Melbourne’s short-stay market has recovered strongly since 2022. Average Airbnb occupancy in inner Melbourne sits at 68-72% with average nightly rates of $180-$320 depending on suburb, property type and seasonality. Here is how to calculate your potential Airbnb profit before you invest.
Melbourne Airbnb Revenue Estimate by Suburb 2026
| Suburb | Avg Nightly Rate | Avg Occupancy | Annual Revenue Est. | Long-Term Alt. |
|---|---|---|---|---|
| St Kilda | $280 | 74% | $75,580 | $52,000 |
| Fitzroy | $260 | 69% | $65,481 | $47,840 |
| Northcote | $240 | 65% | $56,940 | $43,680 |
| Richmond | $250 | 68% | $62,050 | $46,280 |
| Brunswick | $220 | 62% | $49,753 | $41,600 |
Airbnb Profit Formula
Annual Revenue = Nightly Rate x Occupancy Rate x 365
Net Profit = Annual Revenue – Platform Fees (15%) – Cleaning ($80/stay) – Rates, Insurance and Maintenance ($8,000-$12,000/year)
Frequently Asked Questions
Is Airbnb more profitable than long-term rental in Melbourne?
In high-demand suburbs, Airbnb generates 20-45% more gross revenue than long-term rental. However, after accounting for platform fees, cleaning, higher maintenance and vacancy between bookings, net returns are typically 10-25% above long-term rental in peak suburbs.
What is the Airbnb occupancy rate in Melbourne in 2026?
Melbourne’s average inner-suburb Airbnb occupancy rate is 68-72% in 2026, with peak summer and events-season occupancy reaching 85-92% in well-managed listings.
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