Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Hobart's property market is included in our pack
If you are a foreigner thinking about buying property in Hobart to rent it out, this guide covers everything you need to know about ownership rules, rental yields, costs, and regulations as of early 2026.
We keep this article updated regularly so that every number and rule reflects the current situation in Hobart's rental market.
Whether you want to do long-term renting or short-term Airbnb-style hosting, you will find practical and specific information tailored to Hobart below.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hobart.
Insights
- Foreign buyers in Hobart are currently banned from purchasing established homes until March 2027, which means new builds or vacant land are the main investment paths available right now.
- Hobart's gross rental yield sits around 4.3% on average, but units outperform houses significantly with yields reaching about 5.5% compared to 3.6% for houses.
- The vacancy rate in Hobart is extremely low in early 2026, so landlords can realistically budget for only 2 to 4 weeks of vacancy per year for a well-priced property.
- Short-term rentals in Hobart average around 61% occupancy with a nightly rate of about A$178, but you must have a permit number to list on Airbnb in Tasmania.
- A 2-bedroom apartment in Hobart typically rents for around A$530 per week, which translates to roughly A$2,300 per month or about US$1,500.
- Heating quality, especially reverse-cycle heat pumps, is one of the biggest rent boosters in Hobart because winters are cold and tenants prioritize warmth.
- The northern corridor suburbs like Moonah and Glenorchy often deliver better yields than prestige areas like Battery Point because entry prices are lower while tenant demand stays solid.
- Land tax in Tasmania is a significant cost that can meaningfully reduce your net yield, especially if you own multiple investment properties that get aggregated together.
Can I legally rent out a property in Hobart as a foreigner right now?
Can a foreigner own-and-rent a residential property in Hobart in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Hobart, but there are strict limits on what types of property you can actually buy under current federal rules.
The main ownership path for foreign investors in Hobart right now is purchasing new dwellings, off-the-plan apartments, or vacant land with a build requirement, since established homes are generally off-limits.
The single biggest restriction foreigners face is Australia's federal ban on buying established dwellings, which runs from April 2025 to March 2027 and effectively forces foreign buyers toward new construction or vacant land instead.
If you're not a local, you might want to read our guide to foreign property ownership in Hobart.
Do I need residency to rent out in Hobart right now?
You do not need to be an Australian resident or live in Hobart to rent out a property there, as plenty of foreign landlords manage their Hobart investments remotely through local property managers.
However, you will need to meet Australian tax obligations on your rental income, which typically means getting set up with a Tax File Number and lodging Australian tax returns even while living overseas.
A local Australian bank account is not strictly required by law, but it is highly practical because most property managers use trust accounts for rent collection and paying local bills before transferring net proceeds to you.
Managing a Hobart rental entirely from overseas is absolutely feasible if you hire a licensed local property manager who handles inspections, repairs, tenant communication, and bond lodgment on your behalf.
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What rental strategy makes the most money in Hobart in 2026?
Is long-term renting more profitable than short-term in Hobart in 2026?
As of early 2026, short-term renting in Hobart can generate higher gross revenue than long-term renting, but it comes with more regulation, more work, and more seasonal variability that can eat into profits.
A well-managed long-term rental in Hobart might bring in around A$27,000 to A$30,000 per year (roughly US$17,500 to US$19,500 or €16,000 to €18,000), while a well-managed short-term rental could reach A$35,000 to A$40,000 gross (roughly US$22,750 to US$26,000 or €21,000 to €24,000), though expenses and vacancy risk are higher.
Properties in tourist-friendly locations like Battery Point, Salamanca, or waterfront areas tend to favor short-term renting because they attract visitors willing to pay premium nightly rates, especially during peak tourism months.
What's the average gross rental yield in Hobart in 2026?
As of early 2026, the average gross rental yield for residential properties in Hobart sits around 4.3%, according to NAB's property market research.
The realistic range spans from about 3.5% on the low end for expensive houses in prestige suburbs to around 5.5% on the high end for well-located units with lower purchase prices.
Units typically achieve the highest gross rental yields in Hobart because their lower purchase prices relative to weekly rents create a more favorable yield calculation compared to houses.
By the way, we have much more granular data about rental yields in our property pack about Hobart.
What's the realistic net rental yield after costs in Hobart in 2026?
As of early 2026, the average net rental yield after all running costs in Hobart typically falls between 2.5% and 4.0%, depending heavily on your property type and specific cost structure.
Most Hobart landlords realistically experience net yields somewhere in the 2.5% to 3.5% range for houses and 3.5% to 4.5% range for units once all expenses are deducted.
The three main cost categories that reduce gross yield to net yield in Hobart specifically are: land tax (which applies to investment properties and scales with land value), property management fees (typically 5% to 10% of rent plus letting fees), and council rates (calculated on your property's assessed value by the City of Hobart).
You might want to check our latest analysis about gross and net rental yields in Hobart.
What monthly rent can I get in Hobart in 2026?
As of early 2026, typical monthly rents in Hobart are around A$1,820 (US$1,180 or €1,090) for a studio, A$2,080 (US$1,350 or €1,250) for a 1-bedroom, and A$2,300 (US$1,500 or €1,380) for a 2-bedroom apartment in good locations.
A decent studio in Hobart realistically rents for somewhere between A$1,600 and A$2,000 per month (US$1,040 to US$1,300 or €960 to €1,200), depending on location and condition.
A typical 1-bedroom apartment in Hobart commands between A$1,900 and A$2,300 per month (US$1,235 to US$1,495 or €1,140 to €1,380), with better locations and newer finishes pushing toward the higher end.
A standard 2-bedroom apartment in Hobart rents for between A$2,100 and A$2,600 per month (US$1,365 to US$1,690 or €1,260 to €1,560), with well-located properties featuring parking and heating fetching premium rates.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Hobart.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Hobart in 2026?
What's the total "all-in" monthly cost to hold a rental in Hobart in 2026?
As of early 2026, the total all-in monthly cost to hold a typical rental property in Hobart is around A$700 to A$1,000 (US$455 to US$650 or €420 to €600) for units and A$900 to A$1,250 (US$585 to US$815 or €540 to €750) for houses, excluding mortgage payments.
The realistic range covering most standard Hobart rental properties runs from about A$550 per month on the low end for a simple unit to A$1,250 per month on the high end for a larger house with higher land tax exposure.
Land tax tends to be the single largest contributor to monthly holding costs for Hobart investment properties because Tasmania applies it to rental and holiday properties based on land value, and it scales up if you own multiple properties.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Hobart.
What's the typical vacancy rate in Hobart in 2026?
As of early 2026, Hobart's rental vacancy rate is extremely low, sitting well below the national average according to SQM Research data, which indicates a very tight rental market.
Landlords in Hobart should realistically budget for about 2 to 4 weeks of vacancy per year for a well-priced and well-presented property, because the market is so tight that good rentals get snapped up quickly.
The main factor causing vacancy rates to vary across Hobart neighborhoods is proximity to employment hubs and transport, with inner-city areas near the CBD and university experiencing the lowest vacancy while outer suburbs may see slightly longer turnover periods.
Tenant turnover in Hobart typically peaks around late January through February when university students relocate and new leases begin, which aligns with the Australian academic calendar.
We have a whole part covering the best rental strategies in our pack about buying a property in Hobart.
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Where do rentals perform best in Hobart in 2026?
Which neighborhoods have the highest long-term demand in Hobart in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Hobart are the Hobart CBD, Sandy Bay, and North Hobart, all of which benefit from proximity to employment, education, and lifestyle amenities.
Families looking for long-term rentals in Hobart tend to gravitate toward New Town, Lenah Valley, and Kingston because these suburbs offer good schools, parks, and more space while still being accessible to the city.
Students create the strongest rental demand in Sandy Bay and Dynnyrne due to their closeness to the University of Tasmania campus, along with parts of South Hobart that have good bus connections to campus.
Expats and international professionals typically prefer Battery Point, Sandy Bay, and West Hobart because these neighborhoods offer walkability, heritage charm, waterfront access, and proximity to the Salamanca dining and cultural precinct.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hobart.
Which neighborhoods have the best yield in Hobart in 2026?
As of early 2026, the top three neighborhoods with the best rental yields in Hobart are Moonah, Glenorchy, and Claremont, all located in the northern corridor where purchase prices are more affordable relative to achievable rents.
These top-yielding Hobart neighborhoods typically deliver gross rental yields in the range of 5% to 6%, compared to 3% to 4% in prestige inner-south suburbs like Battery Point or Sandy Bay.
The main characteristic allowing these northern corridor suburbs to achieve higher yields is their working-class housing stock with lower land values, which keeps purchase prices down while consistent local employment and transport access maintains solid tenant demand.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Hobart.
Where do tenants pay the highest rents in Hobart in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Hobart are Battery Point, Sandy Bay, and the Hobart CBD/Salamanca area, where premium amenities and scarcity drive prices up.
A standard apartment in these premium Hobart neighborhoods typically rents for A$2,500 to A$3,200 per month (US$1,625 to US$2,080 or €1,500 to €1,920), with waterfront or heritage properties commanding even more.
The main characteristic driving these premium rents is the combination of walkable access to Hobart's best restaurants, cafes, and cultural attractions plus severe supply constraints in these historically protected, low-density areas.
Tenants renting in these highest-rent Hobart neighborhoods are typically senior professionals, executives, visiting academics, medical specialists at nearby hospitals, and well-paid consultants who prioritize lifestyle and location over space.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Hobart in 2026?
What features increase rent the most in Hobart in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Hobart are high-quality heating (especially reverse-cycle heat pumps), off-street parking, and pet-friendly policies, all of which address Hobart's specific climate and housing constraints.
A modern reverse-cycle heat pump system can add a rent premium of roughly 5% to 10% in Hobart because winters are genuinely cold and tenants actively seek properties with efficient, comfortable heating.
One commonly overrated feature that Hobart landlords often invest in but tenants do not pay much extra for is high-end kitchen appliances, since most renters care more about heating, parking, and location than having a premium oven.
An affordable upgrade that provides strong return on investment for Hobart landlords is adding proper window insulation or draft sealing, which costs relatively little but meaningfully improves tenant comfort and reduces heating bills.
Do furnished rentals rent faster in Hobart in 2026?
As of early 2026, furnished apartments in Hobart typically rent about 1 to 2 weeks faster than unfurnished ones because they attract relocating professionals, postgraduate students, and medium-term visitors who need immediate move-in solutions.
Furnished rentals in Hobart generally command a rent premium of around 10% to 20% over comparable unfurnished properties, though this comes with higher wear-and-tear costs and more management complexity for landlords.
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How regulated is long-term renting in Hobart right now?
Can I freely set rent prices in Hobart right now?
Landlords in Hobart have full freedom to set the initial rent at whatever the market will bear when a new tenancy begins, as there is no starting-rent control in Tasmania.
During a tenancy, rent increases are not subject to a hard cap in Hobart, but tenants can challenge increases they consider unreasonable through the Residential Tenancy Commissioner, which means landlords should be able to justify any raises as market-consistent.
What's the standard lease length in Hobart right now?
The most common lease arrangement in Hobart is a 12-month fixed-term agreement, though shorter fixed terms (minimum 4 weeks) and periodic tenancies are also permitted under Tasmanian law.
The maximum security deposit a landlord can legally require in Hobart is 4 weeks of rent, which for a typical 2-bedroom at A$530 per week works out to A$2,120 (about US$1,380 or €1,270).
Security deposits in Hobart must be lodged through the official MyBond system rather than held directly by the landlord, and they are returned through this same system at tenancy end after any legitimate deductions for damage or unpaid rent are resolved.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Hobart in 2026?
Is Airbnb legal in Hobart right now?
Airbnb-style short-term rentals can be legal in Hobart, but they operate under a compliance-led framework where permits and approvals are typically required depending on your property's planning zone and use intensity.
To operate legally, you generally need to complete a self-assessment and may require council planning approval, and Airbnb itself now requires a valid permit number to maintain an active Tasmania listing.
Tasmania does not have a single statewide cap on annual rental nights, but constraints can come through individual permit conditions and local planning enforcement that vary by property and zone.
Operating an unlicensed or non-compliant short-term rental in Hobart can result in removal from booking platforms (since Airbnb enforces permit requirements), council enforcement action, and potential fines under Tasmania's Short Stay Accommodation Act 2019.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hobart.
What's the average short-term occupancy in Hobart in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Hobart is approximately 61%, according to AirDNA market data.
The realistic occupancy range that most Hobart short-term rentals experience spans from about 45% for underperforming or poorly located listings to 75% or higher for well-optimized properties in prime tourist areas.
The highest occupancy months for Hobart short-term rentals are typically December through March, when summer weather and events like the Sydney to Hobart yacht race and MONA FOMA festival drive peak tourist arrivals.
The lowest occupancy months are usually June through August, when Hobart's cold, wet winter weather significantly reduces tourist visits and short-term rental demand drops accordingly.
Finally, please note that you can find much more granular data about this topic in our property pack about Hobart.
What's the average nightly rate in Hobart in 2026?
As of early 2026, the average nightly rate for short-term rentals in Hobart is approximately A$178 (about US$116 or €107), according to AirDNA market data.
The realistic nightly rate range covering most Hobart short-term listings spans from about A$100 (US$65 or €60) for basic apartments in outer areas to A$300 or more (US$195 or €180) for premium waterfront or heritage properties.
Peak season rates in Hobart (December through February) typically run A$50 to A$100 per night higher than off-season rates (June through August), translating to a seasonal swing of roughly US$30 to US$65 or €30 to €60.
Is short-term rental supply saturated in Hobart in 2026?
As of early 2026, Hobart's short-term rental market shows moderate saturation with approximately 1,500 active listings competing for seasonal tourist demand that fluctuates significantly throughout the year.
The trend in active Hobart short-term listings has been relatively stable recently, with regulatory enforcement (permit requirements) acting as a natural brake on rapid supply growth.
The most oversaturated neighborhoods for short-term rentals in Hobart are Battery Point, Salamanca, and the Hobart CBD waterfront area, where high concentrations of listings compete intensely for the same tourist foot traffic.
Suburbs with room for new short-term rental supply include areas like South Hobart, West Hobart, and some northern corridor locations that offer easy CBD access but have fewer existing listings and less direct competition.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Hobart, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Foreign Investment Review Board (FIRB) | Australia's official government rulebook for foreign property buyers. | We used it to confirm what property types foreigners can purchase in 2026. We also referenced it to explain the established-home ban timeline. |
| Australian Taxation Office (ATO) | The tax authority explaining legal obligations clearly. | We used it to confirm rental income declaration requirements for foreign landlords. We also referenced it for tax residency and lodgment expectations. |
| SQM Research | Widely cited Australian housing analytics with published methodology. | We used it to anchor Hobart rent levels and vacancy rates. We also computed implied yields by pairing their rent and price data. |
| NAB Property Research | Major Australian bank with credible market research. | We used it to cross-check gross yield levels for Hobart investors. We also referenced it for market direction commentary. |
| Domain Rental Report | Major Australian property portal with recurring transparent reports. | We used it to triangulate Hobart rent levels and market trends. We also validated SQM data against their independent findings. |
| AirDNA | Widely used short-stay analytics provider with consistent metrics. | We used it to anchor Hobart Airbnb occupancy and nightly rates. We also referenced it for supply saturation analysis. |
| CBOS Tasmania | Tasmania's consumer regulator explaining tenancy rules practically. | We used it to describe lease types and bond rules in plain language. We also referenced it for rent increase and dispute procedures. |
| State Revenue Office Tasmania | Official tax scale for investment property land tax. | We used it to estimate land tax as a key holding cost. We also showed how land value bands affect net yield. |
| City of Hobart | Local council's official rates schedule. | We used it to anchor council rate budgeting for Hobart landlords. We incorporated their formula into our cost estimates. |
| Short Stay Accommodation Act 2019 | Binding law for short-stay enforcement in Tasmania. | We used it to explain Airbnb legality and permit requirements. We also referenced it for compliance risk context. |
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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