McKee, who performed using the name Scepaz, was attacked with a samurai sword and found dead by emergency services, news.com.au reports.
The Australian hip-hop community has paid tribute to the 30-year-old, who founded his own label, Sub Conscious Records, in 2007.
"I would see him at gigs, play his music on the show and he was always respectful," the Triple J's Hip Hop show shared on Facebook. "I know how hard it is to lose a loved one, especially at such a young age, so I'd like to wish strength & love to his family, crew and supporters. Blessings."
Police are now looking for a woman in her early 20s with bleached blonde hair and dark roots, and a man ins his late 20s described as "caucasian in appearance and with short brown hair".
Anyone with information should call Crime Stoppers on 1800 333 000.