Rates and revenue
Rates in Melbourne climb with bedrooms, but revenue doesn't climb with them as fast. In AirROI's entire-home data, a studio averages A$170 a night with median annual revenue of A$22,700 and 47% occupancy. A one-bedroom home averages A$215, A$29,300 and 50%, and a two-bedroom home A$290, A$37,700 and 48%. A three-bedroom home averages A$457 a night with median revenue of A$37,800 at 39% occupancy, a four-bedroom home A$649 with A$39,800 at 32%, and the five-or-more-bedroom group A$968 with A$64,400 at 33%. Median revenue barely moves between two and four bedrooms, because the higher rate is offset by lower occupancy. That is where a marketing plan has the most to do: a four-bedroom house that fills a third of its nights at A$649 is selling to a small group of guests, and finding more of them is a positioning job, not a pricing one. AirROI's amenity table shows ocean-view listings (2% of the market) averaging A$62,100 against A$37,400 without, and river-view listings A$59,700, but it warns that these gaps partly reflect larger, professionally run homes.
Melbourne's rate barely moves with the season while occupancy does. AirROI's high season, December and January, averages A$5,770 a month at 53% occupancy and A$341 a night. Its shoulder months (February to April, July, October and November) average A$4,210, 49% and A$312, and its low months (May, June, August and September) A$3,540, 43% and A$307. By calendar month, January averages A$5,860 and May A$3,390, so the best month earns about 1.7 times the worst. In the latest twelve months the pattern was the same: January 2026 earned A$5,895 at 52.8% occupancy and A$346 a night, December 2025 A$5,778 at 52.6% and A$340, and May 2026 A$3,605 at 40.5% and A$326. July 2026 earned A$4,524 at 43.4% and A$335, ahead of May and June. A host who raises the rate only by a little and works on occupancy in the quiet months is following the market's own shape.
Guests book about 54 days ahead on average, from about 67 days for December stays to about 33 for June. The average stay is 5.8 nights and the average listing takes about 24 bookings a year. On minimum stays, 25% of listings accept one night, 44% ask for two, 14% for three, 10% for four to six, 6% for seven to 29 and 1% for 30 or more. Cancellation policies lean firm: 36% are Firm, 31% Moderate, 15% Flexible and 11% Strict. Cleaning fees are the item guests notice. AirROI says 85.6% of listings charge one, with a median of A$153 and an average of A$244, about 10.5% of gross revenue, or roughly A$42 a night on a 5.8-night stay. Its profit model for an average self-managed listing starts at A$37,821 of gross bookings (A$33,851 of nightly revenue plus A$3,970 of cleaning fees), takes off A$13,280 of running costs, including A$4,960 in Airbnb fees and A$3,970 for cleaning, and leaves A$24,541 before housing costs, about A$2,050 a month. For a top-quarter listing the same model shows A$61,620 of bookings and A$40,350 left, about A$3,360 a month. The stats box shows A$3,150 a month: AirROI's A$37,821 annual average spread over twelve months, so it describes the whole year and not a May.
The year in Melbourne
Melbourne's year is built on events more than weather, and summer here runs from December to February. The school summer holidays start after Term 4 ends on Friday 18 December 2026 and run until Term 1 starts on 27 January 2027, which puts the Boxing Day Test at the MCG inside the school break. The MCG's website lists Australia v New Zealand from Saturday 26 December 2026, with play starting at 10:30 am each day through Wednesday 30 December. The Australian Open runs from 11 to 31 January 2027, and AirROI's January 2026 was the best month of its twelve. Autumn brings the Australian Grand Prix, listed on the event's website for 2 to 4 April 2027 at Albert Park Circuit, and the autumn school break sits between Term 1 ending on 25 March and Term 2 starting on 12 April 2027. The winter break covers 26 June to 11 July 2027, and the spring break 18 September to 3 October 2027. The Spring Racing Carnival at Flemington, with Derby Day on 31 October 2026, Melbourne Cup Day on Tuesday 3 November, Oaks Day on 5 November and Stakes Day on 7 November, carries the end of spring. Prahran Market lists itself closed on Melbourne Cup Day, and Queen Victoria Market's posted hours show Tuesday closed for the public holiday, so tell Cup week guests to check before they shop.
The money most hosts miss sits in the quiet stretch. May is AirROI's weakest month, June stays book only about 33 days ahead, and August and September sit in its low season at about 43% occupancy. Those months are where a clear reason to come matters most. The NGV's visit page says selected gallery spaces may close from 7 September to 13 December 2026 while the NGV Triennial is installed, which points to a Triennial opening in December. Longer stays are another answer: only 6% of AirROI's listings set a seven-to-29-night minimum and about 1% ask for 30 nights or more, and the State Revenue Office counts a short stay as under 28 consecutive days, so a booking of 28 days or more falls outside the levy. Ask a Victorian lawyer how a longer stay is treated under tenancy law before you sell one. Mid-week offers for Melburnians, who are the largest single group of guests, and for interstate visitors in for work, fill nights that an event-only calendar leaves empty.