Best Rental Yield in Australia: Suburbs With the Highest Yields (2026)

Australia's highest yields come from regional suburbs delivering 7–12% gross returns in 2026, where property prices remain affordable and tenant demand is strong. If you're a property investor chasing cash flow over capital growth, these high rental yield suburbs deserve a serious look.

But highest yields alone don't make a good investment. You need to weigh vacancy rates, population trends, and long-term property values before committing. Here's a state-by-state breakdown of where to find the highest yields right now — and what to watch out for.

What Makes a Suburb Deliver High Rental Yield?

Rental yield measures how much rental income a property generates relative to its purchase price. The formula for gross rental yield is straightforward:

Gross Yield = (Annual Rent ÷ Property Value) × 100

A suburb typically produces the highest yields when three things align:

• Low median house prices — the entry point is affordable, often $150,000–$400,000
• Strong tenant demand — driven by mining, agriculture, defence, or healthcare employment
• Consistent rental demand — low vacancy rates (under 2%) and limited new housing supply
• Interest rate environment — when interest rates rise, property prices often soften in regional areas before rents adjust, temporarily pushing gross yields higher. The current rate cycle has widened the yield gap between regional and capital city suburbs
• Limited new supply — suburbs with restricted land release or planning constraints tend to maintain higher yields because the rental supply can't keep pace with demand
• Proximity to essential services — properties near essential infrastructure like universities, hospitals, and transport hubs command higher rents because they attract a broader tenant pool, supporting higher and more stable weekly rents
• Energy efficiency — energy-efficient properties featuring green features like solar panels tend to attract premium rents and lower vacancy rates, boosting net yields for investors

Capital city houses usually show lower yields of 3% to 4% compared to regional areas due to high property prices compressing returns. Property investors looking for the best rental yield in Australia generally find the highest yields in regional and outer suburban areas rather than capital city markets. Sydney's high median price pushes gross yields below 3%, while a regional town with a $200,000 median price and $350/week rent delivers the highest yields at 9.1%. High rental yields are often found in regional and mining towns where transient workforces drive rental demand above owner-occupier demand, keeping vacancy rates low and weekly rents high.

The gap between regional yields and capital city yields has widened significantly since 2020. Capital city median house prices grew faster than rents, compressing yields, while regional areas saw rent growth outpace price growth — creating the highest yields Australia has seen in a decade.

You can run these numbers for any investment property using the PropBoss Rental Yield Calculator. It's one of the easiest ways to compare high rental returns across suburbs in any capital city or regional market.

Highest Rental Yield Suburbs in New South Wales

New South Wales offers some of the highest rental returns outside Sydney, particularly in mining and agricultural regions where property investment dollars stretch further.

Best Investment Suburbs for Rental Yield in NSW

Broken Hill consistently delivers the highest yields in New South Wales. The mining and tourism economy supports consistent demand, and the median house price remains well under $200,000. Property investors should note that Broken Hill's population has been stable rather than growing — the highest yields here compensate for limited growth prospects.

Nyngan and Muswellbrook also produce strong rental returns for investment property buyers. These regional NSW suburbs benefit from agriculture and mining employment that creates reliable tenant demand, keeping weekly rents and rental returns well above the state average. Regional NSW houses offer some of the country's best yields for investors seeking income from affordable houses.

Highest Rental Yield Suburbs in Victoria

Victoria's high rental yield suburbs are concentrated in the Latrobe Valley and regional centres where median prices are a fraction of Melbourne's.

High Rental Yield Suburbs Melbourne and Regional VIC

The Latrobe Valley suburbs — Morwell and Moe — produce the highest yields in Victoria. The region's transition from coal to renewable energy and health services is creating diversified employment that supports consistent tenant demand. The median house price here is under $300,000, which is why rental returns are so strong relative to the rest of the state.

For property investors wanting exposure to Victoria without Melbourne's compressed returns, Shepparton and Wangaratta offer a balance of strong rental returns and good capital growth backed by steady population increases in regional hubs. These regional Victoria investment suburbs consistently rank among the highest yields outside metro Melbourne, with houses delivering yields that Melbourne suburbs can't match. Weekly rents for houses in regional Victoria have grown steadily while the market remains affordable for investors.

Highest Rental Yield Suburbs in Queensland

Queensland delivers some of the best rental yield locations in Australia, spanning mining towns, agricultural centres, and affordable coastal pockets.

Best Suburbs for High Rental Returns in QLD

Mount Isa consistently produces the highest yields in Queensland — and often the highest yields in all of Australia. Mining drives tenant demand, and prices remain affordable. The trade-off is remoteness and cyclicality tied to commodity prices.

Emerald and Charters Towers also deliver the highest yields you'll find outside mining towns, with rental returns well above 8%. These investment suburbs benefit from agricultural and mining employment that maintains consistent demand through economic cycles. Gladstone and Rockhampton provide a middle ground with higher property prices but more diversified economies and solid rental returns.

Highest Rental Yield Suburbs in Western Australia

Western Australia's mining-driven economy creates pockets of extraordinary rental yield, particularly in the Pilbara and Goldfields regions.

High Rental Yield Suburbs Perth and Regional WA

Pegs Creek in Western Australia recorded the highest rental yield in Australia at 12.61% as of late 2025, narrowly ahead of South Hedland. Both Pilbara towns benefit from the same dynamic — high rental demand from transient mining workforces pushes weekly rents well above what you'd expect for the median price. South Hedland and Karratha lead the country with the highest yields during mining upswings. These Pilbara towns see extraordinary tenant demand from fly-in-fly-out workers and mining operations, pushing weekly rents well above what you'd expect for the median price. During the current resources boom, the highest yields in Western Australia regularly exceed 10%, making these some of the most attractive rental returns in the country.

Kalgoorlie in the Goldfields offers more stable returns than the Pilbara, with houses under $350,000 and strong demand from gold mining operations. The highest yields here sit around 7-8% with less volatility. Regional WA and NT regions frequently yield over 6% for houses and 7% for units due to high demand from mining and defence sectors combined with affordable median prices. For property investors who want regional WA exposure without Pilbara risk, Geraldton is a solid option — well away from the Perth CBD market but with the highest yields among WA's mid-sized coastal suburbs. Regional SA suburbs like Port Augusta and Port Pirie offer similar yields to WA's Goldfields without the mining cycle volatility.

Highest Rental Yield Suburbs in South Australia

South Australia's regional centres deliver strong rental yield figures, with several towns offering returns above 7%.

Port Augusta and Best SA Investment Suburbs

Port Augusta offers the highest yields in South Australia, supported by defence spending (Woomera), energy infrastructure, and its position as a major transport hub. With a median price under $200,000, the gross returns sit above 8%, making Port Augusta one of the highest yields in regional Australia. Port Pirie delivers similar rental returns with its smelter-driven economy.

Whyalla is worth watching — the planned steelworks modernisation and hydrogen hub could drive both property values and high rental demand higher. Property investors already see strong rental returns here at 7.7%, with the highest yields expected to climb as new infrastructure investment flows in.

Highest Rental Yield Suburbs in Northern Territory

The Northern Territory remains one of the most consistent sources of highest yields in Australia, driven by defence, government, and resource sector employment. Regional NT towns regularly produce the highest yields outside Western Australia's Pilbara region.

The Northern Territory has consistently high rental yields, with Tennant Creek houses delivering a yield above 10% thanks to mining support services and extremely affordable entry prices. Katherine delivers the highest yields among NT's larger towns, driven by the nearby Tindal RAAF base and agricultural employment. Consistent tenant demand from defence personnel keeps vacancy rates extremely low, supporting the highest yields in the 8%+ range.

Darwin's outer suburbs like Zuccoli and Johnston offer property investors a more liquid market with solid rental returns above 6%. Alice Springs benefits from tourism, health services, and mining support — creating reliable rental demand that produces some of the highest yields for a town of its size in Australia.

Highest Rental Yield Suburbs in Australian Capital Territory

The Australian Capital Territory generally delivers lower rental yields than other states due to higher median property prices. However, unit investments in specific suburbs can still achieve competitive rental returns.

For property investors targeting the Australian Capital Territory, units outperform houses for the highest yields. Government and public sector employment creates consistent tenant demand, and vacancy rates across Canberra sit well below the national average. While the rental returns are moderate compared to regional mining towns, the trade-off is steady growth and extremely low vacancy risk. The highest yields in the ACT come from well-located units near public transport and government hubs.

Top 10 Highest Rental Yield Suburbs Across Australia

Comparing the highest yields across all states reveals a clear pattern — mining and resource towns dominate the top of the list, with Western Australia and Queensland claiming most of the top 10 positions:

The common thread across these suburbs is affordable entry prices combined with strong rental demand from essential industries — mining, agriculture, defence, and healthcare. All 10 suburbs have median house prices under $350,000 and vacancy rates below 2%.

Investment Property Rental Yield vs Capital Growth: Which to Prioritise

The highest yields in Australia tend to come with a trade-off: limited growth. A property in South Hedland producing the highest yields at 12% might see flat or declining property prices when the mining cycle turns, while a Sydney property yielding 2.5% could deliver 7% annual price growth.

Smart property investors consider both metrics:

• Cash flow strategy — target the highest rental yield suburbs (7%+) to generate positive cash flow from day one. Best for property investment portfolios where rental income needs to cover holding costs, especially with interest only loans.
• Growth strategy — accept lower rental returns (3-4%) in capital city markets with strong population growth. Capital city investment property typically offers better liquidity and long-term equity gains.
• Balanced approach — look for investment suburbs delivering 5-6% with good growth indicators. Regional cities like Shepparton, Rockhampton, and Geraldton often produce the highest rental yield and capital growth combination for property investment outside the capital city markets.

PropBoss handles this analysis automatically — the cash flow calculator models your actual rental returns, interest payments, and holding costs across your entire portfolio so you can see which properties deliver positive cash flow and which are costing you.

How to Identify Suburbs With the Highest Yields Using Data

Finding the best rental yield suburbs takes more than just dividing rent by price. Savvy investors use multiple data points to identify suburbs where houses and units deliver steady, reliable yields year after year. Here's what to check for each suburb using the latest data from sources like CoreLogic and SQM Research:

1. Gross and net yield data — use the formula above, or plug your investment property numbers into the PropBoss Rental Yield Calculator to get instant results for houses and units in any suburb
2. Vacancy rate data — anything above 3% is a warning sign. Check SQM Research or the rental appraisal data from local agents for your target suburbs
3. Median values for houses and units — are prices for houses rising, falling, or flat in your target suburbs? This data affects your total return on investment
4. Employment diversity data — single-industry suburbs (mining towns) carry higher risk than diversified regional markets
5. Population growth data — growing populations in regional areas drive both tenant demand and property values, creating steady yields for investors

The difference between savvy investors and beginners often comes down to how much data they analyse before committing. Regional markets like the suburbs listed above offer higher returns and strong yields, but the data behind those yields matters just as much as the headline number. Affordable entry points make these regional markets attractive, but always check whether weekly rents in your target suburbs are supported by steady, long term demand.

Houses generally deliver slightly lower yields than units in the same suburbs due to higher median values, but houses offer stronger capital growth. In regional markets, detached houses often produce double digit returns because the market value of houses in country towns stays low relative to weekly rents. For investors building a portfolio across multiple regional markets, tracking yields on both houses and units in each suburb is essential.

Frequently Asked Questions

What Is a Good Rental Yield in Australia in 2026?

A gross rental yield above 5% is considered good in the current Australian market. Anything above 7% is strong. The national average sits around 3.5-4% for houses, so the high rental yield suburbs listed here significantly outperform the benchmark. If you want to learn the formula in detail, our guide on how to calculate rental yield covers it step by step.

Should I Prioritise Rental Yield or Capital Growth?

It depends on your strategy and cash flow position. Property investors who need rental income to cover costs should target higher rental returns. Those who can fund shortfalls should consider capital growth markets. Most experienced investors hold a mix — some high yield properties generating positive cash flow and some growth assets building long-term equity.

Are High Rental Yield Suburbs Risky?

Higher yields often correlate with higher risk factors: single-industry dependency, population decline, or remote locations. The key risk mitigation for property investors is checking tenant demand indicators — vacancy rate, population trend, and employment diversity — before buying.

Is There a Tool That Tracks Rental Yield Across My Properties?

PropBoss tracks yields, cash flow, and total returns across all your investment properties with automated bank feeds, depreciation schedules, and ATO-compliant reporting. It calculates your actual yield (not just estimates) using real rent data from your bank transactions, so you always know which properties are delivering the highest returns and which are underperforming. Start your free trial →

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