Blackburn rental yield for houses currently sits at approximately 1.3% gross based on a median weekly rent of $411 and a median sale price of $1.67 million, while units deliver a notably stronger gross yield of around 2.0% against a median sale price of $1.05 million. These figures reflect a blue-chip Melbourne suburb where capital growth historically leads the investment case, but where savvy investors are now paying close attention to the improving unit market.

What Is the Blackburn Rental Yield Right Now?

To understand what investors actually earn from Blackburn property, it helps to work through the gross yield calculation precisely. Gross rental yield is simply annual rent divided by the purchase price, expressed as a percentage.

Houses

• Median sale price (Apr-Jun 2025 quarter): $1,670,000 — up 15.4% quarter-on-quarter and 2.2% year-on-year, according to DataVic/REIV data.
• Median weekly rent: $411 (ABS Census 2021, via Collings CRM data).
• Annual rent: $411 x 52 = $21,372.
• Gross yield: $21,372 / $1,670,000 = 1.28%.

Units

• Median sale price (Apr-Jun 2025 quarter): $1,050,000 — a striking 52.5% quarter-on-quarter rise and 22.8% year-on-year growth, per DataVic/REIV.
• Median weekly rent (applied to units): $411.
• Annual rent: $21,372.
• Gross yield: $21,372 / $1,050,000 = 2.03%.

These are gross figures. Net rental yield accounts for ongoing costs: council rates, property management fees, insurance, maintenance, water rates, and periods of vacancy. As a general guide, net yield typically sits 0.5 to 1.0 percentage points below gross yield, meaning net yields for Blackburn houses are likely in the 0.3% to 0.8% range, and for units approximately 1.0% to 1.5%.

For context on how Blackburn compares across the broader metropolitan market, the rental yield Melbourne guide from Collings Real Estate maps the suburbs currently delivering the strongest returns, including higher-yield postcodes where units and townhouses can exceed 4% gross.

What Do the Numbers Say About Investing in Blackburn?

The numbers tell a clear story: investing in Blackburn is primarily a capital growth play, not a cash flow play. The suburb’s median house price of $1.67 million places it firmly in Melbourne’s premium middle-ring tier, and with the ABS Census 2021 recording a median household income of $2,065 per week among residents, Blackburn attracts owner-occupiers and lifestyle buyers who support strong long-term price growth.

The median age of 41.0 years and a population of 14,478 (ABS Census 2021) suggest a well-established, family-oriented community with relatively low tenant turnover in the rental pool. This demographic stability generally translates to reliable rental income even if the yield percentage is modest.

The ATO Investor Context

According to ATO data, the majority of individual property investors in Australia hold negatively geared properties, meaning rental income does not cover total holding costs. Blackburn houses at sub-1.5% gross yield are firmly in that category for most leveraged buyers. However, the ATO’s negative gearing provisions allow investors to offset net rental losses against other assessable income, which has historically made low-yield, high-growth suburbs like Blackburn attractive to high-income earners seeking a tax-efficient wealth-building strategy. Investors should obtain independent tax advice specific to their circumstances.

The Unit Market Shift

The 52.5% quarter-on-quarter jump in Blackburn unit prices to $1.05 million (DataVic/REIV, Apr-Jun 2025) is significant. While this rapid price appreciation has compressed yield in the short term, it also signals strong buyer demand that could underpin future rent growth. Investors who entered the unit market in Blackburn 12 to 18 months ago, before the 22.8% annual price surge, would have locked in meaningfully better yields on their purchase price (their “yield on cost”).

If you are considering multi-dwelling opportunities in the eastern suburbs, exploring unit blocks Melbourne listings can reveal acquisition opportunities where the combined rental income across multiple dwellings produces a more commercially viable blended yield.

What Are the Key Considerations for Rental Blackburn Investors?

Beyond the headline yield numbers, investors evaluating rental Blackburn opportunities should weigh the following factors carefully.

Vacancy Rates and Demand

SQM Research data consistently shows Melbourne’s eastern middle-ring suburbs maintaining vacancy rates below 2%, with well-presented rental properties in Blackburn typically leasing within two to three weeks. Low vacancy is a critical buffer for investors operating with thin yield margins, since even one month of vacancy on a $411-per-week property represents a $1,644 income gap that erases months of net rental profit.

Rental Growth Trajectory

CoreLogic data indicates that Melbourne rents broadly increased by approximately 6% to 8% annually across 2023 and 2024 before moderating in some segments. For Blackburn, where the renter cohort is smaller relative to the owner-occupier base, rental growth tends to be steadier rather than volatile. Investors should model conservative annual rental growth of 3% to 5% when projecting future yields and cash flow.

Property Type and Configuration

Not all Blackburn properties perform equally. A three-bedroom house near Blackburn Station commands a materially different rent per dollar of purchase price than a two-bedroom villa unit in a smaller complex. Townhouses, in particular, can offer an attractive middle ground: lower entry prices than freestanding houses, higher achievable rents than standard apartments, and strong owner-occupier appeal that supports capital values. For investors comparing asset types, the Investment Properties Melbourne listings from Collings include high-yield units and townhouses across the eastern corridor.

Depreciation and Tax Efficiency

Newer units and townhouses in Blackburn benefit from depreciation schedules under Division 40 and Division 43 of the Income Tax Assessment Act. A quantity surveyor’s depreciation report can add meaningful after-tax value to an investment property, effectively improving the net cash position even when gross yield is modest. This is a factor frequently overlooked by first-time investors focused exclusively on the yield percentage.

Infrastructure and Liveability Drivers

Blackburn’s positioning on the Belgrave and Lilydale train lines, proximity to Box Hill’s healthcare and retail precinct, and access to quality schools including Blackburn High School and a cluster of well-regarded primary schools all underpin long-term rental demand. The suburb’s tree canopy and Blackburn Lake Sanctuary add lifestyle premium that keeps vacancy rates low and rental pricing firm.

How Does Collings Real Estate Help Blackburn Investors?

Collings Real Estate has been operating in Melbourne’s investment property market for decades, with deep expertise across the eastern suburbs including Blackburn. A Collings property strategist can provide investor-specific guidance across three key areas.

Property Selection and Due Diligence

Identifying the right property within Blackburn requires more than scanning public listings. Collings maintains access to off-market and pre-market opportunities that never reach the general portals, giving investors the chance to acquire at prices that support better yield outcomes. If you want to explore what is available before it hits the open market, you can register on the Collings off-market portal to receive curated investment opportunities matched to your criteria.

Rental Appraisal and Management

Accurate rental appraisal is the foundation of any credible yield calculation. Collings’ property management team provides frank, data-driven rental appraisals based on current comparable leases in Blackburn, not optimistic projections. Once leased, active management minimises vacancy periods and protects the income stream that underpins the investment thesis.

Portfolio Strategy

For investors interested in how Blackburn fits within a broader Melbourne portfolio, comparing yield profiles across suburbs is essential. The approach used for rental yield Northcote analysis, for example, illustrates how inner-ring and middle-ring suburbs can complement each other within a diversified property portfolio, with inner-ring assets often delivering stronger gross yields while middle-ring assets like Blackburn contribute superior capital growth.

Talk to a Collings Property Strategist

Whether you are evaluating your first Blackburn investment or reviewing an existing portfolio, a Collings property strategist can help you model realistic gross and net yields, assess depreciation benefits, and identify the property types and price points that best match your financial goals. Reach out to the Collings team to arrange a no-obligation strategy conversation.

Frequently Asked Questions About Blackburn Rental Yield

What is the gross rental yield for houses in Blackburn?

Based on a median sale price of $1.67 million (DataVic/REIV, Apr-Jun 2025 quarter) and a median weekly rent of $411 (ABS Census 2021), the gross rental yield for Blackburn houses is approximately 1.28%.

What is the gross rental yield for units in Blackburn?

With a median unit sale price of $1.05 million (DataVic/REIV, Apr-Jun 2025 quarter) and a median weekly rent of $411, the gross yield for Blackburn units is approximately 2.03%.

Is Blackburn a good suburb for investment property?

Blackburn is best suited to investors prioritising long-term capital growth over immediate cash flow. The suburb’s strong demographics, low vacancy environment, and proximity to Box Hill infrastructure support sustained property values, but yields are below the Melbourne metropolitan average and most investors will be negatively geared.

What was the median house price in Blackburn in 2025?

According to DataVic/REIV data, the median house price in Blackburn for the April to June 2025 quarter was $1,670,000, representing a 15.4% increase quarter-on-quarter and a 2.2% increase year-on-year.

How does Blackburn rental yield compare to other Melbourne suburbs?

Blackburn yields are lower than Melbourne’s higher-yield suburban postcodes, many of which can deliver 3% to 4%+ gross yield on units. However, Blackburn’s stronger capital growth trajectory has historically compensated long-term investors through total return. Comparing suburb profiles across the metropolitan market is the best way to align yield expectations with personal investment strategy.

Blackburn remains one of Melbourne’s most respected middle-ring addresses for property investment. While the gross yields are modest by national benchmarks, the suburb’s consistent demand, low vacancy rates, and demonstrated capital growth make it a compelling addition to a long-term wealth-building portfolio. Talk to a Collings property strategist today to understand exactly what your Blackburn investment could earn, and where the best opportunities sit right now.