Australia's most populous state boasts some of the most in-demand areas to live in on the planet. From the Northern Beaches to Sydney to the Blue Mountains, there are many property markets in NSW that will probably always have strong demand. If you're looking for an investment property with strong cashflow, these are the towns and suburbs in NSW with among the highest rental yields.

NSW Rental Yields in 2026

According to the most recent data available at the time of writing, these are the median rental yields for units and houses across NSW, divided between metro and country zones.

Median price

Median weekly rent

Median rental yield

Houses (Sydney)

$1,560,000$7502.6%

Units (Sydney)

$835,000$7154.5%

Houses (Rest of NSW)

$790,000$5904.0%

Units (Rest of NSW)

$680,000$5204.1%

Source: CoreLogic. Data reported to the period ending October 2025. Median values account for sales transactions over three months.

Rental yields in New South Wales are generally lower than the norm for Australia.

As of October 2025, the average house in Sydney returned 2.6% annually in rent, lower than any other state capital - next lowest was Canberra, Brisbane, and Melbourne, all at 3.5%. Both property prices and rent are higher in Sydney than anywhere else in the nation, since generally speaking, more expensive property tends to have lower rental yields.

Regional property in NSW also generally has lower rental yields than in other states. Both houses and units located in NSW outside of Sydney have an average yield around 4%, the lowest of all eight states/territories.

Read more: Highest rental yields in Australia

Best Rental Yields in NSW

Most recent estimates suggest Broken Hill has the highest rental yields for houses in NSW, at an average of 8.9%. For units it was Lismore in Northern NSW, with an average yield of 6.9%.

Houses

RankSuburb (Postcode)LGAMedian PriceMedian RentRental Yield
1stBroken Hill (2880)Broken Hill$205,000$3508.9%
2ndCoonamble (2829)Coonamble$180,000$3008.7%
3rdNyngan (2825)Bogan$260,000$4008.0%
4thSouth Lismore (2480)Lismore$367,500$4987.0%
5thCoonabarabran (2357)Warrumbungle$288,750$3806.8%
6thWest Wyalong (2671)Bland$385,000$4956.7%
7thFinley (2713)Berrigan$325,000$4006.4%
8thCobar (2835)Cobar$277,500$3406.4%
9thWarialda (2402)Gwydir$290,000$3556.4%
10thWellington (2820)Dubbo$312,500$3806.3%
11thFarley (2320)Maitland$499,999$6006.2%
12thMoree (2400)Moree Plains$335,000$4006.2%
13thCondobolin (2877)Lachlan$260,000$3106.2%
14thGilgandra (2827)Gilgandra$320,000$3806.2%
15thBerrigan (2712)Berrigan$321,000$3786.1%
16thColeambally (2707)Murrumbidgee$345,500$4006.0%
17thNarrandera (2700)Narrandera$330,000$3806.0%
18thHarden (2587)Hilltops$370,000$4256.0%
19thNarromine (2821)Narromine$392,625$4506.0%
20thPeak Hill (2869)Parkes$280,000$3205.9%
21stNarrabri (2390)Narrabri$465,000$5305.9%
22ndLockhart (2656)Lockhart$377,500$4305.9%
23rdWerris Creek (2341)Liverpool Plains$330,000$3755.9%
24thBoggabri (2382)Narrabri$352,500$4005.9%
25thDeniliquin (2710)Edward River$358,500$4005.8%

Source: CoreLogic. Data reported to the period ending October 2025. Median values account for sales transactions over three months.

Broken Hill, Coonamble, and Nyngan are the standout suburbs for houses, with rental yields more than a full percentage point higher than the rest on this list.

About 1,100kms west of Sydney, Broken Hill is Australia's oldest continuous mining town, sitting above one of the world's largest deposits of silver-lead-zinc ore. Mining hotspots often have high rental yields because of the imbalance between the large number of people moving to the area temporarily and the comparatively fewer that actually want to buy.

Coonamble meanwhile is a regional centre for sheep and the wool industry. Farming is another common denominator in areas with high rental yield, possibly because of agricultural workers temporarily relocating to the area.

Farming and mining are also the likeliest explanation for the strong yields in Nyngan, part of the Bogan Shire which the NSW Government says is a 'wool and mining region with a very productive pastoral and agricultural shire'.

Units

RankSuburb (Postcode)LGAMedian PriceMedian RentRental Yield
1stSapphire Beach (2450)Coffs Harbour$380,000$5557.6%
2ndMoree (2400)Moree Plains$207,500$2807.0%
3rdLismore (2480)Lismore$290,000$3907.0%
4thHaymarket (2000)Sydney$938,000$1,2006.7%
5thSouth Tamworth (2340)Tamworth$265,000$3306.5%
6thSouth Albury (2640)Albury$285,000$3506.4%
7thMoama (2731)Murray River$391,000$4806.4%
8thDeniliquin (2710)Edward River$239,500$2906.3%
9thCrestwood (2620)Queanbeyan-Palerang$365,000$4406.3%
10thKooringal (2650)Wagga Wagga$326,000$3906.2%
11thMuswellbrook (2333)Muswellbrook$340,000$4056.2%
12thGranville (2142)Cumberland$524,000$6206.2%
13thChippendale (2008)Sydney$752,500$8906.2%
14thScone (2337)Upper Hunter$355,000$4186.1%
15thDubbo (2830)Dubbo$323,750$3806.1%
16thBilambil Heights (2486)Tweed$447,500$5256.1%
17thEast Tamworth (2340)Tamworth$334,000$3906.1%
18thProspect (2148)Blacktown$510,500$5956.1%
19thPendle Hill (2145)Cumberland$494,375$5756.0%
20thHarris Park (2150)Parramatta$503,000$5856.0%
21stGuildford (2161)Cumberland$475,000$5506.0%
22ndVillawood (2163)Canterbury-Bankstown$562,500$6506.0%
23rdMerrylands (2160)Cumberland$520,000$6006.0%
24thUltimo (2007)Sydney$650,000$7506.0%
25thMascot (2020)Bayside (NSW)$873,000$1,0006.0%

Source: CoreLogic. Data reported to the period ending October 2025. Median values account for sales transactions over three months.

The area with the highest rental yield for units was Sapphire Beach in Coffs Harbour. A popular holiday destination, a rise in short stay accomodation like AirBnb may have contributed to rent going up in Sapphire Beach relative to property prices. 

Moree had the second highest yields, another major agricultural hotspot. Moree is a major producer of crops like cotton and wheat, as well as livestock.

The most likely explanation for Lismore in third place is unfortunately the severe flooding that’s affected Lismore in recent years. The flood risk likely reduces demand to buy Lismore property, pulling prices below where they would otherwise be. Since you aren’t taking on as much risk when you rent, the rates likely aren’t affected to the same extent, creating the imbalance.

Highest Rental Yields in Sydney

Suburbs in rural NSW make up the majority of the above list - capital cities tend to have more modest rental returns than property in regional areas.

Crangan Bay in Central Coast had the highest average rental yield for houses at 5.2% as of October 2025. For units, it was inner city suburb Haymarket (6.7%)

This is where you could expect to find the highest rental yields in the Sydney statistical division:

Houses

RankSuburb (Postcode)LGAMedian PriceMedian RentRental Yield
1stCrangan Bay (2259)Central Coast$895,000$8905.2%
2ndWarnervale (2259)Central Coast$1,000,000$8204.3%
3rdTuggerah (2259)Central Coast$800,000$6504.2%
4thGwandalan (2259)Central Coast$820,000$6504.1%
5thWadalba (2259)Central Coast$915,000$7254.1%
6thWoongarrah (2259)Central Coast$972,500$7704.1%
7thVineyard (2765)Hawkesbury$1,077,500$8504.1%
8thMardi (2259)Central Coast$950,000$7404.1%
9thBlue Haven (2262)Central Coast$797,500$6204.0%
10thAustral (2179)Liverpool$998,000$7704.0%
11thLeppington (2179)Camden$1,020,000$7804.0%
12thCaddens (2747)Penrith$1,120,000$8503.9%
13thHamlyn Terrace (2259)Central Coast$950,000$7203.9%
14thCharmhaven (2263)Central Coast$767,500$5803.9%
15thChittaway Bay (2261)Central Coast$880,000$6653.9%
16thNiagara Park (2250)Central Coast$875,000$6603.9%
17thChittaway Point (2261)Central Coast$830,000$6253.9%
18thWatanobbi (2259)Central Coast$800,000$6003.9%
19thMannering Park (2259)Central Coast$805,999$6003.9%
20thBow Bowing (2566)Campbelltown$915,000$6803.9%
21stJordan Springs (2747)Penrith$1,025,000$7603.9%
22ndKanwal (2259)Central Coast$812,000$6003.8%
23rdLake Haven (2263)Central Coast$840,000$6203.8%
24thChain Valley Bay (2259)Central Coast$815,000$6003.8%
25thBardia (2565)Campbelltown$1,041,500$7653.8%

Source: CoreLogic. Data reported to the period ending October 2025. Median values account for sales transactions over three months.

Units

RankSuburb (Postcode)LGAMedian PriceMedian RentRental Yield
1stHaymarket (2000)Sydney$938,000$1,2006.7%
2ndGranville (2142)Cumberland$524,000$6206.2%
3rdChippendale (2008)Sydney$752,500$8906.2%
4thProspect (2148)Blacktown$510,500$5956.1%
5thPendle Hill (2145)Cumberland$494,375$5756.0%
6thHarris Park (2150)Parramatta$503,000$5856.0%
7thGuildford (2161)Cumberland$475,000$5506.0%
8thVillawood (2163)Canterbury-Bankstown$562,500$6506.0%
9thMerrylands (2160)Cumberland$520,000$6006.0%
10thUltimo (2007)Sydney$650,000$7506.0%
11thMascot (2020)Bayside$873,000$1,0006.0%
12thSydney Olympic Park (2127)Parramatta$670,000$7655.9%
13thKellyville Ridge (2155)Blacktown$565,000$6305.8%
14thToongabbie (2146)Parramatta$570,000$6305.7%
15thZetland (2017)Sydney$956,500$1,0505.7%
16thMerrylands West (2160)Cumberland$483,750$5305.7%
17thRosehill (2142)Parramatta$520,000$5685.7%
18thFairfield (2165)Fairfield$440,000$4805.7%
19thAuburn (2144)Cumberland$590,000$6435.7%
20thParramatta (2150)Parramatta$615,000$6705.7%
21stRegents Park (2143)Cumberland$505,000$5505.7%
22ndWentworthville (2145)Cumberland$595,000$6405.6%
23rdWarwick Farm (2170)Liverpool$465,000$5005.6%
24thMays Hill (2145)Cumberland$605,000$6505.6%
25thCarramar (2163)Fairfield$392,000$4205.6%

Source: CoreLogic. Data reported to the period ending October 2025. Median values account for sales transactions over three months.

Looking for an investment property? Here are some of the top investment home loans available on the Australian market right now

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.24% p.a.
6.28% p.a.
$3,075
Principal & Interest
Variable
$0
$530
90%
  • Investor
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Minimum 10% deposit needed to qualify. Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
Disclosure
6.04% p.a.
5.95% p.a.
$3,011
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Investor
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable investment home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
  • Investor
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
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Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning