If you’re looking for the high rental yield suburbs Victoria has for investors like you, you’ve come to the right place. We have here a list of some of the suburbs that you can consider for your investment plans.
Now is a great time to explore opportunities that offer solid cash flow and tenant demand. Property prices are stabilising and rental prices are on the rise across many regions. This is why savvy investors are increasingly turning to Victoria suburbs with high rental returns to balance their portfolios.
From affordable country towns to student-filled inner-city suburbs, Victoria offers a diverse range of profitable options for investors in 2025.
What Is a High Rental Yield and Why Does It Matter?
Rental yield is a key metric used by property investors to measure how much income a property generates in comparison to its purchase price. It’s often expressed as a percentage – typically a gross yield calculated before expenses or a net yield which accounts for outgoings like maintenance and rates.
Suburbs with higher yields are often favoured by investors seeking positive cash flow or aiming to cover their mortgage with rental income. While capital growth is important for long-term wealth building, high-yield suburbs can help investors grow their portfolios sooner or support a more sustainable income stream.
Top High Rental Yield Suburbs Victoria: Regional (2025)
Victoria’s regional areas continue to deliver strong rental returns, especially in towns where prices remain low but tenant demand is steady. Below are some of the most profitable suburbs in Victoria for rentals outside the metro area:
1. Ouyen (3490) – 7.7% Gross Yield
With a median house price of just $236,250 and weekly rents averaging $330, Ouyen stands out for investors seeking affordability and high yield. Located in the Rural City of Mildura, this agricultural hub benefits from steady demand driven by seasonal and permanent workers in the grain farming sector.
2. Warracknabeal (3393) – 6.8% Gross Yield
This Wimmera-region town has become a reliable performer for yield-focused investors. With a median house price of $200,000 and median rents of $315 per week, Warracknabeal is supported by essential infrastructure, including schools, hospitals, and retail services that keep tenant demand consistent.
3. Stawell (3380) – 6.3% Gross Yield
Known for its active gold mining industry, Stawell offers a mix of affordability and long-term stability. The median house price here is around $321,250, with rents sitting at $400 per week. It’s a great option for those looking for the best investment suburbs in Victoria that also offer a relaxed lifestyle and community feel.
Top High Rental Yield Suburbs Victoria: Greater Melbourne (2025)
Rental yields in Melbourne’s metro area are also on the rise, particularly for units in well-located suburbs near universities, the CBD, or employment hubs. These are ideal for investors targeting young professionals and students.
roperty Prices
1. Carlton (3053) – 7.5% Gross Yield
With its close proximity to the University of Melbourne and RMIT, Carlton is a perennial favourite for renters. Units in this suburb average around $416,000, while rents have reached $550 per week. This strong return makes Carlton one of the best investment suburbs in Victoria for consistent tenant demand.
2. Notting Hill (3168) – 7.7% Gross Yield
Notting Hill may not be as well-known as other suburbs, but it packs a punch for investors. It’s located near Monash University and benefits from high rental competition among students and young professionals. With a median unit price of $352,940 and rents averaging $540 per week, yields are among the highest in metro Melbourne.
3. Melbourne CBD (3000) – 7.7% Gross Yield
Despite higher property prices (median unit price of $577,000), the city’s rental market remains strong, with weekly rents averaging $650. With consistent demand from professionals, international students, and city dwellers, the CBD is among the most profitable suburbs in Victoria for rentals, especially in the apartment market.
Co-Living Homes: A Strategy for Bigger Returns
If you’re looking to boost rental income beyond standard leasing, co-living properties are a compelling option. By converting an existing home or building a new dwelling designed for multiple tenants, investors can generate significantly higher weekly returns. Instead of renting a house to one tenant for $500 per week, co-living setups can bring in $2100 or more by renting each room individually.
Some of the best suburbs in Victoria for co-living investments in 2025 include:
- Carlton (3053) – Close to the University of Melbourne and RMIT, ideal for student co-living.
- Notting Hill (3168) – Near Monash University, offering strong demand for rooming-style accommodation.
- Ouyen (3490) – A regional hub for agricultural workers, where shared housing can meet rising demand.
Whether you choose to retrofit an older home or construct a purpose-built co-living property, these neighbourhoods offer excellent potential for increased yields with the right planning and compliance.
High Rental Yield Suburbs Victoria: Best Investment Opportunities
Whether you’re targeting Victoria suburbs with high rental returns for positive cash flow or looking for the most profitable suburbs in Victoria for rentals and co-living spaces, the 2025 landscape offers a wide selection of opportunities.
Want to learn more about these options? Don’t hesitate to contact us and we will gladly show INVIDA can help you find the high rental yield suburbs Victoria has to offer and how to start investing in co-living homes.
