1. How much can you earn on Airbnb in Melbourne?

Based on Houst pricing data for two-bedroom properties across Melbourne's inner suburbs in 2026, monthly gross income at current occupancy rates:

• Fitzroy (VIC 3065): A$316/night ADR, 76% occupancy - ~A$7,245/month
• Melbourne CBD (VIC 3000): A$329/night ADR, 70% occupancy - ~A$6,909/month
• St Kilda (VIC 3182): A$280/night ADR, 71% occupancy - ~A$5,978/month
• Docklands (VIC 3008): A$271/night ADR, 73% occupancy - ~A$5,953/month
• South Yarra (VIC 3141): A$245/night ADR, 71% occupancy - ~A$5,228/month

Fitzroy leads the monthly income table despite a slightly lower ADR than the CBD, because its higher occupancy rate (76% vs 70%) generates more booked nights per month. A two-bedroom Fitzroy property at current rates generates approximately A$86,940 per year in gross income. South Yarra, the lowest of the five areas tracked, still generates around A$62,736 annually.

These figures are for a two-bedroom, one-bathroom property with a two-guest configuration. Larger properties and higher guest counts increase both ADR and annual yield.

The 180-night cap

Unhosted short-term lets in Victoria are capped at 180 nights per year - approximately 15 nights per month if spread evenly. The figures above assume 70-76% occupancy across all available nights, which would exceed 180 nights on an annualised basis. In practice, a professionally managed Melbourne property operating within the 180-night cap needs to optimise ADR more aggressively than an uncapped market to achieve the same annual income. Your management company should track your annual night count.

2. What affects your Airbnb income in Melbourne?

2.1 Location and neighbourhood

The data shows meaningful variation across Melbourne's inner suburbs. Fitzroy's combination of cafe culture, independent retail and proximity to the CBD makes it one of Melbourne's most in-demand short-let locations. The CBD commands the highest ADR at A$329/night, reflecting corporate and event-driven demand. St Kilda's beachfront location drives strong leisure demand, particularly in summer.

South Yarra sits at the lower end of the inner-suburb range despite its prestige reputation - the corporate and shopping-focused guest profile commands a lower premium than creative neighbourhoods like Fitzroy. Docklands attracts business travellers but its relative lack of street-level amenity caps ADR below other central locations.

2.2 Strata and owners corporation rules

From January 2025, owners corporations can ban short-term lets in their building by a 75% special resolution. This is the most significant compliance risk for Melbourne apartment hosts. Before listing any apartment property, confirm your building's owners corporation position. Properties in buildings that have passed or are considering such a resolution cannot operate as short-term lets, except for the owner's principal place of residence which is exempt.

2.3 The 180-night cap and levy compliance

Victoria's 180-night cap on unhosted lets and the 7.5% short-stay levy on all stays under 28 nights both affect income planning. The levy is charged to guests rather than deducted from host income, so it does not directly reduce your earnings. For OTA bookings, platforms collect it automatically. Your management company must handle direct booking levy remittance separately.

2.4 Property configuration and guest count

The figures above are based on a two-guest configuration. Increasing listed guest capacity to four increases ADR meaningfully - a two-bedroom Melbourne property listed for four guests typically achieves A$360-400/night in Fitzroy and the CBD. This single change can add A$500-800 per month to gross income at the same occupancy rate.

2.5 Seasonal demand

Melbourne's event calendar drives significant demand spikes: the Australian Open (January), Grand Prix (March), AFL Grand Final week (September/October) and the spring racing carnival (October/November) are the highest-demand periods. Properties near Melbourne Park, Albert Park and the CBD see the sharpest rate increases during these events. A management company with Melbourne-specific dynamic pricing will capture these windows.

3. How Melbourne compares to other Australian cities

Melbourne sits slightly below Sydney in monthly gross income but comfortably ahead of Brisbane, Perth and Gold Coast for inner-suburb properties.

• Sydney (Bondi) - ~A$12,559/month | A$598/night | 70% occupancy
• Sydney CBD - ~A$11,525/month | A$451/night | 85% occupancy
• Melbourne (Fitzroy) - ~A$7,245/month | A$316/night | 76% occupancy
• Melbourne CBD - ~A$6,909/month | A$329/night | 70% occupancy
• Melbourne (South Yarra) - ~A$5,228/month | A$245/night | 71% occupancy

Sydney's premium over Melbourne is significant - Bondi generates 73% more monthly income than Fitzroy for the same property configuration. The gap reflects Sydney's combination of coastal premium, international tourism concentration and extremely strong business travel demand.

Melbourne's advantage is lower property acquisition costs in comparable inner suburbs, which translates to stronger gross yields on investment even with lower absolute income figures.

4. How to maximise your Airbnb income in Melbourne

Check strata rules before anything else

If your property is in an apartment building, confirm your owners corporation position before listing. A management company that checks this upfront is essential - one that does not puts you at risk of a building ban after you have already committed to the short-let model.

Prioritise Fitzroy and inner-north for yield

The Houst data shows Fitzroy generating more monthly income than the CBD despite a lower ADR, because occupancy is higher. For investors considering Melbourne for short-let purposes, Fitzroy and the inner-north (Collingwood, Northcote) represent the strongest combination of ADR and occupancy in the dataset.

Increase guest capacity

Moving from a two-guest to a four-guest configuration on a two-bedroom Melbourne property typically increases ADR by 15-20%. A two-bedroom Fitzroy flat listed for four guests achieves approximately A$360-380/night versus A$316 for two guests. At 76% occupancy, that adds roughly A$900-1,200 per month.

Optimise for Melbourne's major events

The Australian Open, Grand Prix, AFL Grand Final week and spring racing carnival are the highest-premium periods in Melbourne's calendar. Nightly rates during these events can reach 50-100% above baseline for well-located properties. A management company with Melbourne-specific pricing data and event awareness will outperform one using generic national benchmarks.

Professional management

For owners who want to maximise income while handling the regulatory complexity - 180-night cap tracking, levy remittance, strata compliance - professional management covers all of this alongside pricing and guest operations. See the Melbourne Airbnb management page for details, and the best Airbnb management companies in Melbourne guide for a comparison of local operators.

To compare Melbourne management companies on fees, strata compliance and services, see the best Airbnb management companies in Melbourne guide. For a city-by-city overview, see the best Airbnb management companies guide.

5. FAQ

How much does the average Airbnb host earn in Melbourne?

Based on Houst pricing data, a two-bedroom Melbourne inner-suburb property earns approximately A$5,228-A$7,245 per month depending on location and occupancy. Fitzroy generates the highest monthly income at ~A$7,245, followed by the CBD at ~A$6,909. Annual gross income across the inner suburbs ranges from approximately A$62,736 to A$86,940.

Which Melbourne suburb earns the most on Airbnb?

Fitzroy tops the monthly income table in Houst's Melbourne dataset at approximately A$7,245/month for a two-bedroom property, due to a combination of strong ADR (A$316/night) and above-average occupancy (76%). The CBD has the highest ADR at A$329/night but slightly lower occupancy produces a marginally lower monthly figure.

Does the 180-night cap apply in Melbourne?

Yes. Unhosted short-term lets in Victoria are capped at 180 nights per year. Hosted lets (where the owner is present) are exempt. Stays of 28 nights or more do not count toward the cap. Your management company should track your annual night count and alert you when approaching the threshold.

Does the short-stay levy affect my income?

Victoria's 7.5% short-stay levy applies to all stays under 28 nights. For OTA bookings, platforms collect it automatically from guests - it does not reduce your revenue directly. For direct bookings outside a platform, you or your management company are responsible for collection and remittance.

Can my apartment building ban Airbnb in Melbourne?

From January 2025, yes. Owners corporations can ban short-term lets by passing a special resolution with 75% agreement. The owner's principal place of residence is exempt. Always confirm your building's owners corporation position before listing.

See also: Airbnb management fees guide and is Airbnb management worth it.

Data in this guide reflects 2026 Houst pricing tool data for two-bedroom, one-bathroom, two-guest properties. Actual earnings vary by property configuration, guest count and management approach. This is not financial advice.