The Melbourne Airbnb market

Melbourne draws guests from across the world year-round. The calendar of major events drives consistent demand spikes: the Australian Open (January), the Formula 1 Grand Prix (March), AFL finals season (September) and the Melbourne Cup (November). Outside the events calendar, the CBD, South Yarra and Southbank attract steady corporate and leisure visitors throughout the year.

Average earnings for a professionally managed two-bedroom property in Melbourne run at approximately A$333 per night at 70% occupancy. On a monthly basis that equates to roughly A$7,000 before management fees. Melbourne's event-driven demand structure means income is not evenly distributed across months, but annual totals are strong.

Unlike London or Paris, Melbourne has no night cap on short-term lets. You can let your property year-round on Airbnb without a mandatory night limit. The key regulatory considerations are the 7.5% short-stay levy introduced in January 2025 and the ability of Owners Corporations to restrict short-term letting in strata buildings.

What you can earn from Airbnb in Melbourne

Earnings depend on property size, location, presentation and management quality. These are realistic monthly estimates for a well-managed property based on current Houst performance data:

• Studio or one-bedroom: approximately A$3,500-5,000/month
• Two-bedroom: approximately A$6,500-8,500/month
• Three-bedroom: approximately A$9,000-12,000/month

At A$333 average nightly rate and 70% occupancy, a two-bedroom generates roughly A$7,000 gross per month. Strong events periods — Australian Open, Grand Prix, AFL finals — push rates and occupancy significantly higher. January and March are typically the strongest months; June and July are the quietest.

For a detailed breakdown by bedroom count and suburb, the Melbourne Airbnb income guide covers the full data.

Melbourne Airbnb rules and the 7.5% levy

Melbourne's regulatory environment changed significantly in January 2025. There are three areas every host needs to understand.

The 7.5% short-stay levy. From 1 January 2025, a 7.5% levy applies to all short-stay accommodation bookings in Victoria. This is collected by the platform (Airbnb, Booking.com) on behalf of the state government and remitted automatically. Hosts do not need to manage the collection, but the levy reduces net income by 7.5% compared to pre-2025 figures. Factor this into any income projections.

Owners Corporation restrictions. If your property is in a strata building, your Owners Corporation (OC) may have the power to ban or restrict short-term letting. Under the Owners Corporations Amendment Act 2021, OCs can pass by-laws restricting short-stay letting with a 75% majority vote. Check your OC rules before listing. A ban by the OC overrides your right to list regardless of state-level rules.

State registration. Victoria requires short-stay accommodation providers to register with Consumer Affairs Victoria. The registration process is straightforward but mandatory. Unregistered hosts risk fines.

The full breakdown of Melbourne's short-let rules, including the levy, OC by-laws and registration steps, is covered in the Melbourne short-term rental rules guide.

Best areas for Airbnb in Melbourne

Location drives income more than almost any other factor. These are Melbourne's strongest short-let areas.

CBD and Melbourne Central. The highest-ADR zone. Walking distance to Federation Square, Flinders Street station and the main commercial and cultural precincts. Demand is strong year-round from both leisure and corporate guests.

South Yarra and Toorak. Upmarket suburbs with strong corporate and weekend leisure demand. Properties here typically achieve above-average rates and attract longer average stays.

Southbank and Docklands. High corporate midweek demand driven by proximity to the financial district and the Convention and Exhibition Centre. Event-period rates spike strongly during major CBD events.

St Kilda. The primary leisure tourism area. Strong beach-season demand from November to March and a consistent arts and nightlife scene. Occupancy is more seasonal than the CBD but peak-period rates are high.

Fitzroy and Collingwood. Popular with creative sector visitors and domestic leisure guests. Independent food, bar and arts scenes generate strong weekend demand. Good occupancy year-round.

Prahran and Windsor. Boutique-feel suburbs with a mix of leisure and corporate guests. Strong occupancy and solid rates, particularly for well-presented one and two-bedroom properties.

Getting started and managing your Melbourne Airbnb

Listing setup. Professional photography matters more in Melbourne than in most Australian cities given the volume of well-presented competition. A strong title, detailed description and complete amenities listing all affect search ranking and booking rate on the platform.

Pricing for events. The Melbourne events calendar is the single biggest lever for annual income. Properties priced dynamically around the Australian Open, Grand Prix, AFL finals and Melbourne Cup can generate a significant share of annual income in a handful of peak weeks. Static pricing leaves substantial revenue on the table.

The 7.5% levy in your calculations. At A$333 ADR and 70% occupancy, the levy costs approximately A$525 per month on a two-bedroom. Build this into your net income figure when assessing the return on professional management.

Self-managing vs professional management. Self-managing a Melbourne Airbnb requires regular attention to guest communication, pricing, cleaning coordination and platform management. For owners who want the income without the workload, professional management handles this end-to-end.

The best Airbnb management companies in Melbourne covers the main options with a direct comparison, including how each handles the levy and OC compliance.

Houst manages properties across central Melbourne and the inner suburbs. For a personalised estimate of what your property could earn, see the Melbourne Airbnb management page.

Frequently asked questions

How much can you earn from Airbnb in Melbourne?

A professionally managed two-bedroom earns approximately A$6,500-8,500 per month at current ADR and occupancy. A one-bedroom earns approximately A$3,500-5,000 per month. The 7.5% levy applies to gross booking revenue. Earnings vary significantly with events calendar, location and management quality.

What is the 7.5% short-stay levy in Melbourne?

A state government levy on short-stay accommodation bookings in Victoria, effective from 1 January 2025. It is 7.5% of the booking value, collected automatically by Airbnb and Booking.com. Hosts do not collect or remit it directly, but it reduces net booking revenue and should be factored into income projections.

Can my Owners Corporation stop me using Airbnb in Melbourne?

Yes. Under Victorian law, an Owners Corporation can pass a by-law restricting short-term letting in a strata building with a 75% majority vote. If such a by-law exists in your building, you cannot list on Airbnb regardless of state rules. Check your OC rules before listing.

What is the best area in Melbourne for Airbnb?

The CBD achieves the highest ADR. Southbank and South Yarra have strong corporate demand. St Kilda leads for leisure guests. Fitzroy and Collingwood suit creative and domestic leisure travellers. The best area depends on your property type and target guest.

Do I need to register to run an Airbnb in Melbourne?

Yes. Victorian law requires short-stay accommodation providers to register with Consumer Affairs Victoria. The process is straightforward but hosting without registration risks fines.