Melbourne’s northern suburbs offer some of the highest rental yields in metro Melbourne — combining affordable entry prices with strong tenant demand from university students, young professionals and families. Here are the highest-yield suburbs in Melbourne’s north in 2026, ranked by gross unit yield.
Highest Rental Yield Suburbs Melbourne North 2026
| Suburb | Unit Median | Weekly Rent | Gross Yield | Vacancy Rate | GeeVee Score |
|---|---|---|---|---|---|
| Reservoir | $440,000 | $515/wk | 6.10% | 1.1% | 8.9/10 |
| Preston | $520,000 | $480/wk | 4.80% | 1.2% | 8.7/10 |
| Coburg | $550,000 | $435/wk | 4.10% | 1.3% | 8.0/10 |
| Fawkner | $420,000 | $390/wk | 4.83% | 1.4% | 7.3/10 |
| Coburg North | $480,000 | $415/wk | 4.49% | 1.3% | 7.6/10 |
| Heidelberg | $530,000 | $415/wk | 4.07% | 1.2% | 8.1/10 |
| Bundoora | $450,000 | $400/wk | 4.62% | 1.5% | 7.4/10 |
Why Melbourne’s North Delivers Strong Yields
Melbourne’s northern suburbs benefit from four yield drivers: affordable entry prices relative to the inner ring, strong tenant demand from La Trobe University (Bundoora campus, 30,000 students), the Austin Hospital and Mercy Hospital precinct (Heidelberg), and gentrification-driven rental demand spillover from Northcote through Thornbury, Preston and Reservoir.
Reservoir — Melbourne North’s Yield Leader
Reservoir is consistently Melbourne’s highest-yield investment suburb in the inner-north corridor. At $440,000 median unit price and $515/wk weekly rent, Reservoir delivers a 6.10% gross yield — the highest in Melbourne’s north and competitive with outer-suburban markets that carry higher vacancy risk. Reservoir’s vacancy rate of 1.1% (June 2026, CRM brain) means your property is almost never empty.
Frequently Asked Questions
What is a good rental yield in Melbourne’s north in 2026?
A gross rental yield above 4% is considered good for Melbourne’s northern suburbs in 2026. Reservoir’s 6.10% unit yield is exceptional. Net yields (after management fees, rates, insurance and maintenance) will typically be 1.5-2% lower than gross yield.
Should I buy a house or unit for yield in Melbourne’s north?
Units deliver significantly higher yields than houses in Melbourne’s north. The yield gap between houses and units in Reservoir is approximately 4.7 percentage points (6.10% unit vs 1.4% house). For pure yield maximisation, units are the better choice. For capital growth, houses on land outperform over the long term.
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