Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Melbourne's property market is included in our pack
Running an Airbnb in Melbourne in 2026 is legal, but there are specific rules you need to know about, including Victoria's new 7.5% short stay levy and potential building bans in apartment complexes.
Melbourne's short-term rental market has around 35,000 active listings, with typical occupancy rates near 55% and average nightly rates around A$181 to A$224 depending on the data source you consult.
This guide covers everything from legal requirements to realistic profit expectations for Melbourne Airbnb hosts in 2026, and we keep this article updated as regulations and market conditions evolve.
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 Melbourne.
Insights
- Victoria's 7.5% short stay levy (effective January 2025) adds roughly A$2,000 to A$3,600 per year in costs for a typical Melbourne Airbnb listing, which many hosts are passing on to guests through slightly higher nightly rates.
- Over 40% of Melbourne Airbnb listings now use 30+ night minimum stays, suggesting a growing shift toward mid-term rentals that avoid the short stay levy entirely and appeal to corporate travelers.
- Melbourne CBD, Southbank, and Docklands apartments face a unique risk: owners corporations can legally ban short-term rentals in your building, making due diligence on building rules essential before buying.
- Top-performing Melbourne Airbnb hosts achieve 60% to 70% occupancy rates, compared to the market average of 55%, mainly through dynamic pricing around major events like the Australian Open and Formula 1 Grand Prix.
- The Australian Open (January 18 to February 1, 2026) and Formula 1 Australian Grand Prix (March 2026) create Melbourne's biggest Airbnb demand spikes, with nightly rates often increasing 30% to 50% in well-located properties.
- One-bedroom apartments represent 42% of Melbourne's Airbnb supply, making this the most competitive segment, while two-bedroom townhouses in inner lifestyle suburbs often face less direct competition.
- Melbourne's realistic monthly net profit for a well-managed Airbnb ranges from A$1,000 to A$1,800 before mortgage and income tax, based on market-average occupancy and typical operating expenses.
- Kitchen (94%), Wi-Fi (93%), washer (90%), and air conditioning (89%) are now baseline amenities for Melbourne Airbnbs, meaning these features no longer differentiate your listing from competitors.
Can I legally run an Airbnb in Melbourne in 2026?
Is short-term renting allowed in Melbourne in 2026?
As of the first half of 2026, short-term renting is legal in Melbourne, but your ability to operate depends on state taxes, your building's rules, and local planning conditions at your specific address.
The main legal framework governing Melbourne short-term rentals is Victoria's Short Stay Levy Act 2024, which introduced a 7.5% levy on all bookings under 28 consecutive nights starting January 1, 2025.
The single most important restriction Melbourne Airbnb hosts must understand is that owners corporations (strata bodies) in apartment buildings can legally vote to ban short-term rentals entirely, and this affects a large portion of Melbourne's CBD and inner-city apartment stock.
Beyond building rules, hosts must also check their property's planning zone and any overlay conditions, as certain land use restrictions may limit or prohibit short-term accommodation at specific addresses.
For a more general view, you can read our article detailing what exactly foreigners can own and buy in Australia.
If you are an American, you might want to read our blog article detailing the property rights of US citizens in Australia.
Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in Melbourne as of 2026?
As of the first half of 2026, Melbourne does not have a citywide minimum-stay requirement or maximum nights-per-year cap for Airbnb properties, unlike cities such as Sydney which enforces a 180-night annual limit for non-hosted properties.
These rules do not differ by property type or host residency status at the state level, meaning you can rent out your Melbourne property for 365 nights per year if you choose, though individual councils may introduce local limits in the future.
In practice, Melbourne Airbnb hosts typically set their own minimum stays (commonly 2 to 3 nights), with over 40% of listings now using 30+ night minimums to target the mid-term rental market and avoid the short stay levy on longer bookings.
Do I have to live there, or can I Airbnb a secondary home in Melbourne right now?
Melbourne does not require you to live in a property to list it on Airbnb, so both primary residences and investment properties can be used for short-term rentals.
Owners of secondary homes and investment properties can legally operate Melbourne Airbnbs, but the 7.5% short stay levy applies to these properties while principal places of residence are exempt from the levy.
There are no additional permits specifically required for non-primary residence short-term rentals at the state level, though you should verify your property's planning conditions and any building rules before listing.
The main practical difference between renting out a primary residence versus a secondary home in Melbourne is the levy exemption: if you Airbnb your own home while traveling, those bookings are levy-free, but investment property bookings always attract the 7.5% charge.
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Can I run multiple Airbnbs under one name in Melbourne right now?
Melbourne allows you to operate multiple Airbnb listings under one name, as Victoria has not implemented a "one-host-one-home" licensing cap like some other jurisdictions.
There is no maximum number of properties a single person or entity can list for short-term rental in Melbourne at the state level, though building-level bans and planning restrictions may limit where you can actually operate.
Multi-property hosts in Melbourne face the same registration and levy obligations as single-property hosts, with no additional licensing requirements, though your tax and record-keeping complexity increases significantly with each property you add.
Do I need a short-term rental license or a business registration to host in Melbourne as of 2026?
As of the first half of 2026, Melbourne does not require a specific short-term rental license to host on Airbnb, but hosts taking direct bookings (not through platforms) must register with the State Revenue Office to collect and remit the 7.5% short stay levy.
Most Melbourne Airbnb hosts do not need to register separately because platforms like Airbnb automatically collect the levy on their behalf, handling the compliance process directly.
You will need an Australian Business Number (ABN) if your Airbnb revenue exceeds A$75,000 annually and triggers GST registration requirements, though typical residential hosts fall below this threshold.
Are there neighborhood bans or restricted zones for Airbnb in Melbourne as of 2026?
As of the first half of 2026, Melbourne does not have council-designated "no Airbnb" zones, but the most significant restrictions occur at the building level, where owners corporations in apartment complexes can vote to ban short-term rentals.
The neighborhoods with the highest concentration of building-level restrictions tend to be Melbourne CBD, Southbank, and Docklands, where high-rise apartment towers often have owners corporations that have implemented short-stay bans due to noise, security, and amenity concerns.
The main reason these areas see more restrictions is the density of investor-owned apartments and the impact of frequent guest turnover on permanent residents, leading many buildings to pass rules prohibiting stays under 28 or 30 days.
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 much can an Airbnb earn in Melbourne in 2026?
What's the average and median nightly price on Airbnb in Melbourne in 2026?
As of the first half of 2026, the average nightly price (ADR) for Melbourne Airbnb listings is approximately A$181 to A$224 (around US$115 to US$145, or EUR 105 to EUR 130), depending on which data source you consult, with the median sitting roughly 10% to 15% lower at around A$160 (US$100, EUR 95).
The typical nightly price range covering roughly 80% of Melbourne Airbnb listings falls between A$120 and A$300 (US$75 to US$190, EUR 70 to EUR 175), with prices below and above this band representing budget rooms and premium entire homes respectively.
The single biggest factor affecting Melbourne Airbnb nightly pricing is location relative to major event venues and public transport, with properties near Melbourne Park, the MCG, and tram lines commanding significant premiums.
By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in Melbourne.
How much do nightly prices vary by neighborhood in Melbourne in 2026?
As of the first half of 2026, Melbourne Airbnb nightly prices vary dramatically by neighborhood, ranging from around A$150 (US$95, EUR 88) in areas like Footscray and Preston to over A$260 (US$165, EUR 150) in premium locations like South Yarra and Southbank with waterfront views.
The three Melbourne neighborhoods with the highest average Airbnb nightly prices are South Yarra/Prahran (A$170 to A$260, US$110 to US$165, EUR 100 to EUR 150), Southbank (A$180 to A$260, US$115 to US$165, EUR 105 to EUR 150), and Fitzroy/Collingwood (A$160 to A$240, US$100 to US$155, EUR 95 to EUR 140), driven by lifestyle amenities and walkability.
The three Melbourne neighborhoods with the lowest average Airbnb nightly prices are Footscray (A$120 to A$160, US$75 to US$100, EUR 70 to EUR 95), Preston (A$130 to A$170, US$80 to US$110, EUR 75 to EUR 100), and outer Docklands fringe areas (A$140 to A$180, US$90 to US$115, EUR 80 to EUR 105), though guests still book here for value-focused stays and proximity to public transport.
What's the typical occupancy rate in Melbourne in 2026?
As of the first half of 2026, the typical occupancy rate for Melbourne Airbnb listings sits around 55% to 68%, with the variation depending on whether you measure all listings or only full-time actively hosted properties.
The realistic occupancy rate range covering most Melbourne Airbnb listings falls between 45% and 70%, with part-time listings and those using 30+ night minimums at the lower end and professionally managed entire homes at the higher end.
Melbourne's occupancy rates are broadly in line with the Australian national average for short-term rentals, which typically ranges from 55% to 70% depending on location and seasonality.
The single biggest factor driving above-average occupancy in Melbourne is dynamic pricing around major events, with hosts who adjust rates for the Australian Open, Formula 1 Grand Prix, and Melbourne Cup consistently outperforming those with static pricing.
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What's the average monthly revenue per listing in Melbourne in 2026?
As of the first half of 2026, the average monthly revenue per Melbourne Airbnb listing is approximately A$1,360 to A$4,700 (US$870 to US$3,000, EUR 800 to EUR 2,750), with the wide range reflecting everything from part-time spare rooms to full-time professionally managed entire homes.
The realistic monthly revenue range covering roughly 80% of Melbourne Airbnb listings falls between A$800 and A$5,500 (US$510 to US$3,500, EUR 470 to EUR 3,200), depending on property type, location, and availability settings.
Top-performing Melbourne Airbnb listings can achieve A$6,000 to A$10,000+ per month (US$3,800 to US$6,400, EUR 3,500 to EUR 5,850), particularly well-located 2 to 3 bedroom properties during high-demand periods. For example, a 2-bedroom Southbank apartment achieving 70% occupancy at A$220 per night would generate roughly A$4,600 monthly before expenses.
Finally, note that we give here all the information you need to buy and rent out a property in Melbourne.
What's the typical low-season vs high-season monthly revenue in Melbourne in 2026?
As of the first half of 2026, typical Melbourne Airbnb monthly revenue ranges from A$2,400 to A$3,200 (US$1,530 to US$2,040, EUR 1,400 to EUR 1,870) during low season to A$4,200 to A$6,000+ (US$2,680 to US$3,830, EUR 2,450 to EUR 3,500) during high season, assuming an actively hosted entire-place listing.
Low season for Melbourne Airbnb runs roughly from June to August (winter months), while high season peaks during January (Australian Open), March (Formula 1 Grand Prix), and November (Melbourne Cup Carnival), with summer months generally stronger due to school holidays and better weather.
What's a realistic Airbnb monthly expense range in Melbourne in 2026?
As of the first half of 2026, a realistic monthly expense range for operating a Melbourne Airbnb is A$900 to A$3,500 (US$575 to US$2,230, EUR 525 to EUR 2,050), scaling with property size from apartments at the lower end to detached houses at the higher end.
The single expense category representing the largest share of monthly costs for Melbourne Airbnb hosts is typically cleaning and turnover costs (A$300 to A$900 per month, US$190 to US$575, EUR 175 to EUR 525), especially for properties with frequent short stays and high guest turnover.
Melbourne Airbnb hosts should typically expect to spend 40% to 60% of gross revenue on operating expenses, including platform fees, cleaning, utilities, insurance, consumables, maintenance, and the 7.5% Victorian short stay levy.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Melbourne.
What's realistic monthly net profit and profit per available night for Airbnb in Melbourne in 2026?
As of the first half of 2026, a realistic monthly net profit for a well-managed Melbourne Airbnb is A$1,000 to A$1,800 (US$640 to US$1,150, EUR 585 to EUR 1,050) before mortgage and income tax, translating to roughly A$33 to A$60 profit per available night (US$21 to US$38, EUR 19 to EUR 35).
The realistic monthly net profit range covering most Melbourne Airbnb listings falls between A$500 and A$2,500 (US$320 to US$1,590, EUR 290 to EUR 1,460), with the variation driven by occupancy rates, expense management, and whether the host uses professional management services.
Melbourne Airbnb hosts typically achieve net profit margins of 30% to 45% of gross revenue after all operating expenses, with better-optimized listings reaching the higher end through efficient cleaning operations and smart pricing.
The break-even occupancy rate for a typical Melbourne Airbnb listing is around 35% to 45%, meaning hosts need to fill roughly 11 to 14 nights per month just to cover operating costs before generating any profit.
In our property pack covering the real estate market in Melbourne, we explain the best strategies to improve your cashflows.
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.
How competitive is Airbnb in Melbourne as of 2026?
How many active Airbnb listings are in Melbourne as of 2026?
As of the first half of 2026, Melbourne has approximately 20,000 to 35,000 active Airbnb listings depending on whether you count only Airbnb or include other platforms like Vrbo, with AirDNA tracking around 35,386 total short-term rental listings across the greater Melbourne metro area.
Melbourne's Airbnb supply has grown modestly over the past year, with listings increasing roughly 4% to 7% year-on-year, continuing a long-term growth trend that briefly paused during the pandemic but has since recovered to near pre-2020 levels.
Which neighborhoods are most saturated in Melbourne as of 2026?
As of the first half of 2026, the most saturated neighborhoods for Airbnb in Melbourne are Melbourne CBD, Southbank, and Docklands, where high-rise apartment towers create thousands of visually similar listings competing intensely on price, photos, and cancellation policies.
These neighborhoods have become saturated not just because of tourist demand but because investor-owned apartments are easy to set up as Airbnbs with minimal differentiation, and the concentration of buildings that still allow short-term rentals creates dense pockets of nearly identical supply.
Relatively undersaturated Melbourne neighborhoods offering better opportunities for new hosts include Richmond (near MCG with event demand but less apartment density), inner-north suburbs like Brunswick and Northcote (lifestyle appeal, fewer high-rises), and bayside areas like St Kilda and Elwood during off-peak months.
What local events spike demand in Melbourne in 2026?
As of the first half of 2026, the main local events that spike Melbourne Airbnb demand are the Australian Open (January 18 to February 1), Formula 1 Australian Grand Prix (March), Melbourne Cup Carnival (November), and major AFL finals (September to October), plus concerts and festivals throughout the year.
The typical percentage increase in bookings and nightly rates during these peak events ranges from 25% to 50% for well-located Melbourne properties, with some hosts near Melbourne Park or Albert Park Lake achieving even higher premiums during the Australian Open and Grand Prix.
Melbourne hosts should typically adjust their pricing and availability settings 2 to 4 weeks before major events, blocking off single-night gaps, increasing minimum stays to 3 to 4 nights, and setting dynamic pricing rules that automatically raise rates as event dates approach.
What occupancy differences exist between top and average hosts in Melbourne in 2026?
As of the first half of 2026, top-performing Melbourne Airbnb hosts achieve occupancy rates of 60% to 70%, significantly outperforming through professional photography, instant booking, rapid response times, and dynamic pricing that captures event-driven demand.
Average Melbourne Airbnb hosts typically achieve 50% to 55% occupancy, meaning top performers fill roughly 3 to 5 additional nights per month, which translates to A$500 to A$1,000+ extra revenue monthly before accounting for rate premiums.
New Melbourne Airbnb hosts typically take 6 to 12 months to reach top-performer occupancy levels, as building reviews (ideally 20+ with 4.8+ average rating), optimizing listing photos, and learning seasonal pricing patterns all require time and guest feedback.
We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in Melbourne.
Which price points are most crowded, and where's the "white space" for new hosts in Melbourne right now?
The nightly price range with the highest concentration of Melbourne Airbnb listings is A$140 to A$220 (US$90 to US$140, EUR 80 to EUR 130), representing the "mid-market entire apartment" segment where thousands of similar CBD and inner-city units compete fiercely.
The estimated "white space" opportunities for new Melbourne Airbnb hosts exist at two ends: budget-friendly private rooms under A$100 per night (US$64, EUR 58) for solo travelers, and premium 2 to 3 bedroom family-ready properties above A$280 per night (US$180, EUR 165) where supply is thinner.
Property characteristics that would allow a new Melbourne host to successfully compete in these underserved segments include family-friendly amenities (cots, high chairs, dedicated workspace), excellent transport access without being in oversaturated high-rise zones, and unique character properties like Victorian terraces rather than generic apartments.
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What property works best for Airbnb demand in Melbourne right now?
What bedroom count gets the most bookings in Melbourne as of 2026?
As of the first half of 2026, 1-bedroom properties get the most total bookings in Melbourne simply because they represent the largest share of supply (42% of listings), though 2-bedroom listings often achieve better revenue due to higher nightly rates and appeal to more traveler types.
The estimated booking rate breakdown by bedroom count in Melbourne shows 1-bedroom units at roughly 42% of supply and bookings, 2-bedroom at 30%, 3-bedroom at 15%, and 4+ bedroom properties at around 13%, with larger properties booking less frequently but at significantly higher rates.
One-bedroom properties perform well in raw booking volume because Melbourne attracts many solo business travelers and couples, while the inner-city apartment stock skews heavily toward compact layouts designed for the investor rental market.
What property type performs best in Melbourne in 2026?
As of the first half of 2026, the best-performing property type for Melbourne Airbnb is typically the 2-bedroom townhouse or terrace in an inner lifestyle suburb, offering a balance of space, character, and lower competition compared to generic high-rise apartments.
Occupancy rates across Melbourne property types show apartments achieving 50% to 60% (high supply, intense competition), townhouses and terraces achieving 55% to 65% (less competition, broader guest appeal), and detached houses achieving 45% to 60% (higher costs, location-dependent performance).
Townhouses and terraces outperform in Melbourne because they offer differentiation (character, outdoor space, parking) that generic apartments cannot match, while avoiding the owners corporation ban risks that affect many high-rise buildings in the CBD and Southbank.
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 Melbourne, 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 |
|---|---|---|
| State Revenue Office Victoria | Victoria's official tax authority that publishes and enforces the short stay levy rules that actually apply to Melbourne hosts. | We used it to confirm the 7.5% levy rate, what counts as a short stay (under 28 days), and principal place of residence exemptions. We then translated these rules into practical cost estimates for our profit modeling. |
| Consumer Affairs Victoria | Victoria's official regulator for owners corporations (strata) that explains building-level legal powers as they apply to apartments. | We used it to identify the biggest legal risk for Melbourne apartment Airbnbs: building bans. We incorporated this into our feasibility advice and location-selection guidance. |
| City of Melbourne | The City of Melbourne's official consultation channel for short-term accommodation policy and current STR prevalence data. | We used it to verify that no citywide cap is currently in force and to understand the geographic distribution of Melbourne's inner-city short-term rental stock. |
| Victorian Planning Authority | The Victorian Government's official planning portal explaining how land use rules and zoning work statewide. | We used it to frame the planning reality: certain zones and overlays can restrict what you can do with a property. We turned this into practical "check your zoning" advice. |
| Australian Taxation Office | Australia's official tax authority that sets the baseline rules for reporting rental income and claiming deductions. | We used it to explain income tax basics, build a realistic operating expense framework, and set appropriate record-keeping expectations for Melbourne hosts. |
| AirDNA | A widely used industry dataset providing transparent, trackable STR metrics including ADR, occupancy, supply counts, and bedroom mix. | We used it as the quantitative backbone for Melbourne's pricing, occupancy, supply scale, and property mix. We built our conservative profit model around these market averages. |
| Airbtics | An independent STR analytics platform tracking Airbnb listings globally since 2019 with consistent methodology. | We used it to cross-validate AirDNA figures on occupancy rates, annual revenue, and listing counts, ensuring our estimates reflect multiple data sources. |
| MadeComfy | Australia's largest professional short-term rental manager with direct operational data across thousands of properties. | We used their Greater Melbourne STR report to validate ADR trends, seasonality patterns, and professional management benchmarks against our other sources. |
| Reserve Bank of Australia | Australia's central bank and the primary source for the official cash rate that influences mortgage costs. | We used it to anchor our financing assumptions and provide context on the interest rate environment affecting leveraged Melbourne property investors. |
| Visit Victoria | Victoria's official state tourism body providing the authoritative guide to major events driving visitor demand. | We used it to identify reliable, repeatable demand spikes (Australian Open, Grand Prix, Melbourne Cup) and translate these into practical pricing and minimum-stay strategies. |
| Tourism Research Australia | The Australian Government's official tourism research body publishing audited visitor statistics. | We used it to anchor demand drivers (international trips, nights, spend) feeding Melbourne's accommodation market and explain the underlying tourism fundamentals. |
| Vic Department of Families, Fairness and Housing | A Victorian Government dataset providing official rental market conditions and benchmark long-term rent levels. | We used it to benchmark long-term rent alternatives and sanity-check whether Melbourne STR income premiums justify the extra operational work and volatility. |
| Airbnb Australia Tax Guide | A platform-published guide pointing hosts to their tax obligations, useful as a practical cross-check. | We used it as a secondary reference to validate our ATO-based interpretation of common host tax questions around income reporting and expense deductions. |
| Airbnb Help Center | Airbnb's official support documentation explaining how the platform handles Victorian levy collection and exemptions. | We used it to confirm that Airbnb automatically collects and remits the short stay levy for most hosts, simplifying compliance obligations. |
| Hospitable | A property management software provider publishing Melbourne market insights based on user data and industry analysis. | We used their Melbourne rental market analysis to cross-check seasonal trends, host demographics, and market recovery patterns post-pandemic. |
| Hostaway | A vacation rental software provider publishing detailed compliance guides based on official regulations. | We used their Victoria rules guide to verify our interpretation of levy calculations, registration requirements, and owners corporation powers. |
| PriceLabs | A dynamic pricing software provider with access to extensive Australian market data and booking behavior patterns. | We used their Australia market trends report to validate seasonality shifts, ADR pacing data, and competition intensity observations. |
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.
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