Brisbane Short-Term Rentals Yield 5.0%, but Premium Prices Cap Returns

Estimates for a typical 3-bedroom house. Figures are modelled from market data; not guaranteed outcomes.

Annual long-term rental revenue is monthly rent × 12 × tenanted occupancy (99%). Annual short-term rental revenue is nightly rate × occupancy × 330 available nights. Both match the Dashboard's calculation.

Short-term rental grosses roughly 69% more than long-term rental in Brisbane before costs. After Airbnb fees, higher insurance, utilities, the 65% council rates surcharge, and furnishing turnover, the net gap narrows considerably.

Short-term rental gross revenue matches long-term rental annual rent at around 35% occupancy; after short-term rental specific costs (Airbnb fees, higher insurance, surcharged council rates, turnover) the actual after-costs break-even sits well above that. The current market average sits at 59%, leaving a margin, but occupancy remains the single biggest variable in any holiday rental forecast.

At a softer 44% occupancy (a realistic outcome in a quieter year or for an inexperienced operator), gross revenue falls to roughly $48,514, barely above the long-term rental figure of $38,449. At a stronger 69%, gross revenue lifts to around $76,004. That spread, more than 25 percentage points of revenue from a 25-point swing in occupancy, is why long-term rental can be the safer choice for hands-off investors even though the headline yield is lower.

Brisbane Suburb Yields Range From 4.0% to 5.1%

Yields vary widely across Brisbane's 129 suburbs. The inner-ring premium suburbs that drive the city-wide median price upward sit well below the city-wide gross yield, while outer southern suburbs deliver noticeably higher cash returns. The table below ranks the top five suburbs by long-term rental gross yield.

Eight Mile Plains leads the pack at 5.1%, comfortably above the Brisbane gross yield of 3.0%. The pattern is clear: outer southern suburbs in the $700,000-$900,000 price band deliver roughly 50% more rental yield than inner-ring premium pockets where buyers pay primarily for capital growth potential. These are averages per suburb; your specific bedroom count and property type may differ, view your suburb in the dashboard for that breakdown.

View Brisbane in the dashboard → Free preview · every bedroom count and property type

Why Investors Accept Brisbane's 3.0% Yield

Brisbane is fundamentally an appreciation play, not a cash flow market. The city-wide gross yield of 3.0% is well below the national median of 4.0%, and the median 3-bed house price of $1,302,152 sits substantially above the national median of $833,886. Investors paying this premium are buying into population growth, infrastructure spend, and the 2032 Olympics tailwind, not chasing the highest yield available in Australia.

This trade-off is genuine and quantifiable. A regional Queensland or interstate market might deliver 5-6% gross yield on a $500,000 property, but the structural drivers of Brisbane (interstate migration from Sydney and Melbourne, the south-east Queensland infrastructure pipeline, and a deep buyer pool of owner-occupiers competing with investors) historically support stronger capital growth than higher-yielding regional alternatives. The relevant question is not whether Brisbane's yield is high; it is whether the appreciation premium justifies accepting a thinner cash position.

Brisbane's 1 July 2026 Permit Law Reshapes the Short-Term Rental Calculus

Brisbane's regulatory framework is permissive but increasingly formalised. Brisbane (C) permits short-term rentals with minimal regulatory restrictions. Details: Brisbane Short Stay Accommodation Local Law commences 1 July 2026. Annual permit required for all non-owner-occupied short-term rentals (properties rented <90 consecutive days). 24/7 contact person must respond to complaints within 60 minutes. Public liability insurance and house rules required. Permit number must appear in advertisements. Penalties up to $141,865 for non-compliance. Three-strikes permit revocation. Exemptions: hotels, serviced apartments with on-site manager, owner-occupied (home-hosted). No night cap. Higher council rates (~65% surcharge) already apply to short-term rentals properties. View official regulations

The new permit regime does not cap nights, so the modelled 330 nights per year remain available. But three operating realities matter for the after-permit return:

• The 65% council rates surcharge already applies. A typical Brisbane house pays around $1,706 in council rates as a long-term rental; under short-term rental use, this rises by roughly two-thirds. This is not a future risk; it is a current cost already baked into operating expenses.
• 24/7 contact obligations push toward agent management. Self-managed owners who live more than 15 minutes from the property will struggle to meet the 60-minute complaint response standard, effectively forcing an agency arrangement, which adds roughly 20% on top of platform fees.
• Penalties up to $141,865 raise the cost of non-compliance. Three-strikes permit revocation means a property that loses its permit cannot be rented short-term at all, converting the entire short-term rental thesis into a forced long-term rental conversion mid-cycle.

Operating Costs Take Roughly Half of Brisbane Short-Term Rental Revenue

The 69% headline revenue advantage for short-term rental shrinks substantially after operating costs. For a self-managed Brisbane short-term rental house, total annual costs run to approximately $32,443, comprising:

• Airbnb host fee at 15.5% of revenue: around $10,076
• Short-term rental insurance: $4,428 (higher than long-term rental landlord insurance because of public liability and contents exposure)
• Maintenance and turnover costs: $9,115 (includes furnishing replacement; short-term rental wear is heavier than long-term rental)
• Utilities (paid by the host): $3,324
• Council rates with the 65% short-term rental surcharge already applied: $1,706

Plus an upfront furnishing cost of around $20,250 that is not in the annual figure but should be amortised across the holding period. After these costs, net operating income for short-term rental sits at roughly $32,565, equating to a net yield of 2.5%.

If you choose to hire a professional manager rather than self-managing, add approximately $13,002 to annual costs. Brisbane's new 60-minute complaint response standard makes this more likely than not for absentee owners.

Long-term rental looks cleaner On costs,: total annual costs of around $16,861 (long-term rental management at around 8%, plus landlord insurance of $2,473, maintenance, and base council rates) leave net operating income of $21,588 and a net yield of 1.7%. Stamp duty and conveyancing costs apply on purchase; check current Queensland rates with your solicitor before settlement.

Tax Implications for Brisbane Investors

The post-tax comparison between short-term and long-term rental in Brisbane can look very different from the pre-tax numbers above, particularly for higher-income investors. This is where negative gearing reshapes the decision.

Long-term rental in Brisbane often runs at a modest cash-flow loss in the early years because mortgage interest exceeds net rent. With a $1.04 million mortgage on a $1,302,152 property, interest alone at current rates can comfortably exceed the $38,449 annual rent, creating a paper loss that can be offset against salary income. Short-term rental, when running profitably at $32,565 pre-mortgage, generates less of this offsetting loss.

Building depreciation amplifies the long-term rental tax case further. The Australian building depreciation allowance permits 2.5% of the building's construction cost per year for buildings less than 40 years old. With a depreciable building value of approximately $1,041,722 (representing 80% of sale price), this generates around $26,043 in annual non-cash deductions. Fixtures and fittings depreciation (carpets, air conditioning, appliances) adds further deductions, particularly for newer or recently renovated properties.

The marginal-rate impact is substantial. Under post-stage-3 rates effective 1 July 2024:

• At 30% marginal rate (taxable income $45,001-$135,000): Each $1 of rental loss saves $0.30 in tax. A $20,000 paper loss returns $6,000.
• At 37% marginal rate ($135,001-$190,000): Each $1 of loss saves $0.37. The same $20,000 loss returns $7,400.
• At 45% marginal rate (above $190,000): Each $1 of loss saves $0.45. A $20,000 loss returns $9,000, shifting the comparison.

For a Brisbane investor on the top marginal rate buying a long-term rental that shows a $15,000 pre-tax annual loss, the after-tax cost is closer to $8,250. Apply the same depreciation deductions to a profitable short-term rental and the deductions reduce taxable income but cannot create a loss as readily. The 50% capital gains discount on properties held over 12 months applies equally to both strategies.

Negative gearing is not free money; it requires a genuine cash loss. But for high-income Brisbane investors, the tax treatment can tip the balance toward long-term rental even when short-term rental shows higher pre-tax income. The dashboard calculates your after-tax position including negative gearing and depreciation based on your income; enter your salary to see how the tax treatment changes the short-term rental vs long-term rental comparison for your tax bracket.

Brisbane Sits Well Above State and National Price Benchmarks

Brisbane prices have converged toward Sydney and Melbourne territory while yields have not. The table below puts Brisbane's metrics against the Queensland and Australian medians.

Comparison of key investment metrics.

Brisbane prices sit roughly 50% above the Queensland state average and 56% above the national average, while rents are only modestly higher than both. The yield gap is the inevitable arithmetic of that mismatch. Investors are paying the Brisbane premium for what they expect to come next, not what the market produces today. Sister capitals on the other side of the country face similar dynamics, and the Gold Coast operates with a different regulatory and demand profile entirely; for those comparisons, see our Gold Coast net yield analysis and Queensland Rental Investment Insights. Regional Queensland alternatives are covered in our inland Gold Coast yield analysis, with broader strategy framing in Gold Coast Apartments Out-Yield Houses by Bedroom Count.

Investment Bottom Line

Brisbane is a low-yield, high-conviction market. The headline pre-tax numbers favor short-term rental by roughly 69% on gross revenue, but Brisbane's premium price tag, the new 1 July 2026 permit regime, the 65% council rates surcharge, and the high cost of meeting 60-minute complaint response obligations narrow that gap. After tax, the comparison flips for high-income investors who can use negative gearing and the building depreciation allowance against salary income.

For full Queensland market context, the Queensland rental market insights covers state-level dynamics across all major regions. Methodology for the market score and our underlying data sources are documented separately. Explore rental data in the dashboard to model your specific suburb and tax bracket.

Data reflects market conditions as of May 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.