About 60 people spilled onto the road outside the home in Malvern East, in Melbourne's southeast. Teens staying at the Airbnb charged $10 to pay for security and a DJ.
Detective Senior Constable Paul Thomas told reporters the gatecrashers got past three security guards.
It is believed the gang is known to police and is from the Springvale and Dandenong area.
"As soon as the gang members arrived, the people at the party s*** themselves," Thomas said.
The Herald Sun reports the A$161 a night Airbnb rental specifically states no parties or events and the owner's profile says she is a uni student new to Airbnb.
Police turn up to a wild brawl on Saturday night. Photo / Channel 7
A neighbour told the Herald Sun the party was out of control, with young people swearing, throwing bottles and damaging the home.
"Kids started climbing our fence and using chairs to get over the fence to escape from police," the neighbour said.
It is believed the gang was armed with baseball bats.
The usually quiet street was shaken by the violent scenes, with blood splattered on a fence and bloodied handprints near the front door.
Injured partygoers were treated at the scene and one man was taken to hospital with a broken finger and a head injury. It is believed he was smashed with a brick.
No arrests have yet been made and police are investigating.
