How to Estimate Rent for an Investment Property
A step-by-step method for estimating what a property will rent for, so the yield you calculate before buying is realistic.
How rental yield works: formulas, worked examples, benchmarks and the metrics investors use to compare properties.
A step-by-step method for estimating what a property will rent for, so the yield you calculate before buying is realistic.
What vacancy rates measure, what counts as tight or loose, how much vacancy to allow in your numbers, and how vacancy changes your real yield.
Five worked rental yield calculations, from an inner-city unit to a house with a granny flat, showing gross yield, net yield and weekly cash flow.
Rental yield is one number. Here is how it fits with cap rate, yield on cost, cash-on-cash return and ROI, all worked on the same property.
Gross yield uses rent and price only. Net yield takes off the costs of owning the property. Here is how to calculate both, with a worked example.
A gross yield above 4% is solid for a capital city property and above 5% is strong. Here is how to judge any yield against 2026 benchmarks.