The short answer depends heavily on the suburb, property type, and your management tolerance. Here is the suburb-by-suburb honest comparison for 2026.
Melbourne Income Comparison by Suburb
| Suburb | Property | Long-Term Annual | Airbnb Annual (75% occ.) | Winner |
|---|---|---|---|---|
| Northcote | 2-bed house | $28,600 ($550/wk) | $32,850 ($85/night) | Airbnb +$4,250 |
| St Kilda | Studio | $20,280 ($390/wk) | $35,588 ($130/night) | Airbnb +$15,308 |
| Southbank | 1-bed unit | $24,960 ($480/wk) | $29,200 ($107/night) | Airbnb +$4,240 |
| Docklands | 1-bed unit | $25,480 ($490/wk) | $27,375 ($100/night) | Airbnb +$1,895 |
| Preston | 2-bed unit | $22,880 ($440/wk) | $20,075 ($73/night) | Long-term +$2,805 |
Hidden Costs of Airbnb
- Airbnb service fee: 3% of booking
- Cleaning: $80-$150 per turnover
- Linen and consumables: $500-$1,000/year
- Higher insurance premium (need short-stay specific cover)
- Council short-stay registration (some councils require it)
- Property manager if remote: 20-25% of revenue
Victoria Regulatory Requirements
Victoria has limited formal regulation of short-stay beyond standard planning rules. Some municipalities (Melbourne CBD, Yarra, Port Phillip) are introducing registration requirements. Check your specific council before committing to a short-stay strategy.
Track your Airbnb vs long-term rental income with the Collings property platform: collings.com.au/portal
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