Rental Yield Summary
| Property Type | Median Price | Weekly Rent | Gross Yield | Net Yield (est) |
|---|---|---|---|---|
| Houses | $565,039 | $435/wk | 4.0% | 2.2% |
| Units | $241,198 | $211/wk | 4.6% | 3.1% |
Gross vs Net: The Real Numbers
Gross yield is what most headlines quote. Net yield is what you actually keep after costs.
Annual costs that eat your yield:
- Council rates: $2460/year
- Insurance (landlord): $1,200-1,800/year
- Property management (7-8%): $1,696/year
- Maintenance allowance (1%): $5,650/year
- Vacancy (2-4 weeks/year): $1,305/year
Net annual income (house): $10,468 Net yield: 2.2%
Vacancy Rate
Current vacancy: 2.1%
Tight market – tenants compete for properties. Expect minimal vacancy between tenants.
How Melbourne Summer 2026 Guide Compares
| Suburb | House Yield | Unit Yield |
|---|---|---|
| Melbourne Summer 2026 Guide | 4.0% | 4.6% |
| Melbourne average | 3.2% | 4.1% |
| Box Hill | 2.8% | 4.0% |
Solid middle-ring returns that balance yield with capital growth potential.
Cash Flow Analysis
At current rates (6.2% variable), interest-only on 80% LVR:
- Annual interest: $28,025
- Annual rent: $22,620
- Cash flow position: Negative gearing of -${int(med_h * 0.8 * 0.062 - rent_h * 52 + med_h * 0.01 + 2000):,}/year (tax deductible)
For full investment analysis, see our Melbourne Summer 2026 Guide investment guide.
Yield calculations based on REIV median prices and Domain/realestate.com.au rental listings for Q1 2026.
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