Before investing in the short-term rental (STR) market, it helps to know what your property could realistically earn. Without accurate projections, it's challenging to weigh the cost-benefit of hosting, especially when pricing and guest demand vary by region and season.
A solid market analysis helps you spot those patterns early. You'll know when to adjust your rates and what kind of income to expect. On average, Australian short-term rental hosts earn AU$62,388 per year, or around AU$5,199 per month.
The STR income potential is strong, with the short-term-rental sector projected to grow 11.5% annually through 2030. But is STR profitable for everyone? It depends on how well you understand your local market and align your pricing and operations with demand. This guide highlights the numbers so you can assess the STR profitability landscape with actual figures.
Earnings potential by region
Short-term rental earnings in Australia vary widely, shaped by local demand and seasonal shifts. Here's what to expect:
Sydney:
- Average Revenue per Listing: $69,057
- Average Booked Rate: $356
- Total Occupancy: 53%
Sydney attracts over 14 million visitors annually, with spikes during events like Vivid Sydney and New Year's Eve. Hosts near beaches or the Central Business District can secure high average rental income, especially when listings offer short-stay flexibility during these high-demand windows.
Melbourne:
- Average Revenue per Listing: $45,750
- Average Booked Rate: $250
- Total Occupancy: 50%
Major events like the Grand Prix and Australian Open drive sharp booking surges, while conventions and cultural tourism sustain demand across quieter months. This seasonal balance gives hosts a reliable foundation for building rental earnings throughout the year.
Gold Coast:
- Average Revenue per Listing: $89,304
- Average Booked Rate: $400
- Total Occupancy: 61%
Attractions such as Surfers Paradise and Sea World keep bookings steady, with nightly rates rising during summer and school holidays. These market opportunities support strong rental earnings, especially for hosts optimising for peak travel periods.
Queensland coast (e.g., Sunshine Coast):
- Average Revenue per Listing: $80,114
- Average Booked Rate: $371
- Total Occupancy: 59%
With over 4 million annual visitors drawn to attractions such as Australia Zoo and the Noosa Triathlon, this region benefits from consistent holiday demand. Steady bookings and longer average stays support strong STR rental yield without the frequent turnovers seen in busier city markets.
Bunbury
- Average Revenue per Listing: $76,018
- Average Booked Rate: $335
- Total Occupancy: 62%
Bunbury's market is growing, and the region sees consistent bookings from leisure and corporate stays. This region is ideal for owners seeking passive income with lower day-to-day management needs.
Western Australia (Exmouth & coast):
- Average Revenue per Listing: $67,871
- Average Booked Rate: $304
- Total Occupancy: 61%
Short-term rental earnings peak from April to October as visitors travel for whale shark tours and Ningaloo Reef diving. Listings near marine access points have stronger performance but require active management during the high season.
Hunter Valley (Cessnock area):
- Average Revenue per Listing: $98,783
- Average Booked Rate: $481
- Total Occupancy: 51%
Hunter Valley welcomes over 2.5 million visitors yearly, with demand peaking during wine festivals and the grape harvest. A low percentage rental vacancy rate of 1.2% (December 2024) supports premium pricing and strong short-term rental yield across high-season bookings.
Byron Bay:
- Average Revenue per Listing: $101,258
- Average Booked Rate: $522
- Total Occupancy: 53%
Byron Bay delivers high average rental income through premium listings, especially in January during school holidays and summer festivals. Nightly rates often exceed AU$500, but local caps require strategic management to make the most of limited booking windows.
Perth:
- Average Revenue per Listing: $57,096
- Average Booked Rate: $240
- Total Occupancy: 65%
Perth benefits from steady demand, thanks to summer tourism and major events like the FRINGE WORLD Festival and the Perth Festival, which spike rates and profits. Investors can expect high occupancy with moderate management efforts.
Southern Highlands:
- Average Revenue per Listing: $103,596
- Average Booked Rate: $555
- Total Occupancy: 51%
This cool-climate wine region draws weekenders for cellar-door tours and food festivals. With around 60 vineyards across Bowral, Mittagong, and Moss Vale, hosts can tap into strong market opportunities during April and September when bookings spike.
So, what are the top-performing markets?
Byron Bay and Southern Highlands lead with the highest average rental income, over AU$100,000 per listing, and booked rates exceeding AU$500. Hunter Valley and Gold Coast also rank highly, with premium nightly rates and strong short‑term rental income. These regions are solid proof for hosts doubting whether STR is profitable in Australia. If you are focused on maximising short-term rental income, you can build highly profitable portfolios in these markets.
Key factors that can impact your actual earnings
What separates a profitable short-term rental from a stagnant one often comes down to the details you can control. Below are the factors that quietly shape your earnings:
Location
Proximity to beaches, national parks, and city centres increases visibility and boosts occupancy. Most rental guides agree that properties near transit hubs or tourist hotspots consistently outperform those in quieter and less accessible areas.
Seasonality
High seasons, driven by festivals or school holidays, raise nightly rates and fill calendars quickly. Understanding these shifts is essential for managing STR profitability across quieter months.
Property conditions and how you present yourself
Practical amenities and professional photos influence guest decisions from the first click. Well-prepared listings help hosts make a living through better ranking and more consistent bookings.
Guest experience and reviews
Properties with 4.5-star ratings or higher often earn guest trust and repeat stays. A reliable check-in process and quick communication are vital tools for building long-term success.
Pricing strategy
Setting competitive rates is key. This is where dynamic tools such as Beyond come in to help avoid overpricing or underselling. You can also use a pricing strategy backed by a revenue calculator to stay aligned with market shifts and local trends.
Want to maximise your STR earnings, wherever you are in Australia?
Managing pricing manually across seasons, events, and shifting demand can hold back your short-term rental's true earning potential. Beyond's dynamic pricing model solves this by using real-time demand, historical trends, and automation to increase occupancy and revenue.
With Beyond, you can grow bookings and optimise profits, without hidden fees or complex setups. To see what your listings could earn, try Beyond's STR data tool to get your rental’s up-to-date insights for free!
.png){kind=small}
.png){kind=small}
