Suburb Overview
Cheltenham is an outer-metropolitan suburb of Melbourne, Australia, with a population of approximately 23,992, making it a sizeable community. Located approximately 19 km from the Melbourne CBD, Cheltenham is a outer metro area in Victoria. The median household income is $99,788 per year.
Location
Key Indicators
Postcode
3192
Postcode for Cheltenham, from a community postcode dataset cross-checked against Australia Post. A postcode may cover multiple suburbs.
Australia Post Postcode Finder →
Population
23,992
Usual resident population at the most recent census.
Median weekly rent
$430/wk
Median weekly rent recorded at the 2021 Census — market rents have risen since, so treat this as a dated baseline, not a current figure.
Median household income
$99,788
Annual median household income (before tax) across all households.
Distance to CBD
19 km
Straight-line distance from the suburb centroid to the nearest capital city CBD. Actual driving distance will be longer.
Sale prices & yield
Median house price
$1,265,000
Median house sale price — as at 2025 (preliminary), Valuer-General Victoria (CC BY 4.0).
Median unit price
$506,500
Median unit sale price — as at 2025 (preliminary), Valuer-General Victoria (CC BY 4.0).
Housing
Median monthly mortgage
$2,200/mo
Monthly median mortgage repayment for households currently paying off a mortgage.
Home type
54% houses
Proportion of separate houses versus units, townhouses, and other home types. Useful for investors assessing rental demand mix.
Why People Like Living in Cheltenham
- Middle-ring location about 19 km from Melbourne — balance of commute and affordability.
- Plenty of schooling options nearby — around 6 schools within reach.
- Good green-space access with around 10 parks and reserves nearby.
- Reasonable transport access — car-friendly with some public transport options.
- Newer estates with modern homes and family-sized blocks.
Who Cheltenham Suits
Pros and Cons
Pros
- Rent sits within an affordable share of local incomes, supporting tenant demand.
- Access to several schools nearby (around 6).
- Local parks and reserves (around 10) add to liveability.
- Solid transport links into employment hubs.
Cons
- Median mortgage sits above the Victoria state median — entry costs are stretched.
- Traffic can build during peak hours, especially on arterial roads.
Investment Insight
With 23,992 residents, Cheltenham is one of Victoria's more populous suburbs — roughly 3.2× the state median of 7,416 — giving it a deep buyer and tenant pool that typically supports higher transaction volumes and shorter average days on market. Households here earn $99,788/year on average — 5% above the VIC suburb median of $95,160 — a modest premium that supports resilient owner-occupier demand. At the 2021 Census, rent of $430/week covered 85% of the $2,200/month median mortgage recorded at the same Census, leaving a gap of roughly $337/month at the time. Rents and repayments have both risen since — re-run the numbers with current figures before drawing conclusions. 19 km from Melbourne places Cheltenham in the middle commuter belt, close enough for daily trips by car or rail but at a materially lower price point than inner suburbs. Only 54% of dwellings are separate houses (vs 78% state median), so this is a unit-heavy market where body-corporate decisions and strata supply meaningfully shape investor returns.
Investment Tip
This suburb suits long-term investors due to steady population growth and affordable entry prices. Look for established streets close to schools and shops rather than raw new-estate land. At the 2021 Census, local rents consumed roughly 22% of household income — a dated but useful sanity check on tenant affordability.
Cheltenham vs Victoria Median
How Cheltenham stacks up against the median of all Victoria suburbs in our dataset. Positive values mean Cheltenham sits above the state median; negative means below.
| Metric | Cheltenham | VIC median | Δ vs state |
|---|---|---|---|
| Population | 23,992 | 7,416 | +224% |
| Median household income | $99,788/yr | $95,160/yr | +5% |
| Median rent (weekly, 2021 Census) | $430 | $380 | +13% |
| Median mortgage (monthly, 2021 Census) | $2,200 | $1,950 | +13% |
| Distance to CBD | 19 km | 32 km | -41% |
| Separate houses | 54% | 78% | -24pp |
Investor Checklist
Pre-inspection briefing for Cheltenham — every item is derived from public datasets, with full citations in our data sources page.
- Market depth: 23,992 residents — 324% of the VIC suburb median (7,416).
- Purchasing power: median household income $99,788/year (+5% vs Victoria suburb median of $95,160).
- Cash-flow coverage (2021 Census): $430/week rent (≈ $1,863/month) covered ~85% of the $2,200/month median mortgage at the 2021 Census — verify against current rents and rates.
- CBD access: 19 km straight-line from Melbourne (state suburb median 32 km).
- Dwelling mix: 54% separate houses — mixed market (vs 78% state median).
- Rate stress-test: budget ~$220/month extra for a 1-percentage-point RBA rate rise on top of the $2,200/month median repayment.
- Tenant rent burden: 22% of the median household income is spent on rent — comfortably affordable.
Investment Strategy
Solid buy-and-hold profile: a population of 23,992 and household income close to the VIC median ($99,788 vs $95,160) give the market enough depth for patient capital growth without the premium entry price of inner suburbs.
Strong rental coverage at the 2021 Census: $430/week (~$1,863/month) covered 85% of the $2,200/month median mortgage, a shortfall of just $337/month. Both rents and repayments have moved since 2021 — verify current figures, though this suburb has historically leaned cash-flow-friendly.
Only 54% of dwellings are separate houses (vs 78% VIC median) — this is a unit and townhouse market, where cosmetic flips struggle against body-corporate restrictions, thinner after-reno uplift and competing new supply.
Risk Factors
- Interest-rate sensitivity: the $2,200/month median mortgage in Cheltenham means a 1-percentage-point RBA rate rise could add roughly $220/month to repayments, reducing buyer borrowing capacity and cooling prices.
- Regulatory risk: changes to Australian tax settings (negative gearing, CGT discount, foreign-buyer surcharges, land-tax thresholds) could reshape after-tax returns in Cheltenham regardless of local market conditions.
- Market cycle risk: property markets are cyclical, so stress-test your projections in Cheltenham with a 10–15% price pullback scenario before committing capital — returns to date are not a guarantee of future performance.
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Property values in Cheltenham should track the wider Victoria market through 2026, with the $99,788/year median household income (5% above the $95,160 state median) keeping the suburb firmly mid-pack. At the 2021 Census, rental coverage ran at ~85% of the typical mortgage ($1,863/month rent vs $2,200/month repayment), keeping cash flow in positive or near-neutral territory. Verify against current rents and rates. Overall investor sentiment for Cheltenham is balanced heading into the second half of 2026, based on its income, rent and mortgage profile relative to the Victoria median.
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Frequently Asked Questions
Is Cheltenham a good suburb for investment?
Whether Cheltenham suits you depends on your strategy, but the fundamentals are concrete: a population of 23,992, a median household income of $99,788/year and median weekly rent of $430. Weigh those against your goal — cash flow, capital growth, or a value-add renovation — each of which we break down with suburb-specific ABS numbers elsewhere on this page.
What drives property demand in Cheltenham?
The main demand drivers in Cheltenham are proximity to Melbourne (19 km), an above-state-median household income of $99,788/year, a dwelling mix that is 54% separate houses. Together these shape both owner-occupier and tenant demand.
What is the population of Cheltenham?
Cheltenham has a usual resident population of approximately 23,992, compared with a Victoria suburb median of 7,416 — placing it in the upper half of the state's suburbs by size. Population is the clearest proxy for market depth: more residents mean more transactions and typically a shorter average days-on-market on resale.
How far is Cheltenham from the Melbourne CBD?
Cheltenham sits 19 km straight-line from the Melbourne CBD. This is comfortable commuter territory, with reasonable rail and road access to the city.
What is the median rent in Cheltenham?
The most recent census recorded a median weekly rent of $430 in Cheltenham, equating to approximately $22,360/year in gross rental income (state median $380/week). Market rents have typically drifted above the recorded figure — verify against current listings on realestate.com.au and Domain before making an offer.
What is the typical mortgage repayment in Cheltenham?
The median monthly mortgage repayment in Cheltenham is $2,200, or approximately $26,400/year (vs $1,950/month state median). Stress-test your own borrowing at rates 1–2 percentage points above today's to make sure you can still service the loan through an RBA tightening cycle.
Is Cheltenham cash-flow positive for investors?
A median weekly rent of $430 works out to $1,863/month, covering 85% of the median mortgage repayment of $2,200/month. That leaves a $337/month shortfall (around $4,044/year before tax benefits), so a typical owner-occupier-priced property here is negatively geared. Actual cash flow depends on your deposit, loan terms, ownership costs and marginal tax rate — run the full numbers in our rental yield calculator.
What are the main risks of investing in Cheltenham?
The main risks are interest-rate sensitivity on the $2,200 median mortgage, the broader Victoria market cycle. Each of these is covered in the Risk Factors section above with suburb-specific numbers rather than generic warnings.
How we built this Cheltenham profile
The population, postcode, median household income, and dwelling mix on this page are real figures from the ABS 2021 Census (income is the ABS median weekly household income annualised) and Australia Post. Distance to the CBD is calculated from the suburb's ABS centroid. The Census median rent and mortgage repayment are 2021 figures and are clearly labelled as such wherever they appear — they are five years old and have moved substantially since. We do not publish an investment score or school/park counts for this suburb. See our methodology and data sources for exactly what's measured and what's estimated.