Is Airbnb Still Worth It In Victoria In 2026? ............Here's What The Data Actually Says

By Em Stone | Stay Savvy

Everyone's been asking me the same question lately.

"Is it still worth starting an Airbnb in Victoria? With the new levy and all the council stuff — is it actually worth doing?"

I get it. The headlines have been a little scary. So let me cut through the noise and tell you what I'm actually seeing — as someone who has been hosting on the Mornington Peninsula for 12 years, holds Top 1% status globally, and mentors new hosts every single week as an official Airbnb Ambassador.

Short answer? Yes. But only if you do it right.

What Actually Changed In Victoria

Let's be honest about the elephant in the room.

Victoria introduced a 7.5% short-stay levy on all bookings under 28 nights, effective January 2025. It applies to the total booking fee and yes, it eats into your margin. It's real, and anyone telling you to ignore it is doing you a disservice.

Strata buildings can now also vote to ban short-stays entirely, and some councils are moving toward a 90-night cap in certain areas. So yes — the rules are tighter than they were a few years ago.

But here's what those headlines aren't telling you.

Regulations Reduce Supply, Not Demand

This is the part that most people miss.

Every new regulation that comes in removes the hosts who don't comply — and concentrates demand onto those who do. Tourists still come to Victoria. Families still need Peninsula escapes. Medical professionals still need somewhere to stay near hospitals. University families still need accommodation close to campus.

When a casual or non-compliant host exits the market, their bookings don't disappear. They move to the next available listing.

If you set up properly from day one — legal, compliant, well-presented — you're not competing in a harder market. You're inheriting guests from everyone who didn't bother.

The Numbers That Actually Matter

The average Melbourne Airbnb occupancy sits around 42-69% depending on the data source and property type. Average nightly rates sit around $221-$235 per night, with top 10% performers commanding $408 or more.

But here's what I find more interesting than the averages: the spread.

Top 10% properties in Melbourne achieve 87%+ occupancy. My own property — Casa Frida on the Mornington Peninsula — is sitting at 85% occupancy right now. In winter. When most hosts are watching tumbleweeds roll through their calendar.

The difference between average and extraordinary isn't luck. It's location, presentation, and hosting.

The Hidden Gold Mines Most People Don't Think About

Everyone pictures beachfront holiday lets when they think about Airbnb. But some of the most consistently booked properties in Victoria aren't beach houses at all.

Hospital Precincts Properties near major hospitals attract visiting family, patients needing short-term accommodation, and medical staff on rotations or placements. This demand is less seasonal than tourism — it shows up year-round, Monday to Friday, rain or shine. If your area has limited hotel supply near a hospital, an Airbnb can fill that gap beautifully.

University Areas Suburbs like Parkville and Clayton in Melbourne have consistent year-round demand from students, their families, visiting academics, and conference attendees. University-adjacent properties reward practical amenities — good WiFi, a desk, parking, self-check-in — more than luxury finishes.

FIFO and Contractor Stays Fly-in-fly-out workers, infrastructure crews, and project contractors need flexible, furnished accommodation close to transport corridors and job sites. These guests often book for longer stays, which reduces your cleaning turnover and creates steadier income.

Relocation and Insurance Stays People between houses — waiting on settlements, displaced after damage, or relocating for work — need furnished short-term accommodation urgently. These bookings can be longer, more predictable, and often come through corporate channels.

Event and Lifestyle Hubs The Mornington Peninsula, Yarra Valley, and Great Ocean Road consistently outperform purely urban markets because guests aren't just coming for a place to sleep — they're coming for an experience. And experience-driven properties command higher nightly rates.

When It Makes Sense — And When It Doesn't

Airbnb in Victoria in 2026 works best when you have:

• A property in a high-demand area with tourism, events, institutional, or work-travel drivers

• Enough expected occupancy and nightly rate to comfortably absorb the 7.5% levy

• Clear legal permission for short stays — strata, council, zoning all checked

• A realistic management plan, because this is more active than long-term rental

It works less well when:

• The property only barely stacks up as a long-term rental — the levy, furnishing, cleaning, and vacancy will eat what's left

• You're in a suburb with no clear demand driver beyond "it might be nice to stay there"

• You haven't checked your strata or council rules

A rough rule I use with my mentoring clients: if you can't clearly answer "why would someone need to stay here specifically?" — keep looking.

The Mornington Peninsula Opportunity

I might be biased, but the data backs me up.

The Mornington Peninsula consistently outperforms standard urban markets. Demand isn't just summer weekends — it's wine and food tourism, wellness retreats, Peninsula Hot Springs visitors, couples escaping Melbourne, and yes, hospital and university-adjacent stays near Frankston and beyond.

The key on the Peninsula — as everywhere — is differentiation. Average is no longer enough. Guests have seen it all. Properties with personality, story, and genuine hosting care are the ones holding 80%+ occupancy through winter while everyone else panics.

Casa Frida is proof. But it didn't happen by accident.

So Is It Worth It?

Yes — if you pick the right property, set it up properly, and commit to hosting with care.

No — if you're hoping a mediocre property in a soft location will quietly pay for itself while you do nothing.

The good news? Getting it right is absolutely learnable. You don't need 12 years of experience. You need the right guidance at the start.