High rental yields can increase an investor's chances of having a positively geared property. This means the property generates more income (i.e. rent) each year than it costs in interest payments and other expenses. According to the data, these suburbs are where you can expect to find the Australian properties with the highest rental yields at the moment.

How important are rental yields to property investors?

For investors, rental yield is a useful way to assess annual income, but there are plenty of other things to take into account as well, like vacancy rates, planned investment and other factors that could suggest strong capital gains.

Simon Pressley of Propertyology says basing property investments primarily on rental yields is a "flawed strategy".

"At the end of the day, a few thousand dollars of income per year is nowhere near enough to retire on," Mr Pressley told Savings.com.au.

"But a property that produces strong capital growth means hundreds of thousands of dollars' equity, enabling the investor to repeat the process, plus the option of converting equity into cash during the retirement years."

He said the most important consideration should be selecting an area with good economic fundamentals as this is what drives capital growth.

"The next most important priority is buying a conventional asset - a standard house - in a central part of town. When it comes to sell, the conventional nature will attract a larger resale audience than other assets," Mr Pressley said.

"Apartments produce higher rental yields than a conventional house in the same location, but our studies confirm that investing in asset types other than detached houses is surrendering half, or more, of your capital growth potential."

What gives a suburb a strong rental yield?

Rental yield is how much income a property generates relative to its value. It's calculated by dividing the annual rental income a property generates by its market value.

If the value of a property increases dramatically but the rental yield stays the same, the rental yield decreases. This doesn't mean the property is generating any less income, just that the income is smaller relative to the property value.

Rental yields tend to be higher in areas where the demand for rent is higher than the demand for owner-occupied property.

For example, in January 2025, six of the top ten suburbs by rental yield for houses were in rural Western Australia. If you've heard of areas like the Coolgardie or Pilbara regions, it was likely in relation to mining. Pilbara sits on top of one of the biggest iron ore deposits in the world, while towns like Kambalda in Coolgardie are also mining hotspots for minerals like gold and nickel.

Demand for property can therefore be more transient, as miners come and go. Other mining centres like Mount Isa in Queensland feature prominently in both lists.

The vast majority of the suburbs in the top 100 lists are outside of the capital cities of the respective states. In the list for houses there isn't a single suburb within the Statistical Division of any of the eight capital cities.

Perhaps unsurprisingly, the capitals fare a little better for units. There were 17 suburbs from Darwin, 12 from Perth, six from Melbourne, two from Brisbane and one each from Adelaide and Canberra - but that still leaves more than 50% of the top suburbs for rental yield outside of the major cities.

Australia rental yields in 2025

Rental yields increase when the cost of renting becomes greater relative to property values. Here's how we were sitting as of January 2025:

State Area Property Type Median Price Weekly Median Advertised Rent Gross Rental Yield
ACT Metro Houses $937,500 $650 3.6%
ACT Metro Units $593,000 $570 5.0%
NSW Metro Houses $1,390,000 $750 2.7%
NSW Metro Units $790,000 $700 4.6%
NT Metro Houses $560,000 $650 6.0%
NT Metro Units $360,000 $540 7.7%
QLD Metro Houses $900,000 $620 3.7%
QLD Metro Units $659,728 $600 5.0%
SA Metro Houses $842,500 $590 3.8%
SA Metro Units $590,500 $520 4.8%
TAS Metro Houses $695,000 $550 4.1%
TAS Metro Units $548,750 $475 4.7%
VIC Metro Houses $830,000 $575 3.5%
VIC Metro Units $598,400 $550 4.7%
WA Metro Houses $780,000 $650 4.5%
WA Metro Units $550,000 $620 6.2%
NSW Country Houses $750,000 $565 3.9%
NSW Country Units $635,000 $490 4.0%
NT Country Houses $442,500 $550 6.7%
NT Country Units $275,000 $420 7.7%
QLD Country Houses $690,000 $620 4.9%
QLD Country Units $640,000 $560 4.7%
SA Country Houses $477,500 $415 4.8%
SA Country Units $390,000 $300 4.8%
TAS Country Houses $549,000 $450 4.4%
TAS Country Units $430,000 $390 4.7%
VIC Country Houses $550,000 $475 4.5%
VIC Country Units $415,000 $395 4.9%
WA Country Houses $535,000 $620 6.6%
WA Country Units $360,000 $580 8.5%

Source: CoreLogic. Data reported to the period ending January 2025. Median values account for sales transactions over three months.

After a record breaking period of rental growth, things appear to be easing up at the beginning of 2025. The Domain Rent Report for the March 2025 quarter found although rents remain at record highs, growth through the year was the slowest since 2021.

"Increasing supply is slowing price growth and while it's still not enough to fully meet demand we can see that it's helping to rebalance some of the tightest rental markets," Domain Head of Research Dr Nicola Powell said.

House price growth also slowed around the turn of the year, with a small downturn in the early months of 2025. As of March though, the CoreLogic Home Value Index had turned around, once again taking the national median dwelling price to all time highs.

The latest data on rental yields (up to January) suggests the highest rental yields in Australia are to be found in regional Western Australia and the Northern Territory. The average house in country NT has a rental yield of 6.7%, while investors could expect a 8.5% annual return on units in rural WA.

For cities, Darwin had the highest average yield for both houses (6.0%) and units (7.7%).

Read more:

Interested in an investment property? Here are some of the top options in Australia at the moment

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
6.28% p.a.
$2,978
Principal & Interest
Variable
$0
$530
90%
  • Investor
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  • Discounted interest rate for 5 years for homes with an eligible solar system
  • Available for refinance or purchase
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Disclosure
5.99% p.a.
6.01% p.a.
$2,995
Principal & Interest
Variable
$0
$250
60%
  • Investor
  • Variable
  • Principal & Interest
  • 40% Min Deposit
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  • Easy application. Fast approval. No annual fee.
  • Unlimited additional repayments free of charge.
  • Redraw freely - Access your additional payments.
Disclosure
6.04% p.a.
5.95% p.a.
$3,011
Principal & Interest
Variable
$0
$0
80%
  • 100% owned by Commbank
  • Investor
  • Variable
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  • 20% Min Deposit
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  • A low-rate variable investment home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
6.09% p.a.
6.13% p.a.
$3,027
Principal & Interest
Variable
$0
$530
90%
  • Investor
  • Variable
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  • 10% Min Deposit
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  • Minimum 10% deposit needed to qualify. Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$350
60%
  • Investor
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  • 40% Min Deposit
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  • Start your home loan journey online, with expert assistance when you need it
Disclosure
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Important Information and Comparison Rate Warning

Top 100 rental yield suburbs in Australia for houses

Rank Suburb (Postcode) State LGA Median Price Weekly Median Rent Gross Rental Yield
1st Lightning Ridge (2834) NSW Walgett $80,500 $300 19.4%
2nd Coolgardie (6429) WA Coolgardie $129,000 $400 16.1%
3rd Tom Price (6751) WA Ashburton $685,000 $1,740 13.2%
4th Kambalda East (6442) WA Coolgardie $150,000 $360 12.5%
5th Collinsville (4804) QLD Whitsunday $169,000 $380 11.7%
6th Kambalda West (6442) WA Coolgardie $178,500 $380 11.1%
7th Millars Well (6714) WA Karratha $524,000 $1,100 10.9%
8th Pioneer (4825) QLD Mount Isa $187,500 $390 10.8%
9th South Boulder (6432) WA Kalgoorlie-Boulder $235,500 $485 10.70%
10th The Gap (4825) QLD Mount Isa $215,000 $440 10.6%
11th Port Hedland (6721) WA Port Hedland $739,000 $1,500 10.60%
12th South Hedland (6722) WA Port Hedland $468,500 $950 10.50%
13th Nickol (6714) WA Karratha $594,500 $1,200 10.50%
14th Baynton (6714) WA Karratha $710,000 $1,400 10.30%
15th Pegs Creek (6714) WA Karratha $510,000 $1,000 10.20%
16th Newman (6753) WA East Pilbara $333,500 $650 10.10%
17th Port Pirie West (5540) SA Port Pirie $180,000 $350 10.10%
18th Dareton (2717) NSW Wentworth $180,000 $345 10.00%
19th Dysart (4745) QLD Isaac $210,000 $400 9.90%
20th Boulder (6432) WA Kalgoorlie-Boulder $289,000 $550 9.90%
21st Moura (4718) QLD Banana $204,000 $385 9.80%
22nd Parkside (4825) QLD Mount Isa $262,500 $480 9.50%
23rd Bulgarra (6714) WA Karratha $520,000 $950 9.50%
24th Sunset (4825) QLD Mount Isa $256,500 $465 9.40%
25th Kalgoorlie (6430) WA Kalgoorlie-Boulder $332,750 $600 9.40%
26th Wandoan (4419) QLD Western Downs $200,000 $360 9.40%
27th Menzies (4825) QLD Mount Isa $228,500 $410 9.30%
28th Moranbah (4744) QLD Isaac $364,500 $650 9.30%
29th Happy Valley (4825) QLD Mount Isa $273,500 $485 9.20%
30th Broken Hill (2880) NSW Broken Hill $195,000 $345 9.20%
31st Merredin (6415) WA Merredin $215,000 $380 9.20%
32nd Derby (6728) WA Derby-West Kimberley $245,000 $430 9.10%
33rd Blackwater (4717) QLD Central Highlands (Qld) $240,000 $418 9.00%
34th Queenstown (7467) TAS West Coast $174,000 $300 9.00%
35th Tennant Creek (0860) NT Barkly $263,500 $450 8.90%
36th Djugun (6725) WA Broome $710,000 $1,200 8.80%
37th Charleville (4470) QLD Murweh $175,000 $295 8.80%
38th Ravensthorpe (6346) WA Ravensthorpe $220,000 $370 8.70%
39th Piccadilly (6430) WA Kalgoorlie-Boulder $389,500 $650 8.70%
40th Katherine East (0850) NT Katherine $330,000 $550 8.70%
41st West Lamington (6430) WA Kalgoorlie-Boulder $394,500 $650 8.60%
42nd Townview (4825) QLD Mount Isa $267,500 $440 8.60%
43rd Peterborough (5422) SA Peterborough $180,000 $295 8.50%
44th Mount Morgan (4714) QLD Rockhampton $245,000 $400 8.50%
45th Healy (4825) QLD Mount Isa $370,000 $600 8.40%
46th South Kalgoorlie (6430) WA Kalgoorlie-Boulder $370,000 $595 8.40%
47th Warracknabeal (3393) VIC Yarriambiack $197,000 $315 8.30%
48th Zeehan (7469) TAS West Coast $195,000 $310 8.30%
49th Winston (4825) QLD Mount Isa $252,000 $400 8.30%
50th Katherine South (0850) NT Katherine $280,000 $443 8.20%
51st Lamington (6430) WA Kalgoorlie-Boulder $412,500 $650 8.20%
52nd Solomontown (5540) SA Port Pirie $242,000 $380 8.20%
53rd Katanning (6317) WA Katanning $261,250 $410 8.20%
54th Karloo (6530) WA Greater Geraldton $278,000 $430 8.00%
55th Clermont (4721) QLD Isaac $260,000 $400 8.00%
56th Narrogin (6312) WA Narrogin $262,000 $400 7.90%
57th South Lismore (2480) NSW Lismore $325,000 $495 7.90%
58th Hannans (6430) WA Kalgoorlie-Boulder $492,500 $750 7.90%
59th Depot Hill (4700) QLD Rockhampton $260,500 $395 7.90%
60th Somerville (6430) WA Kalgoorlie-Boulder $529,000 $800 7.90%
61st Jurien Bay (6516) WA Dandaragan $268,000 $400 7.80%
62nd Coonamble (2829) NSW Coonamble $190,000 $283 7.70%
63rd Bilingurr (6725) WA Broome $740,500 $1,100 7.70%
64th Hopetoun (6348) WA Ravensthorpe $305,500 $450 7.70%
65th East Bairnsdale (3875) VIC East Gippsland $340,000 $500 7.60%
66th Cable Beach (6726) WA Broome $680,000 $1,000 7.60%
67th Charters Towers City (4820) QLD Charters Towers $249,000 $365 7.60%
68th Soldiers Hill (4825) QLD Mount Isa $327,500 $480 7.60%
69th St George (4487) QLD Balonne $270,000 $390 7.50%
70th Rangeway (6530) WA Greater Geraldton $280,000 $400 7.40%
71st Kununurra (6743) WA Wyndham-East Kimberley $455,500 $650 7.40%
72nd Cobar (2835) NSW Cobar $235,500 $335 7.40%
73rd East Innisfail (4860) QLD Cassowary Coast $297,500 $420 7.30%
74th Longreach (4730) QLD Longreach $237,500 $335 7.30%
75th Dampier (6713) WA Karratha $780,000 $1,100 7.30%
76th Ingham (4850) QLD Hinchinbrook $257,000 $360 7.30%
77th Capella (4723) QLD Central Highlands (Qld) $300,000 $420 7.30%
78th Richmond Hill (4820) QLD Charters Towers $282,500 $393 7.20%
79th Ceduna (5690) SA Ceduna $260,000 $360 7.20%
80th Roxby Downs (5725) SA Roxby Downs $275,000 $380 7.20%
81st Moree (2400) NSW Moree Plains $290,000 $400 7.20%
82nd Emerald (4720) QLD Central Highlands (Qld) $399,000 $550 7.20%
83rd Port Augusta (5700) SA Port Augusta $240,000 $330 7.20%
84th Whyalla Norrie (5608) SA Whyalla $219,500 $300 7.10%
85th Cardwell (4849) QLD Cassowary Coast $377,500 $515 7.10%
86th Dongara (6525) WA Irwin $330,000 $450 7.10%
87th Ouyen (3490) VIC Mildura $235,000 $320 7.10%
88th The Gap (0870) NT Alice Springs $360,000 $490 7.10%
89th Whyalla Stuart (5608) SA Whyalla $206,000 $280 7.10%
90th Peak Hill (2869) NSW Parkes $222,000 $300 7.00%
91st Collie (6225) WA Collie $370,000 $500 7.00%
92nd Dimboola (3414) VIC Hindmarsh $260,000 $350 7.00%
93rd Northam (6401) WA Northam $350,000 $470 7.00%
94th Boggabri (2382) NSW Narrabri $280,000 $375 7.00%
95th Manjimup (6258) WA Manjimup $375,000 $500 6.90%
96th Gray (0830) NT Palmerston $410,000 $545 6.90%
97th Gillen (0870) NT Alice Springs $431,250 $570 6.90%
98th Mornington (4825) QLD Mount Isa $303,500 $400 6.90%
99th Bakers Creek (4740) QLD Mackay $572,250 $750 6.80%
100th Araluen (870) NT Alice Springs $545,000 $710 6.80%

Source: CoreLogic. Data reported to the period ending January 2025. Median values account for sales transactions over 12 months.

Top 100 rental yield suburbs in Australia for units

Rank Suburb (Postcode) State LGA Median Price Weekly Median Rent Gross Rental Yield
1st Bucasia (4750) QLD Mackay $130,000 $380 15.2%
2nd Baynton (6714) WA Karratha $515,000 $1,325 13.40%
3rd South Hedland (6722) WA Port Hedland $290,000 $700 12.60%
4th Pegs Creek (6714) WA Karratha $410,000 $975 12.40%
5th Cable Beach (6726) WA Broome $330,000 $750 11.80%
6th Moranbah (4744) QLD Isaac $330,000 $750 11.80%
7th Roxby Downs (5725) SA Roxby Downs $135,000 $300 11.60%
8th Brassall (4305) QLD Ipswich $205,000 $450 11.40%
9th Port Hedland (6721) WA Port Hedland $378,561 $800 11.00%
10th Broome (6725) WA Broome $332,500 $700 10.90%
11th Bulgarra (6714) WA Karratha $293,500 $615 10.90%
12th Somerville (6430) WA Kalgoorlie-Boulder $287,500 $600 10.90%
13th Boulder (6432) WA Kalgoorlie-Boulder $230,000 $475 10.70%
14th Newman (6753) WA East Pilbara $225,000 $450 10.40%
15th Driver (0830) NT Palmerston $240,000 $460 10.00%
16th Karama (0812) NT Darwin $260,000 $468 9.40%
17th Piccadilly (6430) WA Kalgoorlie-Boulder $282,500 $500 9.20%
18th Beresford (6530) WA Greater Geraldton $255,000 $450 9.20%
19th Whyalla Playford (5600) SA Whyalla $160,000 $280 9.10%
20th Kalgoorlie (6430) WA Kalgoorlie-Boulder $300,000 $520 9.00%
21st Bakewell (0832) NT Palmerston $282,500 $480 8.80%
22nd Sadadeen (0870) NT Alice Springs $265,000 $450 8.80%
23rd Larapinta (0875) NT Alice Springs $270,000 $450 8.70%
24th Rosebery (0832) NT Palmerston $319,000 $520 8.50%
25th Djugun (6725) WA Broome $429,500 $700 8.50%
26th Gray (0830) NT Palmerston $270,000 $440 8.50%
27th Melbourne (3000) VIC Melbourne $400,000 $650 8.50%
28th Cardwell (4849) QLD Cassowary Coast $230,000 $370 8.40%
29th Notting Hill (3168) VIC Monash $342,500 $550 8.40%
30th Cranbrook (4814) QLD Townsville $238,000 $380 8.30%
31st Deagon (4017) QLD Brisbane $240,000 $380 8.20%
32nd Heatherton (3202) VIC Kingston (Vic.) $319,000 $505 8.20%
33rd Bellamack (0832) NT Palmerston $350,000 $550 8.20%
34th Emerald (4720) QLD Central Highlands (Qld) $256,500 $400 8.10%
35th Marrara (0812) NT Darwin $315,000 $490 8.10%
36th Northam (6401) WA Northam $210,000 $325 8.00%
37th Withers (6230) WA Bunbury $240,000 $370 8.00%
38th Edmonton (4869) QLD Cairns $279,000 $430 8.00%
39th Leanyer (0812) NT Darwin $331,000 $510 8.00%
40th Southside (4570) QLD Gympie $234,000 $360 8.00%
41st Millner (0810) NT Darwin $312,500 $480 8.00%
42nd Manunda (4870) QLD Cairns $250,000 $380 7.90%
43rd Kununurra (6743) WA Wyndham-East Kimberley $360,000 $538 7.80%
44th Darwin City (0800) NT Darwin $410,000 $600 7.60%
45th Jubilee Pocket (4802) QLD Whitsunday $342,500 $500 7.60%
46th Gillen (0870) NT Alice Springs $275,000 $400 7.60%
47th Whyalla (5600) SA Whyalla $172,000 $250 7.60%
48th Douglas (4814) QLD Townsville $317,500 $460 7.50%
49th Johnston (0832) NT Palmerston $360,000 $520 7.50%
50th Thornlie (6108) WA Gosnells $381,500 $550 7.50%
51st Wongaling Beach (4852) QLD Cassowary Coast $250,000 $360 7.50%
52nd Travancore (3032) VIC Moonee Valley $362,000 $520 7.50%
53rd Bayswater (6053) WA Bayswater $418,000 $600 7.50%
54th South Kalgoorlie (6430) WA Kalgoorlie-Boulder $350,000 $500 7.40%
55th Woolner (0820) NT Darwin $420,000 $600 7.40%
56th Erskine (6210) WA Mandurah $367,500 $520 7.40%
57th Coolalinga (0839) NT Litchfield $299,000 $423 7.30%
58th West Mackay (4740) QLD Mackay $340,000 $480 7.30%
59th Glendalough (6016) WA Stirling $390,000 $550 7.30%
60th Freshwater (4870) QLD Cairns $377,000 $530 7.30%
61st South Gladstone (4680) QLD Gladstone $235,000 $330 7.30%
62nd New Auckland (4680) QLD Gladstone $261,250 $365 7.30%
63rd Hermit Park (4812) QLD Townsville $265,000 $370 7.30%
64th The Gap (0870) NT Alice Springs $308,000 $430 7.30%
65th Chinchilla (4413) QLD Western Downs $270,000 $375 7.20%
66th Perth (6000) WA Perth $490,000 $678 7.20%
67th Orelia (6167) WA Kwinana $306,000 $420 7.10%
68th Stuart Park (0820) NT Darwin $420,000 $575 7.10%
69th Mackay (4740) QLD Mackay $330,000 $450 7.10%
70th Wembley (6014) WA Cambridge $385,000 $525 7.10%
71st Holloways Beach (4878) QLD Cairns $330,200 $450 7.10%
72nd East Perth (6004) WA Perth $515,000 $700 7.10%
73rd Carlton (3053) VIC Melbourne $405,000 $550 7.10%
74th Hawker (2614) ACT Unincorporated ACT $370,000 $500 7.00%
75th Southbank (3006) VIC Melbourne $500,000 $675 7.00%
76th Parap (0820) NT Darwin $422,500 $570 7.00%
77th Cannonvale (4802) QLD Whitsunday $379,000 $510 7.00%
78th East Mackay (4740) QLD Mackay $320,000 $430 7.00%
79th Edge Hill (4870) QLD Cairns $350,000 $470 7.00%
80th Cairns North (4870) QLD Cairns $357,500 $480 7.00%
81st Bunbury (6230) WA Bunbury $455,000 $610 7.00%
82nd Nightcliff (0810) NT Darwin $358,500 $480 7.00%
83rd Bowen (4805) QLD Whitsunday $325,000 $435 7.00%
84th Northbridge (6003) WA Perth $505,000 $675 7.00%
85th Sorrento (6020) WA Joondalup $500,000 $668 6.90%
86th North Mackay (4740) QLD Mackay $315,000 $420 6.90%
87th Manoora (4870) QLD Cairns $315,000 $420 6.90%
88th Redcliffe (6104) WA Belmont $450,000 $600 6.90%
89th East Cannington (6107) WA Canning $450,000 $600 6.90%
90th Port Douglas (4877) QLD Douglas $407,500 $540 6.90%
91st Coconut Grove (0810) NT Darwin $362,500 $480 6.90%
92nd Idalia (4811) QLD Townsville $340,000 $450 6.90%
93rd Keswick (5035) SA West Torrens $340,000 $450 6.90%
94th Victoria Park (6100) WA Victoria Park $450,000 $595 6.90%
95th Condon (4815) QLD Townsville $295,000 $390 6.90%
96th South Mackay (4740) QLD Mackay $342,000 $450 6.80%
97th Pimlico (4812) QLD Townsville $273,750 $360 6.80%
98th East Victoria Park (6101) WA Victoria Park $495,250 $650 6.80%
99th Brinkin (0810) NT Darwin $351,000 $460 6.80%
100th Australind (6233) WA Harvey $429,000 $560 6.80%

Source: CoreLogic. Data reported to the period ending January 2025. Median values account for sales transactions over 12 months.

First published on January 2022

Image by Jorge Láscar on Flickr





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