Guide
Rental yields by city 2026: houses and units in every capital
Gross rental yields for houses and units in each capital city, what drives the gap between cities, and why a high yield isn't the whole story.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Darwin has the highest gross house yield of the capitals, about 6.0%, and Sydney the lowest, about 3.0% (Cotality, September 2026). Unit yields are higher than house yields in every capital.
Rental yields in every capital
| City | House yield | Unit yield | Median house value |
|---|---|---|---|
| Darwin | 6.0% | 7.5% | $747,252 |
| Hobart | 4.3% | 4.8% | $790,406 |
| Canberra | 4.0% | 5.5% | $1,006,269 |
| Perth | 3.9% | 5.2% | $1,017,734 |
| Melbourne | 3.5% | 5.2% | $915,119 |
| Adelaide | 3.5% | 4.5% | $990,531 |
| Brisbane | 3.4% | 4.2% | $1,146,078 |
| Sydney | 3.0% | 4.4% | $1,466,060 |
Why yields differ between cities
Yield is rent divided by price, so it falls when prices rise faster than rents. Sydney and Melbourne have the highest prices and the lowest yields. Darwin and Hobart have lower prices relative to rents, so yields are higher, but their markets are smaller and can be more volatile.
How to use yield when choosing a market
- Use gross yield to compare cities, then work out net yield for the property you're considering.
- Weigh yield against growth: high-yield markets have often grown more slowly over the long run.
- Check vacancy rates, which tell you how easy it is to find a tenant.
Work out a property’s gross and net yield with our rental yield calculator, compare vacancy rates by city, and see what counts as a good rental yield.
Sources
Cotality’s gross rental yields for each capital, September 2026. General information only, not financial advice.
Cite this page: Rising Returns, “Rental Yields by City 2026: Houses and Units Compared”, updated 6 November 2026, https://risingreturns.com.au/rental-yields-by-city/
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Book a free discovery callRental yields by city: common questions
Which capital city has the highest rental yield?
Darwin, with gross house yields of about 6.0% and unit yields of about 7.5% in September 2026. Sydney has the lowest house yield, about 3.0%.
Why are unit yields higher than house yields?
Units cost less but rent for a smaller discount, so the rent is a bigger share of the price. Houses usually hold more land, which tends to drive long-term growth, so investors often trade some yield for growth.
What is a good rental yield in Australia?
As a rough guide, 4% or more gross is solid in most capitals for a house, and 5% or more for a unit, but it depends on the city. A yield well above the local average can be a sign of higher risk, such as a small town or weak demand.
What's the difference between gross and net yield?
Gross yield is a year's rent divided by the price. Net yield takes off costs such as management, insurance, rates, strata and maintenance, and is usually 1 to 2 percentage points lower.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.