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're a foreigner thinking about buying an apartment in Hobart, one of your first questions is probably: what kind of rental yield can I actually expect?
Hobart's rental market has been tight for years, and that makes it an interesting place for investors who want steady income from their property.
In this article, we break down exactly what gross and net yields look like in Hobart in 2026, which apartment types perform best, and what costs you need to factor in.
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.
What rental yields can I realistically get from an apartment in Hobart?
What's the average gross rental yield for apartments in Hobart as of 2026?
As of early 2026, the average gross rental yield for apartments in Hobart sits at around 5.5%, which is a solid return by Australian capital city standards.
That said, the realistic range for most apartment investments in Hobart spans from about 4.8% up to 6.2%, depending on where you buy and what kind of unit you choose.
The main factor that causes yields to vary so much in Hobart is whether your apartment sits in an expensive inner-city pocket like Battery Point or Sandy Bay (where prices are high but rents don't climb proportionally) versus a more affordable suburb like Moonah or Glenorchy where entry prices are lower but rental demand stays strong thanks to local workers and families.
Compared to other Australian capital cities, Hobart apartments actually offer better gross yields than Sydney (around 3.5%) and Melbourne (around 4%), which makes Hobart attractive for yield-focused investors even though it's a smaller market.
What's the average net rental yield for apartments in Hobart as of 2026?
As of early 2026, the average net rental yield for apartments in Hobart lands at around 3.2%, once you subtract all the typical running costs from your gross rent.
Most apartment investors in Hobart can realistically expect a net yield somewhere between 3.0% and 4.0%, with the exact figure depending on how efficiently they manage costs and how low their strata fees are.
The single biggest expense that eats into your gross yield in Hobart is strata fees (also called body corporate levies), which can run anywhere from A$3,000 to A$6,000 per year for a typical unit, and that alone can represent 10% to 20% of your annual rent, especially in older buildings with lifts or buildings exposed to Hobart's harsh coastal weather that require ongoing maintenance.
By the way, you will find much more detailed data in our property pack covering the real estate market in Hobart.
What's the typical rent-to-price ratio for apartments in Hobart in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Hobart is around 0.055, which means for every A$100,000 you spend on an apartment, you can expect roughly A$5,500 in annual rent.
The realistic range of rent-to-price ratios for most Hobart apartment transactions falls between 0.048 and 0.062, with the variation depending mostly on location and apartment quality.
The apartment categories and neighborhoods in Hobart that tend to have the highest rent-to-price ratios are modest 1-bed or 2-bed units in working-class suburbs like Moonah, Glenorchy, and Goodwood, where purchase prices stay relatively affordable but rents benefit from strong local demand from hospital workers, retail employees, and families who need practical housing near services.
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How much rent can I charge for an apartment in Hobart?
What's the typical tenant budget range for apartments in Hobart right now?
The typical monthly tenant budget for renting an apartment in Hobart in early 2026 ranges from about A$1,500 to A$2,800 per month (roughly US$950 to US$1,750, or EUR 870 to EUR 1,620), depending on size and location.
Tenants targeting mid-range apartments in Hobart, such as a decent 2-bedroom unit in suburbs like New Town or Moonah, typically budget between A$2,000 and A$2,500 per month (US$1,260 to US$1,575, or EUR 1,160 to EUR 1,450).
For high-end or luxury apartments in Hobart, such as waterfront units in Battery Point or modern builds near Salamanca, tenants are prepared to pay A$3,000 to A$4,000 or more per month (US$1,890 to US$2,520, or EUR 1,740 to EUR 2,320).
We have a blog article where we update the latest data about rents in Hobart here.
What's the average monthly rent for a 1-bed apartment in Hobart as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Hobart is around A$1,780 per month (approximately US$1,120 or EUR 1,030), based on inner-city listings in postcode 7000.
At the entry level, you can find a decent 1-bed apartment in Hobart for about A$1,400 to A$1,600 per month (US$880 to US$1,010, or EUR 810 to EUR 930), which typically means an older unit in suburbs like Moonah or Glenorchy with basic fittings but close to buses and shops.
A typical mid-range 1-bed apartment in Hobart rents for about A$1,700 to A$1,900 per month (US$1,070 to US$1,200, or EUR 985 to EUR 1,100), and this usually gets you something in North Hobart or New Town with updated interiors, possibly a parking spot, and easy access to cafes and the CBD.
At the high end, a luxury 1-bed apartment in Hobart commands A$2,200 to A$2,800 per month (US$1,385 to US$1,765, or EUR 1,275 to EUR 1,625), which means a modern unit in Battery Point or near Salamanca with water views, quality finishes, and secure parking.
What's the average monthly rent for a 2-bed apartment in Hobart as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Hobart ranges from about A$2,245 (citywide) to A$2,795 (inner Hobart), which works out to roughly US$1,415 to US$1,760, or EUR 1,300 to EUR 1,620.
At the entry level, a decent 2-bed apartment in Hobart rents for about A$1,900 to A$2,200 per month (US$1,200 to US$1,385, or EUR 1,100 to EUR 1,275), which typically means an older brick unit in Glenorchy, Moonah, or Lutana with two proper bedrooms, a basic kitchen, and street parking.
A typical mid-range 2-bed apartment in Hobart costs about A$2,400 to A$2,800 per month (US$1,510 to US$1,765, or EUR 1,390 to EUR 1,625), and this usually gets you something in Sandy Bay near the University of Tasmania, or in South Hobart with updated bathrooms, a balcony, and one secure parking spot.
At the high end, a luxury 2-bed apartment in Hobart commands A$3,200 to A$4,000 per month (US$2,015 to US$2,520, or EUR 1,855 to EUR 2,320), which means a waterfront unit in Battery Point, a heritage conversion near Salamanca, or a new-build with harbor views, premium finishes, and concierge-style amenities.
What's the average monthly rent for a 3-bed apartment in Hobart as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in inner Hobart is around A$3,685 per month (approximately US$2,320 or EUR 2,135), though 3-bed apartments are less common and tend to cluster in premium locations.
At the entry level, a decent 3-bed apartment in Hobart rents for about A$2,800 to A$3,200 per month (US$1,765 to US$2,015, or EUR 1,625 to EUR 1,855), which typically means an older unit in suburbs like West Moonah or Claremont with three bedrooms, a functional layout, and possibly a small courtyard or garage.
A typical mid-range 3-bed apartment in Hobart costs about A$3,400 to A$3,800 per month (US$2,140 to US$2,395, or EUR 1,970 to EUR 2,200), and this usually gets you something in North Hobart or New Town with updated interiors, separate living areas, good storage, and secure parking for at least one car.
At the high end, a luxury 3-bed apartment in Hobart commands A$4,200 to A$5,500 per month (US$2,645 to US$3,465, or EUR 2,435 to EUR 3,190), which means a spacious penthouse-style unit in Battery Point, Sandy Bay waterfront, or a prestige new development with harbor views, multiple bathrooms, and premium building amenities.
How fast do well-priced apartments get rented in Hobart?
A well-priced apartment in Hobart typically rents within 1 to 3 weeks in early 2026, with clean 2-bedroom units near the CBD or Sandy Bay often finding tenants even faster.
The typical vacancy rate for apartments in Hobart remains very tight, generally sitting below 2%, which means landlords rarely face long periods without rental income if their asking rent is realistic.
The main factors that cause some Hobart apartments to rent faster than others include proximity to the University of Tasmania (which generates constant demand from students and staff in the Sandy Bay corridor), efficient heating systems (because Hobart winters are cold and tenants actively avoid poorly insulated units), and secure parking (which is scarce and highly valued in inner suburbs where street parking is difficult).
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Hobart?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Hobart as of 2026?
As of early 2026, studios and 1-bed apartments in Hobart typically offer the best gross rental yields, provided you avoid overpaying for premium waterfront or heritage locations where prices are inflated.
The typical gross rental yield range in Hobart breaks down roughly as follows: studios and 1-beds can achieve 5.5% to 6.2%, 2-beds generally land around 5.0% to 5.5%, and 3-beds tend to fall to 4.5% to 5.0% because their purchase prices climb faster than the rents they can command.
The main reason smaller apartments outperform larger ones on yield in Hobart is that the city's renter base is heavily weighted toward singles, couples, and University of Tasmania students who need affordable, practical housing near the CBD and Sandy Bay, which keeps demand (and rents) strong for compact units while larger apartments appeal to a narrower pool of family tenants who often prefer houses instead.
Which features are best if you want a good yield for your apartment in Hobart?
The features that most positively impact rental yield for apartments in Hobart include proximity to the CBD or University of Tasmania campus, efficient reverse-cycle heating (essential for Hobart's cold winters), secure parking in areas where street parking is limited, and low-complexity buildings with minimal shared amenities to keep strata fees down.
In Hobart, upper floors tend to rent out more easily in buildings with lifts because they offer better views and more natural light, but ground-floor units with private courtyard access also attract tenants who want outdoor space without paying for a house.
Apartments with balconies or outdoor space do command higher rents in Hobart, especially in inner suburbs where private outdoor areas are rare, and tenants are often willing to pay an extra A$20 to A$40 per week for a usable balcony with city or water views.
Building features like lifts and secure parking raise rents enough to justify their costs in Hobart, but concierge services and pools generally do not, because the city's tenant pool is practical-minded and prefers keeping their rent affordable over paying for amenities they rarely use.
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Which neighborhoods give the best rental demand for apartments in Hobart?
Which neighborhoods have the highest rental demand for apartments in Hobart as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Hobart are the CBD (postcode 7000), Sandy Bay, Battery Point, North Hobart, and South Hobart, all of which benefit from walkability, job access, and lifestyle appeal.
The main demand driver that makes these neighborhoods attractive to apartment tenants in Hobart is their proximity to the two biggest employment and activity centers: the Hobart CBD (with its government offices, retail, and hospitality jobs) and the University of Tasmania's Sandy Bay campus (which generates constant demand from students, academics, and university staff).
In these high-demand neighborhoods, vacancy rates typically sit below 1.5% and well-priced apartments often rent within 1 to 2 weeks, especially 2-bedroom units that appeal to both couples and sharers.
One emerging neighborhood that is gaining rental demand momentum in Hobart is Moonah, which offers much lower entry prices than inner-city suburbs but sits on a direct bus corridor to the CBD and has seen growing interest from young professionals and families priced out of Sandy Bay and North Hobart.
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 highest yields for apartments in Hobart as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Hobart are generally the more affordable northern suburbs like Moonah, Glenorchy, Goodwood, Lutana, and Berriedale, where purchase prices are lower but rental demand remains solid.
In these top-yielding neighborhoods, gross rental yields for apartments typically range from 5.5% to 6.5%, compared to 4.5% to 5.0% in premium inner suburbs like Battery Point or Sandy Bay where high purchase prices compress returns.
The main reason these neighborhoods offer higher yields than others in Hobart is that they serve a steady pool of essential workers, families, and people who work at nearby employment hubs like the Royal Hobart Hospital or Glenorchy retail centers, which keeps rental demand strong even though the suburbs lack the prestige appeal of waterfront locations.
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.
Should I do long-term rental or short-term rental in Hobart?
Is short-term rental legal for apartments in Hobart as of 2026?
As of early 2026, short-term rental (Airbnb-style) is legal for apartments in Hobart, but it may require a planning permit depending on your property and how you operate it, and getting a permit can also trigger higher council rates.
The main legal restrictions for operating a short-term rental apartment in Hobart include checking whether your property needs a planning permit for visitor accommodation under the City of Hobart's planning scheme, and if you do get approved, your council rates may increase because the city applies a differential rating category to permitted short-stay properties.
For registration and licensing, Tasmania requires short-term rental operators to follow the state's visitor accommodation requirements, which means checking with ABLIS (the Australian Business Licence and Information Service) for compliance steps, potentially obtaining a determination or completing a self-assessment, and ensuring your building's strata rules allow short-term letting.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hobart.
What's the gross yield difference short-term vs long-term in Hobart in 2026?
As of early 2026, short-term rentals in Hobart can generate a gross yield of around 7% to 9% compared to roughly 5.5% for long-term rentals, but this gap shrinks significantly once you account for the extra costs of running a short-stay property.
The typical gross yield range for short-term rentals in Hobart is 7% to 9% for a well-located "entire place" apartment, while long-term rentals typically deliver 5% to 6%, meaning the gross premium for short-term can be 1.5 to 3 percentage points higher.
The main additional costs that reduce the net yield advantage of short-term rentals in Hobart include platform fees (Airbnb takes around 3%), cleaning between guests (which can add up to A$100 or more per turnover), higher utility bills (you pay everything), furnishing and replacement costs, and the differential council rating that applies if you hold a planning permit for visitor accommodation.
To outperform a long-term rental in Hobart, a short-term rental typically needs to achieve an occupancy rate of at least 55% to 60% at competitive nightly rates, which is achievable in peak tourist season but harder to maintain year-round given Hobart's quieter winter months.
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What costs will eat into my net yield for an apartment in Hobart?
What are building service charges as a % of rent in Hobart as of 2026?
As of early 2026, building service charges (strata or body corporate fees) for apartments in Hobart typically represent about 10% to 15% of your annual rent, which translates to roughly A$2,500 to A$4,500 per year (US$1,575 to US$2,835, or EUR 1,450 to EUR 2,610) for a typical unit.
The realistic range of building service charges in Hobart spans from about 8% of rent for simple, low-rise buildings up to 20% or more for complexes with lifts, extensive common areas, or waterfront exposure that requires ongoing maintenance.
The services and building features that typically justify higher-than-average service charges in Hobart include lifts (which need regular servicing), heated common areas (because of the cold climate), buildings with harbor or waterfront exposure (which face harsher weather and higher external maintenance costs), and older buildings with underfunded sinking funds that require special levies to catch up on deferred repairs.
What annual maintenance budget should I assume for an apartment in Hobart right now?
A typical annual maintenance budget for an apartment in Hobart is around A$1,000 to A$2,000 per year (US$630 to US$1,260, or EUR 580 to EUR 1,160) for inside-the-unit expenses like appliance repairs, minor fixes, and periodic repainting, on top of your strata levies which cover common areas.
The realistic range of annual maintenance costs in Hobart depends on apartment age and condition: newer units in well-maintained buildings might only need A$500 to A$1,000 per year, while older apartments (especially those built before 1990) can easily require A$1,500 to A$2,500 or more to address wear on heating systems, plumbing, and dated fixtures.
The most common maintenance expenses apartment owners face annually in Hobart are heating system servicing (reverse-cycle units need regular attention in the cold climate), hot water system repairs, window seal replacements (Hobart's weather causes faster degradation), and periodic carpet or flooring refreshes between tenancies to keep the unit competitive in a tight rental market.
What property taxes should I expect for an apartment in Hobart as of 2026?
As of early 2026, the main recurring property taxes for an apartment in Hobart include council rates (typically A$1,500 to A$2,500 per year, or US$945 to US$1,575 / EUR 870 to EUR 1,450) and potentially Tasmania land tax if your property exceeds certain value thresholds or you own multiple properties.
The realistic range of property taxes in Hobart depends on your apartment's assessed value and location: a modest unit in Moonah might attract council rates closer to A$1,200 per year, while a waterfront apartment in Battery Point could face rates of A$3,000 or more, plus land tax obligations that can add several hundred to several thousand dollars annually.
Property taxes in Hobart are calculated based on your property's Assessed Annual Value (for council rates) and land value (for state land tax), with the City of Hobart setting its own rate-in-the-dollar each year, and Tasmania's State Revenue Office applying land tax brackets that increase progressively as your total land holdings grow.
There are limited property tax exemptions available for apartment owners in Hobart: you may qualify for a principal place of residence exemption from land tax if you live in the property yourself, but investment properties do not receive this benefit, and there are no broad exemptions for foreign owners.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Hobart.
How much does landlord insurance cost for an apartment in Hobart in 2026?
As of early 2026, a typical landlord insurance policy for an apartment in Hobart costs around A$400 to A$700 per year (US$250 to US$440, or EUR 230 to EUR 405), with one insurer (RentCover) publishing an average premium of about A$470 for a standard policy tier.
The realistic range of annual landlord insurance costs in Hobart spans from about A$350 for basic cover on a modest unit with a higher excess, up to A$900 or more for comprehensive cover on a higher-value apartment that includes loss of rent protection, contents cover, and lower excess options.
What's the typical property management fee for apartments in Hobart as of 2026?
As of early 2026, the typical property management fee for apartments in Hobart is around 7% to 8% of the monthly rent collected (roughly A$150 to A$200 per month, or US$95 to US$125 / EUR 87 to EUR 115, on a A$2,400/month rental), plus one-off fees for new tenant placement.
The realistic range of property management fees in Hobart spans from about 5% of rent for basic services up to 10% or more for full-service packages that include routine inspections, maintenance coordination, and detailed reporting.
Standard property management fees in Hobart typically include rent collection, tenant communication, routine property inspections (usually quarterly), coordinating repairs, and handling lease renewals, while extras like advertising costs, lease preparation, and tribunal representation are often charged separately.
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.
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 |
|---|---|---|
| SQM Research (Rents) | Long-running Australian housing data publisher with transparent methodology. | We used their weekly asking rents for Hobart units to anchor our yield calculations. We also used year-on-year rent changes to assess market tightness. |
| SQM Research (Prices) | Publishes frequently updated asking price series based on monitored listings. | We used their asking prices for Hobart units as the denominator for yield calculations. We cross-checked these against Cotality data for consistency. |
| Cotality (CoreLogic) HVI | One of Australia's main housing analytics firms with documented methodology. | We used it to validate that Hobart prices were rising into late 2025. We treated it as a cross-check for our price assumptions. |
| Realestate.com.au | Australia's biggest listings marketplace with data built from actual listings. | We used their bedroom-specific rent medians for postcode 7000. We labeled it clearly as inner Hobart to avoid overgeneralizing. |
| City of Hobart | The local government source for planning rules in Hobart City. | We used it to explain short-stay permit requirements. We also highlighted the differential rating for approved short-stay properties. |
| ABLIS (Australian Government) | Official government service summarizing compliance steps across jurisdictions. | We used it to outline the short-stay compliance pathway for Tasmania. We treated it as a practical checklist for foreign buyers. |
| Tourism Tasmania | Official state tourism body compiling data from STR and AirDNA. | We used it to quantify short-stay demand in Southern Tasmania. We avoided relying only on private Airbnb dashboards. |
| AirDNA | Widely used short-stay data provider with consistent methodology. | We used their ADR and occupancy figures to estimate short-term rental gross yields. We triangulated this with Tourism Tasmania's demand reporting. |
| RentCover | Specialist landlord insurer publishing actual premium averages. | We used their published average premium (A$470/year) as a concrete benchmark. We included it as a line item in our net yield cost stack. |
| Canstar | Mainstream comparison publisher that documents how it sourced insurance quotes. | We used it to anchor a realistic landlord insurance budget range. We treated it as a sanity check against insurer-published averages. |
| Tenants' Union of Tasmania | Long-running local institution publishing rent statistics for Tasmania. | We used it as a reality check that Hobart rents are structurally tight. We used it to support the direction of rents rather than as our numeric base. |
| Agents Compare | Published fee guides comparing property management costs across Australia. | We used their Tasmania-specific fee ranges for property management. We validated with quotes from Hobart property managers. |
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