How much are the rents in Melbourne right now? (2026)

Last updated on July 3, 2026

Authored by the expert who managed and guided the team behind the Australia Property Pack

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We constantly update this blog post so Melbourne rent figures stay useful for buyers, landlords and investors in 2026.

Melbourne rents in 2026 are still high, but the market is now calmer than the very tight rental years after COVID.

The clearest pattern is that Melbourne apartments are doing better than houses, because many tenants are choosing smaller homes to stay close to jobs, universities and public transport.

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.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Melbourne. If you’d like to learn more about us, you can check our presentation page.

What are typical rents in Melbourne as of 2026?

What's the average monthly rent for a studio in Melbourne as of 2026?

As of 2026, the average monthly rent for a studio in Melbourne is about A$2,050, which is roughly US$1,350 or €1,250.

Most Melbourne studios rent for about A$1,730 to A$2,380 per month, which is roughly US$1,140 to US$1,570 or €1,060 to €1,450.

This range is mainly explained by location, because a studio in the Melbourne CBD, Southbank or Carlton usually costs more than a similar studio in Footscray, Preston, Reservoir or Clayton.

Sources and methodology: we used Homes Victoria rental reports, Domain and PropTrack. We started from Melbourne unit rents and adjusted down because studios are smaller than 1-bedroom apartments. We also checked our own Melbourne rental comparisons for inner-city and middle-ring suburbs.

What's the average monthly rent for a 1-bedroom in Melbourne as of 2026?

As of 2026, the average monthly rent for a 1-bedroom apartment in Melbourne is about A$2,300, which is roughly US$1,520 or €1,400.

Most Melbourne 1-bedroom apartments rent for about A$1,950 to A$2,600 per month, which is roughly US$1,290 to US$1,720 or €1,190 to €1,590.

The cheapest 1-bedroom rents are often found in Footscray, Reservoir, Preston and parts of Clayton, while the highest 1-bedroom rents are usually in the Melbourne CBD, Southbank, Docklands, South Yarra and East Melbourne.

Sources and methodology: we used Data Vic rental tables, Urban Property Australia and Domain. We placed 1-bedroom apartments below the all-unit median because 2-bedroom homes pull the unit average upward. We then checked our own suburb notes for CBD, Southbank, Docklands and lower-rent middle-ring areas.

What's the average monthly rent for a 2-bedroom in Melbourne as of 2026?

As of 2026, the average monthly rent for a 2-bedroom apartment in Melbourne is about A$2,700, which is roughly US$1,780 or €1,650.

Most Melbourne 2-bedroom apartments rent for about A$2,430 to A$3,470 per month, which is roughly US$1,600 to US$2,290 or €1,480 to €2,120.

The cheaper 2-bedroom apartment areas include Footscray, Brunswick, Preston and Clayton, while the most expensive 2-bedroom apartment areas are usually Southbank, Docklands, Richmond, South Yarra, St Kilda Road and East Melbourne.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Melbourne.

Sources and methodology: we used PropTrack, Homes Victoria and REIV. We put 2-bedroom homes above the Melbourne unit median because they are larger and serve couples, sharers and small families. We also compared this with our own rent checks in inner Melbourne and university-linked suburbs.

What's the average rent per square meter in Melbourne as of 2026?

As of 2026, the average apartment rent per square meter in Melbourne is about A$40 per month, which is roughly US$26 or €24.

Across Melbourne, a realistic range is about A$33 to A$60 per square meter per month, which is roughly US$22 to US$40 or €20 to €37.

Compared with Sydney, Melbourne rents per square meter are usually lower, but Melbourne is still more expensive than many smaller Australian capitals because jobs, universities and migration keep demand strong.

Rent per square meter in Melbourne usually rises above average when the property is near a train station, tram line, university, hospital, the CBD, Southbank, Docklands, South Yarra or a premium inner-city building.

Sources and methodology: we used PropTrack, Domain and Urban Property Australia. We divided typical monthly unit rent by common Melbourne apartment sizes of about 60 to 70 square meters. We then used our own local comparisons to separate CBD-style apartments from larger middle-ring homes.

How much have rents changed year-over-year in Melbourne in 2026?

As of 2026, average rents in Melbourne are up by about 3% year-over-year, with units rising faster than houses.

The main reason is simple: Melbourne renters still face limited supply, but many tenants are now choosing apartments because detached houses have become harder to afford.

This is slower than the very sharp rent growth seen in the previous post-COVID period, when low vacancies and returning migration pushed Melbourne rents up much faster.

Sources and methodology: we used PropTrack, Domain and REIV. We used PropTrack for the 2026 growth split between houses, units and all dwellings. We also checked our own Melbourne rent model because asking rents and bond rents do not always move at the same speed.

What's the outlook for rent growth in Melbourne in 2026?

As of 2026, Melbourne rents are likely to grow by about 3% to 5% over the year, with apartments probably doing better than houses.

The main drivers are population growth, returning international students, CBD jobs, tight vacancies and a slow supply response from new housing approvals.

The Melbourne neighborhoods most likely to see stronger rent growth are Southbank, Docklands, Carlton, Parkville, Clayton, Caulfield, Footscray, Richmond and South Yarra.

The main risks are tenant affordability, slower migration, more new apartments being completed, or landlords accepting smaller increases to avoid longer vacancies.

Sources and methodology: we used Domain forecasts, ABS population data and ABS building approvals. We treated forecasts as forecasts, not as confirmed rent evidence. We also used our own suburb demand scoring for student, transport and inner-city renter demand.

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Which neighborhoods rent best in Melbourne as of 2026?

Which neighborhoods have the highest rents in Melbourne as of 2026?

As of 2026, the top high-rent Melbourne areas are Toorak for houses at about A$5,000 or more per month, South Yarra at about A$3,200 to A$4,500 per month for good apartments, and Southbank at about A$3,000 to A$4,300 per month for well-located apartments, equal to roughly US$2,000 to US$3,300 or €1,830 to €3,050 depending on the property.

These Melbourne neighborhoods command premium rents because Toorak offers luxury family homes, while South Yarra and Southbank offer lifestyle, views, transport, restaurants, jobs and fast access to the CBD.

The usual tenants in these high-rent Melbourne areas are corporate renters, expats, high-income professionals, downsizers, wealthy families and renters who want a premium location without buying.

By the way, we’ve written a blog article detailing Sources and methodology: we used REIV, Domain and Homes Victoria. We separated luxury house markets from apartment markets because Toorak and Southbank do not rent in the same way. We also used our own neighborhood notes to identify where high rents are supported by real tenant demand.

Where do young professionals prefer to rent in Melbourne right now?

The top Melbourne neighborhoods for young professionals are Richmond, South Yarra and Collingwood, with Fitzroy, Brunswick, Footscray, Southbank and the CBD also very strong.

Young professionals in these Melbourne neighborhoods usually pay about A$2,300 to A$3,250 per month, which is roughly US$1,520 to US$2,150 or €1,400 to €1,980.

These renters choose these areas because Melbourne tram lines, train stations, bars, gyms, cafes, nightlife, offices and coworking spaces are close enough to make daily life easy.

By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Melbourne.

Sources and methodology: we used Domain, Data Vic and PropTrack. We matched rent levels with Melbourne lifestyle and transport patterns. We also used our own demand checks around Swan Street, Chapel Street, Smith Street, Sydney Road and Footscray Station.

Where do families prefer to rent in Melbourne right now?

The top Melbourne family-rental areas are Camberwell, Glen Iris and Bentleigh, while Balwyn, Kew, Hawthorn, Mount Waverley, McKinnon and Doncaster are also popular with families.

Families renting 2-bedroom to 3-bedroom homes in these Melbourne neighborhoods usually pay about A$3,000 to A$4,800 per month, which is roughly US$1,980 to US$3,170 or €1,830 to €2,930.

These neighborhoods attract families because they offer schools, parks, larger homes, safer streets, train access and a more settled feel than the high-rise inner-city market.

Important school options near these family areas include Camberwell High School, Glen Waverley Secondary College, McKinnon Secondary College, Balwyn High School and several private schools in the inner east.

Sources and methodology: we used REIV, ABS population data and Homes Victoria. We focused on family demand, school access and larger homes rather than only on apartment rents. We also used our own suburb profiles for eastern, south-eastern and bayside family demand.

Which areas near transit or universities rent faster in Melbourne in 2026?

As of 2026, the fastest Melbourne rental areas near transit or universities are Carlton and Parkville, Clayton and Caulfield, because these suburbs sit close to major campuses and strong public transport.

In these high-demand Melbourne areas, good rentals can lease in about 10 to 14 days, while a normal well-priced Melbourne rental usually takes about 18 to 24 days.

A home within easy walking distance of a Melbourne university, train station or tram corridor can often earn a premium of about A$130 to A$430 per month, which is roughly US$85 to US$285 or €80 to €260.

Sources and methodology: we used Department of Education student data, Domain and Data Vic. We linked rental speed to student demand, vacancy pressure and transport access. We also used our own Melbourne campus map covering University of Melbourne, RMIT, Monash, Swinburne, La Trobe and Victoria University.

Which neighborhoods are most popular with expats in Melbourne right now?

The top Melbourne neighborhoods for expats are Southbank, Docklands and the CBD, with South Yarra, St Kilda, Richmond, Carlton, Brunswick, Brighton and Port Melbourne also popular.

Expats in these Melbourne neighborhoods usually pay about A$2,400 to A$4,300 per month, which is roughly US$1,580 to US$2,840 or €1,460 to €2,620.

These areas work well for expats because furnished apartments, short commutes, restaurants, international schools, waterfront living, trams and easy CBD access reduce the stress of moving to Melbourne.

The most visible expat groups in Melbourne include people from India, China, the United Kingdom, New Zealand, Southeast Asia and Europe, although exact mixes vary a lot by suburb and visa type.

And if you are also an expat, you may want to read our Sources and methodology: we used ABS population data, Department of Education and City of Melbourne forecasts. We matched expat demand with furnished stock, CBD access and university demand. We also used our own local notes to separate corporate expat areas from student-heavy areas.

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Who rents, and what do tenants want in Melbourne right now?

What tenant profiles dominate rentals in Melbourne?

The top Melbourne tenant profiles are students and young professionals, migrant households and relocating workers, and families who rent because buying is too expensive.

A practical 2026 estimate is that students and young professionals represent about 35% of Melbourne rental demand, migrant and relocating households about 30%, and families about 25%, with the rest made up of downsizers, separated households and short-stay-to-long-stay movers.

Students and young professionals usually want studios, 1-bedroom homes or 2-bedroom shares, migrant households often want 1-bedroom or 2-bedroom apartments near jobs and transport, and families usually want 2-bedroom to 4-bedroom homes near schools and parks.

If you want to optimize your cashflow, you can read our Sources and methodology: we used ABS population data, Department of Education and City of Melbourne. We treated tenant profiles as estimates because public datasets do not label every renter by motive. We also used our own leasing-pattern analysis across inner-city, university and family suburbs.

Do tenants prefer furnished or unfurnished in Melbourne?

In Melbourne, about 75% to 80% of long-term tenants prefer unfurnished rentals, while about 20% to 25% prefer furnished rentals.

A furnished Melbourne apartment can often earn A$215 to A$430 extra per month, which is roughly US$140 to US$285 or €130 to €260, if the furniture is modern and the location suits mobile tenants.

Furnished rentals work best for international students, expats, corporate renters, relocating workers and short-term arrivals in the CBD, Southbank, Docklands, Carlton, Parkville, Clayton, Caulfield and St Kilda.

Sources and methodology: we used Domain, Department of Education and City of Melbourne. We estimated furnished demand from tenant type and inner-city listing comparisons. We also used our own checks because furnished premiums are rarely reported cleanly in official datasets.

Which amenities increase rent the most in Melbourne?

The five amenities that usually increase Melbourne rent the most are secure parking, balcony or outdoor space, split-system heating and cooling, a study nook or second work area, and a modern kitchen or bathroom.

In Melbourne, secure parking can add about A$215 to A$345 per month, a good balcony about A$130 to A$260, heating and cooling about A$130 to A$260, a study nook about A$130 to A$260, and a clean renovation about A$260 to A$520, which equals roughly US$85 to US$345 or €80 to €320 depending on the item.

In our property pack covering the real estate market in Melbourne, we cover what are the best investments a landlord can make.

Sources and methodology: we used Consumer Affairs Victoria, Domain and PropTrack. We compared rent gaps between similar Melbourne listings with and without each feature. We also used our own landlord ROI notes to avoid treating every upgrade as equally valuable.

What renovations get the best ROI for rentals in Melbourne?

The five Melbourne rental renovations with the best ROI are fresh paint, durable flooring, split-system heating and cooling, modern blinds and lighting, and simple kitchen or bathroom refreshes.

Typical Melbourne costs are about A$2,000 to A$5,000 for paint, A$3,000 to A$8,000 for flooring, A$2,000 to A$4,000 for a split system, A$1,000 to A$3,000 for blinds and lighting, and A$5,000 to A$15,000 for a light kitchen or bathroom refresh, with possible rent gains of about A$85 to A$520 per month, or roughly US$55 to US$345 and €50 to €320.

Melbourne landlords should usually avoid luxury finishes, designer appliances, expensive custom furniture and major structural work unless the property is in a premium market such as Toorak, Brighton, South Yarra, East Melbourne or bayside Melbourne.

Sources and methodology: we used Consumer Affairs Victoria, Domain and REIV. We focused on upgrades tenants notice and rules landlords must meet. We also used our own Melbourne renovation notes to separate practical upgrades from overcapitalisation.

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How strong is rental demand in Melbourne as of 2026?

What's the vacancy rate for rentals in Melbourne as of 2026?

As of 2026, a practical vacancy-rate estimate for Melbourne rentals is about 2.0%.

Across Melbourne, vacancy can sit closer to 1.0% to 1.5% in tight student and inner-city pockets, while some outer or overpriced homes may sit closer to 2.5% to 3.0%.

This is still low compared with a balanced rental market, so Melbourne landlords have pricing power, but less power than during the most severe rental squeeze of 2022 and 2023.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Melbourne.

Sources and methodology: we used SQM Research, REIV and Domain. We did not pick one vacancy number blindly because SQM and REIV use different methods. We used our own midpoint estimate to reflect both online listings and agent-managed rental stock.

How many days do rentals stay listed in Melbourne as of 2026?

As of 2026, a normal well-priced rental in Melbourne usually stays listed for about 18 to 24 days.

The realistic range is about 10 to 14 days for strong inner-city, student or transport-rich rentals, and 30 days or more for overpriced homes, outer houses or properties with poor presentation.

This is slightly slower than one year earlier in the tightest pockets, because tenants are more price-sensitive in 2026 and landlords cannot raise rents as aggressively as before.

Sources and methodology: we used Domain, SQM Research and PropTrack. Public rental days-on-market data is less consistent than rent and vacancy data. We therefore combined vacancy, listing pressure and our own suburb-level leasing assumptions.

Which months have peak tenant demand in Melbourne?

The peak months for Melbourne tenant demand are January, February and March, with a smaller second peak in July and August.

This seasonal pattern is driven by university starts, international student arrivals, graduate jobs, work relocations and families trying to move before the school year settles.

The quietest Melbourne rental months are usually late May, June and parts of November and December, when fewer tenants want the stress of moving.

Sources and methodology: we used Department of Education, Domain and City of Melbourne. We linked rental seasonality to Melbourne universities and job-moving periods. We also used our own leasing calendar because local timing matters more than national averages.

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What will my monthly costs be in Melbourne as of 2026?

What property taxes should landlords expect in Melbourne as of 2026?

As of 2026, a typical Melbourne apartment landlord might pay about A$1,500 to A$3,500 per year in Victorian land tax if taxable land value is above the threshold, which is roughly US$990 to US$2,310 or €915 to €2,135.

The realistic annual property-tax range is about A$0 for some smaller or exempt holdings to more than A$10,000 for higher-land-value homes, equal to roughly US$0 to more than US$6,600 or €0 to more than €6,100.

Victorian land tax is calculated on taxable land value, not the full property price, and the rate increases as land value rises, while absentee owners can face an extra surcharge.

Please note that, in our property pack covering the real estate market in Melbourne, we cover what exemptions or deductions may be available to reduce property taxes for landlords.

Sources and methodology: we used State Revenue Office land tax rates, State Revenue Office absentee-owner surcharge and ATO rental guidance. We separated Victorian land tax from federal income tax because they are different costs. We also used our own ownership-cost model for apartments and houses.

What utilities do landlords often pay in Melbourne right now?

In Melbourne, landlords usually pay council rates, owners corporation fees, building insurance, fixed water and sewerage charges, and any utilities that are not separately metered.

A typical Melbourne landlord might pay about A$150 to A$300 per month for council rates, A$200 to A$600 for owners corporation fees, A$60 to A$150 for insurance, and A$40 to A$90 for fixed water charges, equal to roughly US$25 to US$400 or €25 to €365 depending on the item.

The common Melbourne practice is that tenants pay separately metered electricity, gas, water usage and internet, while landlords pay fixed ownership costs and services that cannot be fairly measured for one renter.

Sources and methodology: we used Consumer Affairs Victoria utilities rules, State Revenue Office and ATO rental guidance. We separated tenant usage costs from landlord ownership costs. We also used our own Melbourne operating-cost assumptions for apartments with owners corporation fees.

How is rental income taxed in Melbourne as of 2026?

As of 2026, Melbourne rental income is generally taxed by the Australian Taxation Office as assessable income at the owner’s marginal tax rate after allowable rental deductions.

Main deductions can include loan interest, repairs, property management fees, council rates, insurance, water charges, land tax, owners corporation fees, depreciation and capital works where the ATO rules allow them.

Common Melbourne-specific mistakes include ignoring Victorian land tax, missing the absentee-owner surcharge, confusing repairs with improvements, and forgetting that owners corporation fees can change the net yield sharply.

We cover these mistakes, among others, in our Sources and methodology: we used ATO Rental Properties Guide 2026, State Revenue Office land tax rates and State Revenue Office absentee-owner surcharge. We treated tax as general guidance, not personal tax advice. We also used our own net-yield model to show why Melbourne gross rent can be misleading.

infographics rental yields citiesMelbourne

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 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 used	Why this source is reliable	How we used this source
Homes Victoria / DFFH Rental Report	This is the Victorian Government’s official private-rental dataset.	We used it as the main anchor for bond-based Melbourne rent levels. We preferred it for suburb and bedroom estimates because it is based on Residential Tenancies Bond Authority bond lodgements.
Data Vic rental report tables	This open-data source republishes the Victorian Government rental tables.	We used it to verify the structure of the rental report data. We treated it as more stable than listing portals for local rent levels.
Domain March 2026 Rental Report	Domain is one of Australia’s major property portals and publishes regular rental-market research.	We used it to cross-check advertised asking rents and vacancy pressure. We relied on it for 2026 momentum because asking rents can move before bond data.
Domain 2026 Forecast Report	This source reports Domain’s own rental forecast for Australian capital cities.	We used it for Melbourne’s 2026 rent-growth outlook. We treated it as a forecast and not as proof of actual rent increases.
PropTrack / realestate.com.au March 2026 rental prices	PropTrack is REA Group’s data arm and uses realestate.com.au listing data.	We used it to validate March 2026 rents for houses, units and all dwellings. We relied on it for the important split showing Melbourne units above houses.
REIV Residential Rentals	REIV is the main Victorian real-estate industry body and tracks rents and vacancy.	We used it to cross-check metropolitan Melbourne rent and vacancy levels. We treated its vacancy rate as a useful agency-survey comparison to SQM.
SQM Research vacancy report, May 2026	SQM is widely cited in Australia for vacancy and asking-rent data.	We used it for May 2026 vacancy and listing-based tightness. We cross-checked it with REIV because vacancy methods differ.
ABS Regional Population 2024-25	ABS is Australia’s national statistics agency.	We used it to explain demand pressure from Greater Melbourne population growth. We used net overseas migration as a demand-side input for rental demand.
ABS Building Approvals April 2026	ABS is the official source for Australian dwelling approvals.	We used it to judge whether new supply could ease Melbourne rent pressure. We treated approvals as a future supply signal, not as immediate rental stock.
Victorian Housing Statement	This is the Victorian Government’s official housing-supply policy statement.	We used it to frame long-term housing-supply policy. We did not assume the target is already being delivered in the rental market.
State Revenue Office Victoria land tax rates	The State Revenue Office is the official Victorian tax authority.	We used it for 2026 landlord land-tax estimates. We separated general land tax from absentee-owner surcharge exposure.
State Revenue Office absentee owner surcharge	This is the official source for Victoria’s absentee-owner surcharge rules.	We used it to explain foreign or overseas-owner tax risk. We flagged it because many foreign investors miss this cost.
ATO Rental Properties Guide 2026	The ATO is Australia’s federal tax authority.	We used it for rental-income tax treatment and deductions. We treated it as general tax guidance, not personal tax advice.
Consumer Affairs Victoria minimum standards	This is the official Victorian rental-regulator guidance.	We used it to identify compliance-driven rental upgrades. We linked renovation ROI to legal minimum standards and tenant comfort.
Consumer Affairs Victoria utilities rules	This is the official source for landlord and tenant utility-payment rules in Victoria.	We used it to estimate which utilities Melbourne landlords usually pay. We separated separately metered usage from fixed owner charges.
Australian Department of Education international student data	This is the official federal source for international student enrolment data.	We used it to support the student-renter demand story. We applied it mainly to Carlton, Parkville, the CBD, Clayton, Caulfield, Hawthorn and Footscray.