Best NZ Suburbs for Rental Yield in 2026
Which New Zealand suburbs are delivering the strongest rental yields right now? Our AI analysis of thousands of NZ property listings reveals the top-performing areas.
Rental yield — annual rent divided by purchase price — is the most direct measure of a rental property's income performance. As mortgage rates remain elevated in 2026, investors are scrutinising yield more carefully than ever. Here's what our data shows across hundreds of recently analysed listings.
What Counts as a Good Rental Yield in NZ?
Historically, a gross rental yield above 6% has been considered acceptable in New Zealand, with 8–10% considered strong. Our scoring model requires a gross yield of at least 9% for a property to be classified as a Rental candidate. Net yield (after rates, insurance, property management and maintenance) typically sits 2–3% below gross.
Data source
Rental estimates are derived from the Ministry of Business, Innovation and Employment (MBIE) Tenancy Services bond data, filtered by suburb and bedroom count. We use the median of recent bonds (past 12 months) as our weekly rent estimate.
Regions Showing Consistent High Yields
Based on our current dataset of analysed listings, the following regions consistently appear in the high-yield bracket. Filter by region on the Properties page to see live listings in each area.
- Whanganui & Palmerston North — Affordable entry prices with strong local rental demand
- Hawke's Bay (Hastings/Napier) — Post-cyclone rebuild demand keeping rents elevated
- Southland (Invercargill) — Very low purchase prices, stable government/trade tenant base
- Manawatu — Student and hospital worker rental demand near Massey University
- Gisborne — Improving infrastructure, low competition from investors
The Yield Trap: Why High Yield Alone Isn't Enough
A 12% gross yield in a declining population area may still be a poor investment if vacancy rates are high and the property is hard to sell. Our scoring model incorporates location score (population trend, rental demand profile) alongside yield to avoid recommending properties in structurally declining markets.
“We've seen properties with 14% gross yield in areas where the vacancy rate is above 8% and median days-to-let is over 60. The income looks great on paper — until you can't find a tenant.”
How to Filter for Yield on FindMyProperty.co.nz
- Go to Properties and select the 'Rental' strategy filter
- Sort by Rental Yield (highest first)
- Use the Verdict filter to focus on Buy and Strong Buy ratings
- Click any property to see the full rental financial model
Screenshot: Filtering for rental yield on the Properties page
Frequently Asked Questions
What rental yield is considered good in New Zealand in 2026?+
A gross rental yield above 6% is generally considered acceptable in NZ. Our model requires at least 9% gross yield for a property to be classified as a Rental candidate. Net yield typically sits 2–3% below gross after deducting rates, insurance, property management and maintenance.
Which NZ regions have the best rental yields?+
Based on our current data, consistently high-yield regions include Whanganui, Palmerston North, Hawke's Bay, Southland (Invercargill), Manawatu and Gisborne — largely due to low purchase prices relative to achievable rents.
Where does FindMyProperty.co.nz get its rental estimate data?+
Rental estimates are derived from MBIE Tenancy Services bond data, filtered by suburb and bedroom count. We use the median weekly rent from bonds lodged in the past 12 months.
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