How much you can earn from Airbnb in Melbourne depends on which data source you believe, and the honest answer is that the two biggest ones disagree. Airbtics puts the average Melbourne host at about $58,000 a year (February 2025 to January 2026), while AirROI’s January 2026 market report says $25,064. Both are measuring real listings. The gap exists because averages hide an enormous spread between barely-listed spare rooms and professionally run two-bedroom apartments in South Yarra. A realistic range for a genuinely available whole property in inner Melbourne is $40,000 to $90,000 a year in gross revenue, and this guide works through what actually lands in your account after costs.
Melbourne Airbnb Earnings at a Glance
Airbnb income in Melbourne splits into clear performance tiers, and the tier you land in matters far more than the citywide average. Here is what the two major datasets showed as at January 2026.
| Metric | Citywide average | Top 25% | Top 10% |
|---|---|---|---|
| Annual revenue (AirROI, Jan 2026) | $25,064 | ~$44,800+ | ~$67,100+ |
| Monthly revenue (AirROI, Jan 2026) | $2,263 (median) | $3,735+ | $5,595+ |
| Annual revenue (Airbtics, Feb 2025 to Jan 2026) | $58,000 avg / $38,000 median | Not published | Not published |
| Average daily rate | $221 to $228 | Higher in bayside and inner south-east | $300+ common |
| Occupancy | 42.6% (AirROI) to 68% (Airbtics median) | 70%+ | 75%+ |
Why do AirROI and Airbtics disagree so sharply on occupancy? Filtering. AirROI counts a wider net of listings, including ones that sit half-dormant on the platform. Airbtics filters more aggressively towards actively available properties. Our own managed portfolio runs at around 85 per cent occupancy, which tells you something about how much of the “average” is dragged down by listings nobody is really working.
Seasonality matters too. AirROI’s data shows December as the peak revenue month in Melbourne and May as the softest, so annual figures smooth over a real summer-to-winter swing that you will feel in your monthly statements.
What Determines How Much You Will Actually Earn
Six variables explain most of the difference between a $25,000 property and a $90,000 one:
- Suburb. A two-bedroom in Middle Park averages around $332 a night. A comparable property further out might struggle to hold $180. Location sets your ceiling before you do anything else.
- Property type and size. Two-bedroom apartments and small houses are the sweet spot in Melbourne. They suit couples, small families and business travellers, and they turn over efficiently. Larger houses earn more per night but book fewer nights.
- Occupancy. The citywide spread runs from the low 40s to the high 60s in percentage terms. Every ten points of occupancy on a $250 nightly rate is worth roughly $9,000 a year.
- Pricing strategy. A rate set once and forgotten leaves money on the table in event weeks (AFL finals, the Australian Open, major concerts) and sits empty in quiet ones. Dynamic pricing that moves daily is the single biggest revenue lever after location.
- Superhost status and reviews. Airbnb’s algorithm rewards fast responses, high ratings and consistency. A listing with a 4.9 rating and Superhost badge appears higher in search and converts better at the same price.
- Quality of management. This one wraps around all the others, which is why we have given it its own section below.
Gross Revenue vs What You Actually Take Home (Worked Example)
Market reports stop at gross revenue, which is a bit like quoting your salary before tax. Here is the full path from bookings to bank account for a realistic property: a two-bedroom apartment in inner Melbourne, professionally managed, achieving a $250 average nightly rate at 70 per cent occupancy.
| Line item | Annual amount |
|---|---|
| Gross accommodation revenue (255 nights × $250) | $63,750 |
| Cleaning fees charged to guests | Pass-through (guests pay, cleaners are paid) |
| Victorian short-stay levy (7.5%) | $0 to owner on Airbnb bookings (guest pays, platform remits) |
| Airbnb host service fee (~3%) | −$1,913 |
| Management fee (flat 15%, includes linen and guest communication) | −$9,563 |
| Short-stay insurance | −$2,000 |
| Utilities and internet | −$4,000 |
| Consumables and restocking | −$800 |
| Maintenance allowance | −$1,500 |
| Net to owner (before mortgage, rates and owners corporation fees) | ~$44,000 |
Three notes on that table, because each one trips owners up.
First, the levy. Victoria’s short-stay levy is 7.5 per cent of the total booking fee on stays under 28 days, in force since 1 January 2025 under the Short Stay Levy Act 2024. On Airbnb it is added on top of your listed price, charged to the guest and remitted by the platform, so it never touches your payout. On Booking.com it is deducted from your payout instead, which means your Booking.com rates need recalibrating or you quietly absorb 7.5 per cent on every booking there. This is one of the most common revenue leaks we find when taking over properties. Our full guide to Victoria’s short-stay levy covers the exemptions and edge cases.
Second, cleaning. Guests pay a cleaning fee per stay, and that money goes to the cleaners. Treat it as a pass-through, not income. If you self-manage and clean yourself, you are converting that line into unpaid labour rather than saving it.
Third, the numbers above exclude ownership costs you would pay anyway: mortgage interest, council rates, owners corporation fees and land tax. Those belong in your investment analysis, not your hosting analysis, but do not forget them when comparing against a long-term lease.
So the honest summary for this example property: about $63,750 gross becomes about $44,000 net, before ownership costs and tax. Whether that beats a long-term rental depends on the property, and our guide on whether Airbnb is still profitable in Australia works through that comparison in detail.
Self-Managed vs Professionally Managed: The Occupancy Gap
The citywide occupancy figures (42.6 per cent from AirROI, 68 per cent median from Airbtics) blend everything from professionally run portfolios to listings that go unanswered for two days at a time. Across the 75+ Melbourne properties we currently manage, occupancy averages around 85 per cent, and new properties typically reach that level within their first six months. Our portfolio holds a 4.85 guest rating and six consecutive years of Airbnb Superhost status. Those are our own figures from our own managed portfolio, not market estimates, and we are stating them here because no data platform can see them.
Where does the gap come from? Nothing mysterious:
- Pricing that moves. Rates adjusted daily against suburb-level demand, competitor performance and Melbourne’s event calendar, rather than one number set at listing time.
- Response speed. Guests book the listing that answers first. A message answered in five minutes at 11pm converts; one answered the next morning usually does not.
- Presentation. Professional photography and styling lift both the click-through rate and the nightly rate the market will accept.
- Review consistency. Superhost status compounds. Better search placement brings more bookings, which bring more reviews, which improve placement again.
On the worked example above, the difference between 55 per cent occupancy (a fair figure for a decent self-managed listing) and 85 per cent is about 110 booked nights, or roughly $27,500 a year in gross revenue on a $250 rate. A 15 per cent management fee on the higher revenue costs less than the revenue it recovers, which is the entire commercial case for professional management. If you are weighing it up, our guide on whether to self-manage or hire an Airbnb manager in Melbourne works through the decision honestly, including the cases where self-managing is the right call.
Melbourne Suburb Snapshot: Where Earnings Are Strongest
Citywide averages flatten out real differences between precincts. Here is how the zones we manage across actually compare, using current listing data from our suburb pages.
CBD, Southbank and Docklands. High volume, event-driven demand. Docklands listings average around $249 a night at 72 per cent occupancy, or roughly $65,000 a year. Apartments here live and die on how well the calendar is priced around AFL fixtures, concerts and conferences. See our Southbank and Docklands management pages for precinct detail.
Inner south-east: South Yarra, Prahran, St Kilda, Elwood. Melbourne’s strongest blend of leisure and corporate demand. A well-presented two-bedroom in this belt commonly holds a nightly rate near or above $300 in season. Our South Yarra and St Kilda pages carry the suburb-level numbers.
Bayside: Port Melbourne, Albert Park, Middle Park, South Melbourne. Quietly some of the best earners in the city. Middle Park listings run at about 74 per cent occupancy and a $332 average nightly rate, near $90,000 a year, and a professionally managed two-bedroom in South Melbourne averages around $78,000. Smaller supply keeps rates firm.
Inner north: Fitzroy, Collingwood, Richmond, Carlton. Strong year-round demand from a younger leisure market plus hospital and university traffic in Carlton and Richmond. AirROI names Fitzroy among Melbourne’s top short-stay neighbourhoods. Rates sit below bayside but occupancy is dependable.
The pattern across all four zones is the same: the suburb sets the range, and management quality determines where in the range you land.
Costs That Cut Into Your Airbnb Income
Budget for all of these before you commit, because gross revenue figures include none of them:
- Management fee. Melbourne full-service managers typically charge 12 to 25 per cent of booking revenue, often with setup fees of $800 to $1,500 on top. We charge a flat 15 per cent with no setup costs. Our guide to what Melbourne Airbnb managers charge compares the market in detail.
- Platform fees. Airbnb’s host service fee is around 3 per cent on the split-fee model. Booking.com’s commission is higher and structured differently.
- Cleaning and linen. Pass-through if guests fund it and it is coordinated well; a real cost if not. Linen services run to thousands a year if paid separately (ours is included in the 15 per cent).
- Short-stay levy. Guest-paid on Airbnb, deducted from your payout on Booking.com unless your rates are adjusted. The cost to hosts is mostly competitive: guests see a higher total price.
- Insurance. Specialist short-stay cover, typically $1,500 to $2,500 a year. Standard landlord insurance generally does not cover paying guests.
- Utilities, internet and consumables. You pay these, not the guest. Allow $4,000 to $5,000 a year for a two-bedroom.
- Maintenance and wear. Higher turnover means more touch-ups. A sensible allowance is $1,000 to $2,000 a year.
- Vacancy risk. Melbourne winters are quieter. Budget on your realistic annual occupancy, not your best month.
Is Airbnb Still Profitable in Melbourne in 2026?
Yes, with the usual caveat that the average property is not automatically profitable, the well-run property is. The 7.5 per cent levy did not kill the market; it is guest-paid on the platform most hosts use, and Melbourne’s visitor economy has kept demand firm. Market data puts average host earnings between roughly $25,000 and $58,000 depending on the source, and actively managed inner-city properties routinely net more than the same property would on a long-term lease. We have written a full analysis in our guide to whether Airbnb is still profitable in Australia, and the levy mechanics are covered in our short-stay levy guide, so we will not repeat either here.
How to Maximise Your Airbnb Earnings in Melbourne
If you take nothing else from this page, take these:
- Price dynamically. Adjust rates daily against demand, seasonality and Melbourne’s event calendar. This alone separates median performers from the top quartile.
- Invest in presentation. Professional photography and considered styling pay for themselves within weeks through higher rates and conversion.
- Answer fast, always. Response time drives both conversion and search ranking. If you cannot cover evenings and weekends, that is a genuine reason to hire help.
- Protect your reviews. Reliable cleaning between every stay, honest listings and quick problem-solving keep ratings high, and a slipping rating takes months to claw back.
- List on more than one platform. Airbnb, Booking.com and Stayz together fill calendar gaps a single platform leaves, as long as the calendars are properly synced.
- Aim for Superhost and keep it. The badge measurably improves search placement and guest trust.
Each of these is covered in depth across our Airbnb management service pages.
Frequently Asked Questions
What is the average Airbnb income in Melbourne?
Between roughly $25,000 and $58,000 a year depending on the data source. AirROI’s January 2026 report puts the average at $25,064, while Airbtics measured $58,000 for the year to January 2026 with a median of $38,000. The spread reflects how many barely-active listings each platform counts. A genuinely available, well-run whole property in inner Melbourne typically grosses $40,000 to $90,000.
Is Airbnb still profitable in Melbourne in 2026?
Yes. The short-stay levy is guest-paid on Airbnb bookings, demand remains firm, and actively managed inner-city properties routinely out-earn the equivalent long-term lease. Profitability depends on suburb, pricing and management quality far more than on the citywide average.
How much does an Airbnb manager cost in Melbourne?
Full-service Melbourne managers typically charge 12 to 25 per cent of booking revenue, and many add setup fees of $800 to $1,500. Holiday House Manager charges a flat 15 per cent with no setup costs, covering pricing, guest communication, cleaning coordination, linen and multi-platform listing.
Who pays the Victorian short-stay levy?
The guest, in most cases. The levy is 7.5 per cent of the total booking fee on stays under 28 days. Airbnb adds it on top of your listed price and remits it to the State Revenue Office, so your payout is unaffected. Booking.com deducts it from your payout instead, so rates there need adjusting. Properties that are the owner’s principal place of residence are exempt.
Can a property manager increase my Airbnb income?
Usually, yes, and by more than the fee. The main levers are occupancy and rate. Citywide occupancy averages sit between the low 40s and high 60s in percentage terms, while our managed portfolio averages around 85 per cent through dynamic pricing, fast guest response and consistent presentation. On a $250 nightly rate, each extra ten points of occupancy is worth about $9,000 a year in gross revenue.
Every property earns differently, and the only figure that matters is yours. Get a free, no-obligation earnings estimate for your property and we will walk you through what it could realistically achieve, what the costs look like, and what our flat 15 per cent covers. Get a free earnings estimate for your property.
