Top Australian suburbs showing the highest rental yields in 2026

When it comes to investing in property, investors usually have one common goal in mind, which is to generate the most income or returns from the property they’ve purchased. In other words, they’re looking for good rental yield—an important metric that measures your return on investment while being a key indicator of cash-flow potential. If you’ve landed on this blog because you’re looking to invest in the highest rental yield Australia has to offer, you’re in the right place. In this guide, we’ll explain what rental yield is, how it’s measured, and round up 17 of the high rental yield suburbs Australia is set to watch in 2026.

Disclaimer: Rental yield figures are indicative only, based on publicly available third party data, and may vary depending on property type, lease terms, timing and market conditions*.

Key takeaways:

• Regional Australia leads on yield as mining and employment-driven suburbs dominate the list. Based on the latest market data, Tom Price (11.36%), Coolgardie (11.5%), and Pegs Creek (11.61%) are considered to be among the highest rental yield suburbs in Australia for 2026.
• High-yield opportunities can also be found across other states, with suburbs such as Dysart in Queensland (9.75%), Broken Hill in New South Wales (8.51%), Carlton in Victoria (8.91%), and Bellamack in the Northern Territory (9.61%) historically showing strong rental-return potential.
• Rental yields are trending downward nationally. Australia’s median gross rental yields have fallen from 4.92% (Q3 2025) to 4.69% (Q1 2026), with Darwin maintaining a relatively strong average rental yield of 7.2% for apartment units.
• Based on current publicly available data, high yields appear to be linked to employment opportunities and housing undersupply. Areas with strong job markets, limited new housing, and consistent tenant demand tend to deliver some of Australia’s strongest rental yield outcomes.
• While high rental yield in Australian suburbs may offer strong cash flow, investors should weigh other key aspects like vacancy risk, industry reliance, and long-term capital growth potential.

What is a rental yield and how it’s measured

Rental yield measures the annual rental income generated by a property as a percentage of its value or purchase price, and is commonly used an indicative benchmark for comparing rental income across properties. It helps determine how much return you’re earning before considering capital growth. It does not account for expenses, vacancies or capital growth and should be considered alongside other factors when assessing property performance.

How to calculate rental yield in Australia

It’s worth noting that there are two main types of rental yield. The first one is gross rental yield, which looks at total rental income before expenses. The second type is called net rental yield, which factors in costs such as maintenance, property management, insurance, and council rates (amongst other things). To calculate gross rental yield, divide annual rental income by the property value, then multiply by 100.

Annual rental income ÷ property value x 100 = gross rental yield

Based on the formula above, here’s an example: an investor who purchased a $600,000 property and earns $30,000 annually of rental income would have a gross rental yield of 5%.

Top 17 highest rental yield suburbs in Australia

If you’re exploring income-focused property in 2026, these suburbs are among those currently showing comparatively high reported rental yields based on the available data.

Tom Price, WA

At a reported rental yield of 11.36%, Tom Price has one of the highest rental yields Australia can expect to see in 2026. This is due to the Western Australia suburb’s role as a major mining hub in the Pilbara. Stable employment, employer-backed housing demand, and affordable entry prices relative to the local wages (according to publicly available historical data) may contribute to strong cash-flow outcomes, particularly for houses.

Coolgardie, WA

Just like Tom Price, Coolgardie’s high yield reported at 11.5% is supported by mining-related employment and limited rental stock. Furthermore, lower median prices combined with steady tenant demand may create favourable conditions for investors seeking stronger cash flow opportunities rather than long-term appreciation alone.

Pegs Creek, WA

Located near Karratha, Pegs Creek has been seeing consistent rental demand from resources sector workers, bringing its reportable rental yield to 11.61%. Besides that, strong wages and short-term leasing needs may help sustain elevated rental returns relative to property values.

Important note: Based on current data, Western Australia is currently leading with several suburbs offering some of the highest rental yields. You may discover more suburbs with strong yields here. The mining markets can also be subject to industry cycles, which may impact rental demand and yields over time.

Menzies, QLD

Menzies is expected to have one of the best rental yield in Queensland, Australia reported at 10.98% thanks to regional employment drivers as well as a tight housing supply. Apart from that, there appears to be high demand in this suburb as its affordability attracts renters tied to local industries.

Dysart, QLD

Dysart records a reported rental yield of 9.75%, largely driven by its position within Queensland’s Bowen Basin coal mining region. Strong employment in the resources sector, combined with relatively affordable property prices and ongoing rental demand from workers, may support solid income returns for property investors.

Coonamble, NSW

With a reported rental yield of 8%, Coonamble benefits from its role as an agricultural service centre in regional New South Wales. Relatively affordable property prices and steady rental demand from local workers and families contribute to favourable yield conditions, making it attractive to investors focused on income-generating regional properties.

Broken Hill, NSW

Broken Hill’s 8.51% reported rental yield is supported by its long-standing mining heritage and its status as a key regional centre in far western New South Wales. Relatively low entry prices and consistent rental demand from local residents help sustain strong yields compared to larger metropolitan markets*.

Note: The mining markets can be subject to industry cycles, which may impact rental demand and yields over time.

Carlton, VIC

Carlton’s close proximity to major universities including the University of Melbourne and RMIT University may be a contributing factor to why its yield sits strong at a reportable 8.91%. High student demand, a dense apartment market, and consistent turnover of renters may also contribute to strong yields relative to inner-city property values.

Melbourne, VIC

The CBD area of Melbourne boasts a reported rental yield of 8.37%, thanks to high demand for centrally located apartments. International students, young professionals, and short-term renters sustain occupancy levels, while high-density housing stock appear to help maintain comparatively attractive yields for investors.

Curtin, ACT

With a strategic location within Canberra and proximity to major government employment hubs, Curtin’s reported rental yield stands comfortably at 7.06%. Stable public sector jobs and consistent demand from professionals and families may also contribute to reliable rental income and relatively strong yields.

Lyons, ACT

Nearby Lyons offers a reported rental yield of 6.89%, benefiting from strong tenant demand linked to Canberra’s government and professional workforce. Its convenient access to employment centres, schools, and amenities supports consistent occupancy levels and steady rental returns for property investors.

Zeehan, TAS

Zeehan’s affordable housing market and small but steady demand from local workers in Tasmania’s west coast mining and tourism sectors are some of the contributing factors to its average reported rental yield of 7.67%. Furthermore, lower property prices may allow investors to generate comparatively strong yields despite the town’s modest population size.

Queenstown, TAS

Queenstown's strong reported rental yield of around 7.3% is influenced by its historic mining economy and growing tourism interest along Tasmania’s west coast. Relatively affordable housing and limited rental supply may contribute to ongoing tenant demand, based on available data.

Peterborough, SA

Peterborough offers a promising reportable rental yield of 7.85%, which appears to be driven not just by affordability, but also its role as a regional service town in South Australia. Besides that, comparatively lower property entry prices combined with stable rental demand from local residents may help investors achieve relatively strong yields compared with metropolitan areas.

Port Pirie West, SA

With stable employment linked to the town’s industrial and port-related activities, Port Pirie West is able to have rental yields averaging a reported 7.49%. Other contributing factors include affordable housing stock and ongoing demand from local workers, which could lead to stable occupancy levels and attractive rental income for investors.

Bellamack, NT

Bellamack is another suburb that boasts a high reportable rental yield of 9.61%, which, according to available data is supported by population growth in the Palmerston region near Darwin. Demand from government, defence, and construction sector workers, along with limited housing supply, may help sustain elevated rental returns.

Larapinta, NT

Larapinta achieves a reported rental yield of 8.06%, driven by strong demand for affordable housing within Alice Springs. Local employment in government services, tourism, and regional industries have shown to support consistent tenant demand and solid rental performance relative to property prices.

Australia’s current rental yield trends

Australia’s rental yields have trended slightly downward over recent quarters. According to Global Property Guide data, Australia’s national gross rental yield fell from 4.92% (Q3 2025) to 4.69% (Q1 2026). However, according to the available data, some capital cities continue to show comparatively higher rental yields, influenced by factors such as ongoing population growth, tight housing supply, and stable tenant demand in employment-driven markets. For example, Darwin is currently showing an overall average gross yield of 6.0%, with units performing well at 7.2%. These returns appear to be largely driven by Darwin's relative affordability combined with tight rental conditions and broad tenant demand across the market.

Stable opportunities can also be found across the other major capitals, though they vary significantly depending on the suburb and property type. In Melbourne, house yields typically range from 3.5% to 4.5% (often trending higher in outer growth corridors), while inner-city units are showing yields as high as ~7.4%. Despite recent capital growth compressing their overall percentages, both Perth and Brisbane are showing competitive rental yields supported by critically low vacancy rates. According to recent market data, Perth has recorded house yields around ~4.3%, with units pushing up to ~5.9%. Similarly, Brisbane is recording house yields between 3.5% and 4.5%, while its more affordable unit market is delivering yields of 5.0% to 5.5%. Canberra is showing gross yields ranging from approximately 4.0% to 5.5%, supported by its stable public sector workforce. Meanwhile, average house yields in Sydney remain the lowest among the capitals at a city-wide average of around 2.6%. However, performance varies dramatically by corridor and property type; while Sydney houses inside the metro areas enerally struggle to clear 3.5%, Western Sydney units are recording much stronger gross yields between 5.8% and 6.6%.

What drives strong rental yields in certain areas

Here are four key factors that may positively influence an area’s rental yield based on current market conditions over time:

Employment hubs and tenant demand

Areas anchored by mining, healthcare, defence, or logistics hubs often show comparatively higher reported rental yields based on available data which may be due to stable employment opportunities and consistent tenant inflows. In some cases, workers tend to prioritise proximity and shorter work commutes over ownership, which can help support rental demand, even when property prices fluctuate.

Infrastructure announcements and population shifts

New infrastructure and population inflows may lift rental demand faster than supply adjusts. This includes improvements such as transport upgrades, industrial expansion, and regional migration trends, which can influence rental condition, particularly in emerging regional centres.

Housing supply constraints and vacancy rates

Suburbs with limited land availability or slow construction pipelines often experience tighter vacancy rates. This imbalance may place upward pressure on rents, directly improving yield performance relative to property values. Over time, sustained undersupply may also contribute to stronger tenant competition, reducing leasing downtime and driving steadier rental income.

Property type trends (apartments vs houses vs townhomes)

Apartments can record higher rental yields compared to landed homes because they are cheaper to purchase and maintain, on top of having high demand especially in urban areas. Houses, on the other hand, which are more expensive to buy and maintain, may attract longer term tenants, contributing to lower turnover. As for townhouses, they balance both affordability and space, which makes them appealing to younger families or downsizers. However, rental yield outcomes vary and depend on local market conditions and tenant preferences.

Considerations when evaluating high-yield areas

While some suburbs may have significantly higher rental yields than others, this does not guarantee investment performance or returns. That’s why it’s better not to focus on yield alone, but to take into account other aspects, like assessing vacancy risk, price volatility, tenant dependency on single industries, and long-term livability. It’s also important to understand the difference between rental yield vs capital growth as higher yields may suit short-term income goals, while capital growth is often key to building long-term wealth.

Regional vs metro: which areas typically show higher yields?

Generally, regional areas such as small towns and rural countryside locations have historically recorded higher rental yields. Besides being more affordable to purchase, it also has great potential when it comes to pulling stronger rental yields and demand that are tied to specific industries. Capital cities or metro markets that have higher population density and higher cost of living, however, often record lower yields but stronger long-term growth. As for which is better for investing, it really depends. Finding the right balance comes down to your broader real estate investment strategies in Australia and understanding how different market dynamics align with your goals.

Conclusion

Australia’s rental market in 2026 continues to continues to present income-focused opportunities, with regional and employment-driven suburbs delivering some of the highest rental yields in Australia. As highlighted in this article, high-yield opportunities can be found across many regions in Australia ranging from Western Australia to Queensland, New South Wales, Victoria, and other states nationwide. Apart from having strong cash-flow potential, the market is further supported by rising rent prices, low vacancy rates, and tight supply. That said, if steady, sustainable returns are something you’re aiming to achieve, remember to look beyond just yield. By balancing rental income with factors like market stability, tenant demand, and long-term growth prospects, investors can make more informed decisions aligned with both short- and long-term property goals.

If you are keen to explore further, Frasers Property offers a diverse range of residential options across different states. Or if you need support managing your properties, let our team of experts take care of everything for you.

*Disclaimer: The information contained on this webpage is provided by Frasers Property Australia in good faith and is believed to be accurate at the time of publication. This content is of a general nature only and does not take into account your personal objectives, financial or taxation situation, or needs. It does not constitute financial, taxation, legal or other professional advice and should not be relied upon as such.

Any opinions, estimates, forecasts, statistics or conclusions are indicative only, may change over time and are based on publicly available information and third party sources. Frasers Property Australia makes no representation or warranty, express or implied, as to the accuracy, completeness or currency of information obtained from external sources or linked websites.

Information relating to grants, schemes and other costs is provided for general guidance only and may be subject to change. Before acting on any information contained in this webpage, you should consider its appropriateness for your circumstances and seek independent professional advice where necessary.