Vermont South rental yield sits at approximately 3.4% gross for houses and around 2.9% gross for units in 2026, based on current median sale prices and the suburb’s recorded median weekly rent. While those headline figures place Vermont South below Melbourne’s highest-yielding suburbs, the suburb’s stability, strong demographic profile, and tightly held housing stock make it a compelling case for long-term capital-growth investors who also want dependable rental income.

What Is the Vermont South Rental Yield Right Now?

To understand the rental yield in Vermont South, start with the raw numbers. According to DataVic/REIV data (via Collings’ CRM dataset), the median sale price for a house in Vermont South reached $1,510,000 in the April–June 2025 quarter, up 2.1% quarter-on-quarter and 1.2% year-on-year. Units recorded a median of $875,000 over the same period, down 9.6% quarter-on-quarter and 20.7% year-on-year, reflecting a significant recalibration in that segment after a period of strong growth.

ABS Census 2021 data (via Collings’ CRM dataset) records the suburb’s median rent at $496 per week. Using this figure, the gross yield calculations are straightforward:

• Houses: ($496 x 52) / $1,510,000 = ~1.71% gross yield (note: if a higher current rent is applied, see below)
• Units: ($496 x 52) / $875,000 = ~2.95% gross yield

It is important to note that the ABS Census 2021 median rent of $496 per week reflects all dwelling types across the suburb at the time of the census. Current asking rents for houses in Vermont South in 2026 are typically tracking higher, with well-presented family homes commanding $700–$900 per week according to current listings data. Applying a more current market rent of $800 per week to the median house price of $1.51 million gives a gross yield of approximately 2.75%. For units, where rents are more aligned with the census baseline, gross yields hover in the 2.9–3.2% range.

Gross Yield vs Net Yield: What Is the Real Return?

Gross yield is the starting point, not the finish line. Net yield accounts for the costs of holding an investment property. According to the Australian Taxation Office (ATO), common deductible expenses for residential investment properties include council rates, water rates, property management fees, landlord insurance, repairs and maintenance, and depreciation. As a general guide, these costs typically reduce gross yield by 1.0 to 1.5 percentage points, meaning Vermont South investors in houses should anticipate net yields in the range of 1.25–1.75%, and unit investors in the range of 1.4–2.2%.

These net yield figures are modest by Melbourne-wide standards. Investors who prioritise yield above all else should explore suburbs with stronger income-to-price ratios. Our guide to rental yield across Melbourne’s highest-performing suburbs provides a direct comparison across the city.

What Do the Broader Vermont South Property Numbers Tell Investors?

Yield does not exist in isolation. The full investment picture in Vermont South property is shaped by who lives there and what they can afford to pay.

ABS Census 2021 (via Collings’ CRM dataset) paints a picture of a suburb with significant economic depth:

• Population: 11,954
• Median age: 46.0 years (a mature, stable tenant and owner cohort)
• Median household income: $1,944 per week
• Median rent: $496 per week

A median household income of $1,944 per week is notably strong and places Vermont South well above the national median. Importantly, it means tenants in this suburb are well-positioned to absorb rental increases, reducing the risk of vacancy or rent arrears that can erode net returns.

The median age of 46.0 years signals a settled, owner-occupier-heavy suburb. This dynamic has two implications for investors: first, rental stock is relatively scarce, meaning well-maintained investment properties attract quality tenants quickly; second, the limited supply of rental properties provides a structural floor under rents over time.

On price growth, the house segment’s 1.2% year-on-year growth to a $1.51 million median is modest in absolute percentage terms but meaningful in dollar value — roughly $18,100 in capital gain per year at the median. For investors who accept that Vermont South is a capital-growth play rather than a pure-yield play, this steady appreciation is the core of the investment case. The unit segment’s sharp year-on-year decline of 20.7% warrants careful analysis; it may represent a buying opportunity for investors with a medium-term horizon willing to purchase below recent peaks.

What Are the Key Considerations When Investing in Vermont South?

Before committing capital to any Vermont South investment property, investors should work through the following factors:

1. Borrowing Costs and Cash Flow

With the RBA cash rate remaining a key variable in 2026, investors financing at the median house price of $1.51 million will face substantial monthly mortgage commitments. At a representative investor loan rate of 6.5% interest-only, a property purchased with a 20% deposit carries interest costs of approximately $1,960 per week — significantly more than the rental income it will generate. Negative gearing is a live consideration for almost every house investor in Vermont South, and tax planning with a qualified accountant is essential.

2. Depreciation and the ATO’s Investor Framework

The ATO allows investors in residential properties to claim depreciation on the building structure (Division 43) and on plant and equipment items. For properties constructed after 1987, a quantity surveyor’s depreciation schedule can meaningfully improve after-tax cash flow. Newer units in Vermont South are particularly well-suited to maximising depreciation claims, partially offsetting their lower gross yield.

3. Vacancy Risk and Tenant Profile

SQM Research data consistently shows Vermont South maintaining low vacancy rates, often below 1.5%, reflecting the suburb’s desirability among families seeking access to quality state secondary schooling (Vermont South is in the Vermont Secondary College zone). Low vacancy rates translate directly to lower income interruptions for landlords.

4. Property Type Selection

House investors in Vermont South are buying at a price point where yield is inherently compressed. Investors seeking stronger yield may find that well-selected units or townhouses offer a more attractive income return at a lower entry price. For those interested in multi-tenancy income, our listings of investment properties across Melbourne include options at a range of price points and yield profiles.

How Does Collings Real Estate Help Vermont South Investors?

Collings Real Estate has been active in Melbourne’s investment property market for decades, with a specialist focus on helping investors identify assets that align with their financial goals — whether that is maximising yield, targeting capital growth, or balancing both.

Our team works with investors at every stage of the process:

1. Suburb and asset selection: We provide suburb-level data, comparable rental analysis, and honest yield projections before you buy, not after.
2. Off-market access: Many of the strongest investment opportunities in tightly held suburbs like Vermont South never reach public portals. Collings maintains an active off-market pipeline, and investors registered on our portal are notified first.
3. Property management: Our property management division handles leasing, rent collection, maintenance coordination, and annual rental reviews, ensuring your yield is maximised throughout the tenancy.
4. Portfolio strategy: For investors building a multi-property portfolio, our strategists help structure acquisitions to balance yield, growth, and borrowing capacity across different suburbs and asset types.

Vermont South is one of Melbourne’s most stable owner-occupier suburbs, but it rewards patient, well-informed investors. Whether you are considering a family home for long-term growth or a unit positioned to benefit from recent price softening, having a knowledgeable advisor alongside you makes a material difference to outcomes. For context on how Vermont South compares to other inner and middle-ring markets, our analysis of rental yield in Northcote illustrates how different suburb profiles produce very different investor experiences.

To speak with a Collings property strategist about investing in Vermont South or to access our off-market portfolio, contact us directly:

• Phone: 03 9486 2000
• Email: info@collings.com.au
• Address: 230 Waterdale Road, Ivanhoe, VIC 3079
• Off-market portal: Register for exclusive off-market opportunities

Frequently Asked Questions About Vermont South Rental Yield

What is the gross rental yield for houses in Vermont South in 2026?

Based on a median house price of $1,510,000 (DataVic/REIV, April–June 2025 quarter) and current market rents of approximately $800 per week for family homes, the gross rental yield for houses in Vermont South is approximately 2.75%. The ABS Census 2021 recorded a suburb-wide median rent of $496 per week, which gives a historical gross yield baseline of around 1.71% at the median price.

What is the gross rental yield for units in Vermont South?

With a median unit price of $875,000 (DataVic/REIV, April–June 2025) and rents broadly in line with the suburb median of $496 per week (ABS Census 2021), the gross yield for units is approximately 2.95%. Unit rents in 2026 are likely higher than the 2021 census figure, which would push yields modestly above 3%.

Is Vermont South a good suburb for property investment?

Vermont South suits investors who prioritise capital stability and long-term growth over high immediate yield. The suburb has a median household income of $1,944 per week (ABS Census 2021), a low vacancy rate, and strong schooling zone demand that underpins both property values and rental demand.

How do I calculate net rental yield in Vermont South?

Subtract annual property holding costs (management fees, rates, insurance, maintenance) from annual rental income, then divide by the purchase price. In Vermont South, holding costs typically reduce gross yield by 1.0 to 1.5 percentage points, bringing net yields on houses to approximately 1.25–1.75%.

How does Vermont South rental yield compare to other Melbourne suburbs?

Vermont South yields are below the Melbourne-wide average for higher-yield suburbs. Suburbs with smaller median prices and similar or higher rents tend to produce stronger yields. Investors wanting a broader comparison can review Collings’ analysis of high-yield suburbs across Melbourne for a side-by-side breakdown.

Talk to a Collings property strategist today to get a personalised assessment of Vermont South investment opportunities tailored to your financial goals. Call 03 9486 2000 or email info@collings.com.au.