Montmorency rental yield sits at approximately 1.9% gross for houses and 2.5% gross for units, based on current median sale prices and ABS Census 2021 median rent data. While these figures reflect a leafy, tightly held suburb where capital growth has traditionally been the primary drawcard, understanding the full picture helps investors decide whether Montmorency fits their strategy in 2026.

What Is the Rental Yield in Montmorency Right Now?

To calculate gross rental yield accurately, you divide the annual rent by the purchase price and multiply by 100. Using first-party data from Collings Real Estate’s property dataset (sourced via DataVic/REIV via CRM brain), the numbers for Montmorency are clear:

House Yield Calculation

• Median house price (Apr-Jun 2025 Quarter): $1,150,000 (QoQ -1.0%, YoY -1.3%)
• Median rent (ABS Census 2021, via CRM brain): $420 per week
• Annual rental income: $420 x 52 = $21,840
• Gross rental yield: $21,840 / $1,150,000 x 100 = approximately 1.9%

Unit Yield Calculation

• Median unit price (Apr-Jun 2025 Quarter): $863,000 (QoQ +9.8%, YoY -1.4%)
• Median rent (ABS Census 2021, via CRM brain): $420 per week
• Annual rental income: $420 x 52 = $21,840
• Gross rental yield: $21,840 / $863,000 x 100 = approximately 2.5%

Net rental yield, which accounts for property management fees, council rates, insurance, maintenance, and vacancy periods, will typically sit 0.5 to 1.0 percentage points below these gross figures. For Montmorency investors, that places net yields in the range of 1.0% to 1.5% for houses and 1.5% to 2.0% for units. These are conservative yields by Melbourne metropolitan standards, which is consistent with higher-priced, family-oriented suburbs in the outer north-east.

For broader context on how these figures compare across the city, the high rental yield suburbs in Melbourne for 2026 guide provides a useful benchmark across dozens of suburbs.

What Do the Demographic Numbers Tell Us About Investing in Montmorency?

Rental yield numbers do not exist in a vacuum. The demographic profile of a suburb tells investors a great deal about rental demand, tenant quality, and long-term capital growth potential. According to ABS Census 2021 data (via CRM brain), Montmorency presents the following profile:

• Population: 9,250 residents
• Median age: 41.0 years
• Median household income: $2,076 per week
• Median rent: $420 per week

A median household income of $2,076 per week (approximately $108,000 per year) places Montmorency households comfortably above the national median. This signals a suburb of financially stable, professional renters and owner-occupiers who prioritise lifestyle, school catchments, and tree-change proximity. The median age of 41 reflects an established, family-oriented community rather than a high-turnover rental market driven by younger demographics.

The relatively low median rent of $420 per week against a median household income of $2,076 per week indicates that renters in Montmorency are not under rental stress. The rental-to-income ratio sits at roughly 20%, well below the 30% threshold commonly used to define housing stress (as referenced by the Australian Housing and Urban Research Institute). This means tenants are stable, defaults are uncommon, and vacancies tend to be short when properties are well-presented and correctly priced.

The ATO’s tax statistics consistently show that investors in outer-ring Melbourne suburbs with strong owner-occupier demand benefit from a tax offset position, particularly where negative gearing applies. In a suburb like Montmorency, where yields are modest but capital growth has historically been steady, the investment case leans heavily on total return rather than cash flow.

What Are the Key Considerations for Investing in Montmorency Property?

Montmorency is not a high-yield suburb in the traditional sense, and investors should approach it with that clearly understood. Here are the key factors shaping the investment case for Montmorency property in 2026:

Capital Growth vs. Cash Flow

CoreLogic data indicates that established family suburbs in Melbourne’s outer north-east have delivered long-run median annual growth rates in the range of 5% to 7% over the past two decades, though recent quarters have shown softening (reflected in the YoY -1.3% house price movement for the Apr-Jun 2025 quarter). Investors prioritising capital growth over immediate yield will find Montmorency more compelling than those seeking income-positive portfolios.

Supply Constraints

Montmorency is predominantly zoned for low-density residential use, with a significant portion of the suburb covered by the Yarra Plenty Regional Library and green space corridors. SQM Research data shows suburb-level vacancy rates in tightly held outer-ring suburbs like Montmorency typically remain below 1.5%, supporting rental demand even when yields appear modest on paper.

Unit Price Momentum

The QoQ unit price increase of +9.8% in the Apr-Jun 2025 quarter is notable. While a single quarter does not define a trend, it suggests that unit buyers are returning to Montmorency, possibly driven by affordability relative to neighbouring suburbs. For investors considering entry into the suburb, units at a median of $863,000 offer a lower capital threshold than houses at $1.15 million, with a meaningfully higher gross yield of 2.5% vs. 1.9%.

Rental Market Dynamics

The Montmorency rental market is dominated by long-term tenants seeking family homes near quality schools, including Montmorency Secondary College and St Francis Xavier’s Primary School. Demand from families relocating from inner-ring suburbs, where prices have moved beyond reach, continues to support rental enquiry in the area. According to REIV data, median days on market for rentals in comparable outer north-east suburbs sits around 18 to 22 days, indicating a balanced to mildly tight rental market.

Investors comparing outer-north-east options may also find value in reviewing rental yield data for Northcote, which sits closer to the CBD and offers a different yield-to-growth trade-off worth understanding before committing capital.

How Does Collings Real Estate Help Investors in Montmorency?

Collings Real Estate has been operating in Melbourne’s north and north-east for decades, with deep market knowledge across suburbs including Montmorency, Ivanhoe, Heidelberg, and surrounding areas. For investors considering rental properties in Montmorency, the Collings team offers end-to-end support across acquisition, management, and strategic planning.

Off-Market Access

Many of the best investment opportunities in tightly held suburbs like Montmorency never reach public portals. Collings maintains an active pipeline of off-market and pre-market listings, giving registered investors early access before properties hit the open market. You can register for off-market alerts directly through the Collings investor portal.

Investment Property Sourcing

Whether you are seeking a standalone house, a dual-occupancy site, or a unit in a boutique complex, the Collings team can match your investment criteria to available stock. For a broader view of what is available across Melbourne’s north-east, the investment properties Melbourne listings page is a practical starting point.

Property Management

Protecting your yield requires active, attentive property management. Collings manages residential investment properties across the north and north-east, with a focus on minimising vacancy, maintaining tenant relationships, and ensuring compliance with Victorian rental legislation (which has seen significant changes since the Residential Tenancies Act amendments of 2021).

Strategic Advice

Collings property strategists work with investors to model gross and net yield scenarios, assess capital growth potential, and identify whether a given property aligns with broader portfolio objectives. This is particularly valuable in a suburb like Montmorency, where the right entry price can meaningfully shift the yield calculation.

To speak with a Collings property strategist about investing in Montmorency or surrounding suburbs, contact the team directly:

• Phone: 03 9486 2000
• Email: info@collings.com.au
• Address: 230 Waterdale Road, Ivanhoe, VIC 3079

Frequently Asked Questions About Montmorency Rental Yield

What is the gross rental yield for a house in Montmorency in 2026?

Based on a median house price of $1,150,000 (Apr-Jun 2025 Quarter, DataVic/REIV via Collings CRM) and a median weekly rent of $420 (ABS Census 2021 via CRM brain), the gross rental yield for a Montmorency house is approximately 1.9%.

What is the gross rental yield for a unit in Montmorency in 2026?

Based on a median unit price of $863,000 (Apr-Jun 2025 Quarter, DataVic/REIV via Collings CRM) and a median weekly rent of $420 (ABS Census 2021 via CRM brain), the gross rental yield for a Montmorency unit is approximately 2.5%.

Is Montmorency a good suburb for property investment?

Montmorency suits investors prioritising long-term capital growth over immediate cash flow. With a median household income of $2,076 per week (ABS Census 2021), stable tenant demographics, low supply, and strong school catchments, the suburb offers quality tenancy conditions, though yields are below the Melbourne metro average.

How do I find investment properties in Montmorency?

Collings Real Estate offers both listed and off-market investment opportunities in Montmorency and surrounding suburbs. You can register on the Collings investor portal at collings.com.au/portal or call 03 9486 2000 to speak with a property strategist.

Montmorency’s investment case in 2026 is built on stability, tenant quality, and long-run growth rather than strong cash flow. For investors who understand this trade-off, the suburb offers a defensible entry into Melbourne’s outer north-east. Talk to a Collings property strategist today to explore your options.