Canberra’s Highest Rental Yield Suburb Revealed: Investors Turn Eyes to Franklin

Franklin has emerged as Canberra’s standout suburb for property investors chasing rental returns, posting the highest gross rental yield in the ACT and outpacing inner-city rivals.

This result comes as property investors increasingly look toward the nation's capital in search of steady cash flow after a year of strong migration and tight rental supply. With Canberra-wide vacancy rates lingering below 1% according to the ACT government’s April rental market update, the spotlight is now firmly on suburbs that offer both growth and robust rental yields.

Why Franklin is Outperforming

The northern Gungahlin suburb of Franklin, located about 13 kilometres from Canberra’s city centre, has seen strong rental competition spilling over from neighbouring Gungahlin Town Centre and Harrison. Proximity to the light rail on Flemington Road and the bustling local Franklin Shops precinct has added to its appeal for young professionals and families alike. Major employers, such as the CSIRO's Black Mountain campus and the University of Canberra in neighbouring Belconnen, are within commuting distance, adding to long-term rental demand.

Data from realestate.com.au’s June 2026 suburb performance summary shows Franklin’s median house price sitting at $880,000, while median weekly rent for a house is $790. That equates to a gross rental yield of about 4.7%-currently the strongest for a Canberra suburb with a significant volume of house sales and new residential supply.

Underlying Demand and Investor Outlook

Several factors underpin Franklin’s rental yield lead. The expansion of The Marketplace Gungahlin, just a few stops up the light rail, continues to generate employment in the corridor. Meanwhile, population forecasts from the ACT Planning Directorate identify the Gungahlin district as one of the fastest-growing in the territory, supporting ongoing tenant demand.

Investors are also looking at developments such as the Franklin Rise townhouse project and the continued sell-out of apartments along Nullarbor Avenue-both reflecting confidence in local demand. Across the ACT, June figures from CoreLogic reported average gross rental yields for houses at 3.7%, making Franklin’s nearly 1 percentage point premium notable amid a supply-constrained market.

With interest rates stabilising and demand for affordable, well-connected housing stronger than ever, Franklin’s combination of light rail access, developing amenities and steady new supply is set to keep it firmly on the radar for property investors heading into spring. Prospective buyers hunting for high rental returns may also want to broaden their search to nearby areas such as Harrison and Moncrieff, but Franklin’s numbers position it at the front of Canberra’s rental yield race for now.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.