Keilor East rental yield sits at approximately 3.6% gross for houses and climbs to around 4.4% gross for units in 2026, making it one of Melbourne’s steadier middle-ring suburbs for buy-and-hold investors. Those headline numbers mask important detail, though, so read on for a full breakdown of gross yield, net yield, and what the numbers mean for your cash flow.

What Is the Rental Yield in Keilor East Right Now?

CoreLogic data for the 12 months to mid-2026 shows Keilor East’s median house price sitting at approximately $900,000, while the median weekly rent for a three-bedroom house is around $590 per week. Plugging those figures into the standard gross yield formula (annual rent divided by purchase price, expressed as a percentage) gives:

• Annual rent: $590 x 52 = $30,680
• Gross yield (house): $30,680 / $900,000 = 3.41%

Units tell a stronger story. SQM Research’s latest suburb-level data indicates Keilor East’s median unit price is closer to $590,000, with median weekly rent for a two-bedroom unit at approximately $490 per week:

• Annual rent: $490 x 52 = $25,480
• Gross yield (unit): $25,480 / $590,000 = 4.32%

These figures align with the broader Melbourne unit market, where PropTrack’s mid-2026 report notes that middle-ring western and north-western suburbs are posting unit gross yields averaging between 4.0% and 4.8%, outperforming their house counterparts by 80 to 120 basis points. Keilor East slots comfortably into that band.

Investors comparing multiple suburbs can benchmark Keilor East against a wider list of performers on this guide to rental yield Melbourne suburbs in 2026, which ranks postcodes by both gross and net return.

How Do You Calculate Net Yield in Keilor East — and What Does It Actually Cost to Own?

Gross yield is a useful first filter, but net yield is what you actually deposit into your bank account. To arrive at net yield, you subtract ongoing ownership costs from annual rental income before dividing by the purchase price. For a typical Keilor East investment property in 2026, those costs include:

• Council rates: Brimbank City Council rates average approximately $1,600 to $1,900 per year for a standard residential property.
• Water and sewerage charges: Roughly $1,000 to $1,200 annually.
• Landlord insurance: Typically $1,200 to $1,600 per year for a house; slightly less for a unit.
• Maintenance and repairs: A conservative allowance of 0.5% to 1% of property value per year is standard industry practice.
• Property management fees: Varies by agent and service level.
• Vacancy allowance: SQM Research recorded Keilor East’s vacancy rate at approximately 1.2% in mid-2026, implying roughly four to six days of vacancy per year on average.

Stripping out a conservative total cost figure of around $14,000 per year from the house scenario above leaves net income of approximately $16,680, producing a net yield of roughly 1.85% on the $900,000 purchase price. For the unit, assuming lower costs of around $9,500 per year, net income sits near $15,980, giving a net yield of approximately 2.7%.

The ATO’s 2022-23 rental data (the most recently published at a national level) confirms that Australian landlords report average deductible expenses equivalent to roughly 40-50% of gross rental income, so the gap between gross and net yield is a consistent and material one every investor should model before committing capital.

Negative Gearing Implications for Keilor East Investors

At current interest rates, a landlord borrowing 80% of a $900,000 house purchase at a variable rate of approximately 6.2% per annum faces annual interest costs alone of around $44,640, dwarfing the $30,680 gross rental income. That creates a pre-tax shortfall of roughly $13,960 per year, or about $268 per week. The ATO allows investors to deduct this loss against other taxable income under negative gearing provisions, reducing the after-tax cash outlay for those in higher marginal brackets. Investors should always seek advice from a registered tax agent to model their individual position.

What Is Driving Rental Demand in Keilor East in 2026?

Strong rental demand in Keilor East is not accidental. Several structural factors are keeping vacancy low and pushing rents steadily upward:

1. Proximity to employment nodes. Keilor East sits within 14 kilometres of the Melbourne CBD and is close to the Sunshine Employment Precinct, Essendon Fields business park, and the growing Sydenham industrial corridor. Workers in those areas are actively seeking rental accommodation nearby.
2. School catchments. Keilor Heights Primary School and the broader Brimbank catchment options attract families who are renting while they save for a deposit or await a purchase settlement.
3. Infrastructure pipeline. The Suburban Rail Loop environmental effects statement has reinforced confidence in Melbourne’s north-western corridor, and the ongoing Western Ring Road improvements reduce commute times from Keilor East to the broader metropolitan area.
4. Rental supply constraint. According to the Real Estate Institute of Victoria (REIV), the proportion of dwellings available for rent in Brimbank council at June 2026 remains below the long-run average, keeping upward pressure on advertised rents.
5. Tenant demographic stability. Keilor East has a high proportion of long-term renters, including established families and older professionals, which reduces turnover costs for landlords compared with suburbs dominated by transient student populations.

For investors exploring how these dynamics compare with inner-north Melbourne, the Ivanhoe East property market analysis provides a useful parallel case study of a suburb where similar demand drivers are playing out at a higher price point.

Which Property Types Deliver the Best Yield in Keilor East?

Not all assets in Keilor East are created equal from a yield perspective. Here is how the main investment-grade property types stack up:

Houses

Three and four-bedroom houses dominate stock in Keilor East. As shown above, gross yields hover around 3.4% to 3.7%. These properties typically attract families seeking stability, which translates into longer average tenancies of 24 to 36 months, according to REIV suburb-level tenancy data. Lower turnover means lower re-letting costs, which partially offsets the thinner yield margin.

Townhouses

Newer two and three-bedroom townhouses, many of which have been built on subdivided lots since 2018, are proving popular with downsizers and young families alike. Median sale prices for these properties range from approximately $680,000 to $780,000, while achievable rents are broadly similar to older houses. This tighter purchase price can push gross yield into the 3.9% to 4.2% range, making townhouses a compelling middle ground between houses and units.

Units and Apartments

Two-bedroom units offer the strongest gross yield in the suburb, as established above at around 4.3%. Strata levies are the key additional cost to model; these vary widely but typically run between $1,500 and $4,000 per year for a standard complex in Keilor East. Investors interested in multi-unit exposure should also review investment properties in Melbourne to understand how yield profiles vary across property types across the city.

How Does Keilor East Rental Yield Compare With Nearby Suburbs?

Context matters when assessing whether a suburb’s yield warrants investment. Using mid-2026 CoreLogic and SQM Research data, the table below shows how Keilor East compares with several comparable north-western and western Melbourne suburbs:

• Keilor East (houses): ~3.4% gross yield, median price ~$900,000
• Taylors Lakes (houses): ~3.2% gross yield, median price ~$870,000
• Keilor Downs (houses): ~3.6% gross yield, median price ~$830,000
• Essendon (houses): ~2.8% gross yield, median price ~$1,200,000
• Sunshine North (houses): ~4.1% gross yield, median price ~$720,000

Keilor East lands in a solid mid-tier position. It offers a meaningfully better yield than prestige inner-suburb alternatives like Essendon, while its stronger median price and perceived lifestyle amenity give landlords more confidence in long-term capital growth compared with the higher-yielding but lower-priced western suburbs. This trade-off between yield and growth is the central tension every Melbourne property investor must navigate.

For a suburb-by-suburb deep dive across Melbourne’s top-performing postcodes, the guide to high rental yield suburbs in Melbourne for 2026 is an essential reference point.

What Should Investors Know Before Buying in Keilor East?

Beyond the numbers, a few practical considerations shape investment outcomes in Keilor East specifically:

• Zoning: Much of Keilor East falls under the Neighbourhood Residential Zone (NRZ), which limits density and protects the suburb’s established character. Buyers targeting subdivision or development should verify current zoning overlays with Brimbank City Council before committing.
• Flood and bushfire overlays: Portions of the suburb near Steele Creek and the Maribyrnong River catchment carry flood risk overlays. These can affect insurance premiums and lender appetite, both of which feed directly into net yield calculations.
• Rental legislation: Victoria’s minimum rental standards, introduced progressively since 2021 and reviewed again in 2025, now cover heating, cooling, and insulation requirements. Older properties may require capital expenditure to comply, which should be factored into acquisition due diligence.
• Land tax thresholds: The State Revenue Office of Victoria applies land tax to investment properties where the unimproved land value exceeds the threshold. Investors holding multiple properties across Victoria should model their aggregate land tax liability carefully, as it directly reduces net yield.

Conclusion

Keilor East delivers gross rental yields of roughly 3.4% for houses and approximately 4.3% for units in 2026, supported by a tight vacancy rate of around 1.2% and a tenant base that prioritises stability. Net yields, after council rates, insurance, management, and maintenance, compress those figures to the 1.8% to 2.7% range depending on property type and financing structure. For investors willing to accept a modest cash-flow shortfall in exchange for a suburb with genuine capital growth potential and strong rental demand fundamentals, Keilor East warrants serious consideration in any Melbourne portfolio strategy.

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