a worthwhile opportunity for Melbourne investors in 2026, especially where a well-presented apartment can attract guests throughout the year. Higher borrowing costs make that extra income more valuable. The job is to turn Melbourne’s busy summer, major events and everyday travel into a strong annual result—and keep enough of the additional revenue to improve your cash flow.

Melbourne short-term versus long-term rental income

Start close to home. These nine comparisons pair professionally managed two-bedroom apartments with median long-term rents for two-bedroom units in the corresponding suburbs. They give you a more useful starting point than comparing a citywide Airbnb average with the rent on your own property.

Australian dollars, for the year to August 2026. Short-term figures are estimated gross market revenue, including cleaning charges, before management, platform charges, levy and other owner costs. Long-term figures use the linked realestate.com.au suburb profiles for the same period, assuming 52 paid weeks. Short-term market boundaries and suburb boundaries can differ; these are comparisons between groups of properties, not the same homes under both arrangements.

Richmond and St Kilda offer an interesting middle ground. Their annual short-term revenue sits near that of the central apartment markets, while their long-term rent comparisons are lower. Fitzroy and Collingwood show larger gross differences, although their professional two-bedroom apartment segments are much smaller: just 14 and 18 listings respectively recorded a booking in the latest month.

Carlton’s gap is narrower. At about $10,400 before costs, the market average leaves less room for additional expenses. A distinctive property may still make a compelling case, but its own appraisal needs to do the work.

What could your Melbourne property earn?

Use our calculator for an instant estimate of your property’s monthly gross income with MadeComfy. You can then compare it with a current rental appraisal and ask our team to assess the costs. For reference, a $750 weekly lease produces $3,250 a month when annualised over 52 paid weeks.

Richmond: what remains after management and the levy?

The Richmond comparison starts at about $57,900 in annual short-term revenue against $36,400 in long-term rent. Allowing for management on both sides gives a clearer view of the opportunity.

Illustrative management allowances, not fee quotes. The levy scenario deducts 7.5% of the short-term revenue benchmark, assuming the whole amount is the taxable booking fee and the cost is absorbed from that income. Where a platform collects the levy separately from guests, reconcile its treatment with the payout statement rather than deducting it twice. Figures are rounded independently.

That leaves an estimated $8,100–$9,700 annual advantage before costs outside the management arrangement. Those may include platform charges, cleaning and linen, utilities, insurance, furnishing and replacements. Use the written management proposal to establish which charges are included; cleaning income must be matched against the cleaning expense.

For your property, subtract the remaining costs under each option. Include letting fees and any vacancy allowance on the long-term side. Loan repayments, tax and the property’s underlying holding costs sit outside this illustration. That gives you the extra income you could retain over a full year.

The wider Melbourne property market: income matters more

Many Melbourne investors are making this decision against a tougher backdrop. The Reserve Bank raised the cash rate to 4.60% in September, increasing pressure on borrowing costs. On a $600,000 interest-only loan, a one-percentage-point increase in the actual loan rate adds $6,000 a year in interest. That is a meaningful amount for an investment property to recover through rent.

Sale prices have also softened. Cotality’s September housing report found Melbourne’s upper-quartile house values were 10.5% below their peak, with more affordable homes and units proving relatively resilient. That figure describes the higher-priced house segment, not every Melbourne property. For an existing owner, the practical question is how well the home can support its holding costs while the sales market is weaker.

Long-term rents, meanwhile, have been rising. Median two-bedroom unit rents in the CBD, Southbank and Docklands increased by 5.7%, 4.9% and 5.4% respectively over the year. The comparisons above already include those stronger rents. You should use an up-to-date long-term appraisal when assessing a switch.

The encouraging part is that a meaningful gross income gap remains in several established apartment markets. For an owner facing higher repayments, that makes a fresh short-term rental assessment worth doing. It also puts more weight on everyday pricing, occupancy and cost control.

Melbourne Airbnb income by property size

You do not need a large house to explore short-term letting. Across Greater Melbourne, professionally managed studios had estimated annual revenue of about $39,200, with 70% occupancy. One-bedroom homes reached approximately $43,600.

Estimated gross annual revenue from professionally managed entire homes across the Melbourne market; all property types within each bedroom group. Four-plus bedrooms includes homes substantially larger than four bedrooms. Occupancy measures booked nights as a share of nights offered, rather than all 365 nights. These size benchmarks are broader than the two-bedroom apartment comparisons above.

Compact apartments can suit solo visitors and couples who value location, a kitchen and somewhere comfortable to work. Your layout matters: usable living space, light, storage and an easy arrival can make a small apartment much more appealing than its floor area suggests.

Three-bedroom homes averaged about $67,600. For families and groups, separate bedrooms, more than one bathroom and a proper dining area can support a stronger nightly rate. The four-plus-bedroom group reached about $87,300, but its occupancy was lower at 42%. Larger homes need enough income from each stay to justify their furnishing and running costs.

Looking at the same bedroom groups a year earlier, annual revenue for one- to four-bedroom homes moved by only around 1% or less. We would build an appraisal around the property’s current earning capacity, with improvements tied to its presentation, pricing and guest appeal.

Seasonality: build the income across the whole year

Melbourne’s headline events matter, but the annual result depends on the months between them. Across professionally managed entire homes, annual revenue averaged about $60,800, occupancy was 61% and the average daily rate was approximately $296. That broad mix includes large houses as well as apartments.

January delivered the strongest monthly revenue, at about $7,100. May was the quietest at around $3,800. Occupancy followed a different pattern: it peaked at 66% in December and recovered from about 55% in June to 63% in July and August.

For your annual budget, that late-winter recovery is useful. So is the size of the summer uplift. A single flat nightly rate would miss both the premium periods and the adjustments needed to attract guests when demand eases.

Availability matters as much as the advertised rate. If you keep the apartment for your own use, removing a January week may have a different income cost from blocking time in May. Set those dates before comparing a short-term estimate with a year-round lease.

Where the Melbourne opportunities differ

CBD, Southbank and Docklands: convenient city apartments

The central apartment markets had similar two-bedroom annual revenue estimates, from about $57,800 in the CBD to $59,400 in Docklands. Their appeal varies by address. Southern Cross access, the convention precinct, theatres, office locations and the walk to major venues can each influence the guests an apartment attracts.

For an investor, the building is part of the product. Check-in arrangements, lift access, permitted use of amenities, parking and the condition of common areas all shape the stay. An apartment with clear arrival instructions and a useful workspace can serve guests beyond the weekend leisure market.

Richmond, Fitzroy and Collingwood: a neighbourhood stay

These areas offer guests a different reason to book: a base near restaurants, shopping, friends and family, with access to the city and sporting precinct. Richmond’s two-bedroom estimate was about $57,900, while Fitzroy and Collingwood reached approximately $70,200 and $64,600.

Fitzroy and Collingwood also improved on their previous annual revenue estimates, by around 6% and 4%. Their smaller professional apartment samples make property selection particularly important. A spacious, distinctive apartment with outdoor space is a different proposition from a compact unit on a busy road.

St Kilda, South Melbourne and Carlton: match the home to its guests

St Kilda’s estimated annual two-bedroom apartment revenue was approximately $55,000, with 72% occupancy. Beach access, parking and proximity to tram routes are useful features to bring forward in a listing. Summer is an obvious opportunity; a comfortable home and a sensible winter rate help extend the trade.

South Melbourne reached about $52,900. Access to the market, the convention precinct and Albert Park can support different types of stay, depending on the address. In Carlton, where annual revenue was about $44,200, the focus should be the individual apartment’s location and suitability for visitors to the university, medical and inner-city precincts.

These figures measure income, not investment yield. When assessing a purchase, bring in the price, owners corporation fees and total running costs. A property with lower gross revenue can still make better use of the capital you invest.

Visitor demand and our Melbourne outlook

Melbourne has a substantial travel base to work with. Melbourne Airport handled almost 37 million passenger movements in the 2026 financial year, up 2.3%, including a record 12.26 million international movements. These are arrivals and departures, including residents, rather than a count of overnight visitors.

The latest monthly result was softer: August passenger traffic was 1.6% below a year earlier. The annual record supports confidence in Melbourne’s appeal, while the recent easing is a reason to keep revenue forecasts grounded in current bookings.

Our outlook is positive for well-chosen, well-run properties. The city’s sporting and cultural calendar creates regular pricing opportunities, while work trips, family visits and longer stays can help fill the spaces around them. The best prospects are homes with a clear reason for guests to choose them and a booking plan that works through winter.

Start with the home you have. A better bed, stronger photography, an improved living area or easier check-in may be more useful than an expensive renovation that guests barely notice.

Victoria’s short-stay levy and building rules

Victoria’s short-stay levy is 7.5% of the total booking fee for taxable stays of fewer than 28 consecutive days. The base includes cleaning charges and GST where applicable. Principal residences are generally excluded, and stays of 28 consecutive days or more fall outside the levy. For bookings through a liable platform, the platform pays the levy to the State Revenue Office; direct bookings can make the owner or tenant responsible.

Establish how the levy is handled in your pricing and payout before signing a management agreement. A separately collected guest charge and an amount absorbed from your revenue have different implications for owner income. The worked example above shows the latter.

For apartments, check the owners corporation rules early. Victorian owners corporations can ban short stays by special resolution, with an exception for principal residences. Also confirm the planning and local requirements for your address. Once eligibility is clear, you can concentrate on preparing the property and setting a launch date.

Turn the market comparison into a plan for your property

A useful appraisal should explain which homes your property competes with, its likely guest mix and how pricing changes through the year. It should also show the income after management and the remaining expenses, so you can compare it with a long-term lease on the same basis.

With MadeComfy’s Melbourne property management team, that discussion can cover presentation, listing photography, pricing, guest support and day-to-day operations. The purpose is to give your home a strong chance of earning its potential, while taking the ongoing work off your hands.

See what your Melbourne property could earn. Start with an instant income estimate, then work through the local comparisons and costs with our team.