What Are the Best Places to Invest in Airbnb in Malaysia?

Source: AirROI Reviewed by Jun Zhou , Founder @ AirROI
Updated:

The short-term rental market in Malaysia spans 100 cities tracked in AirROI's 2026 dataset, ranging from mature urban markets with thousands of active listings to emerging destinations where early operators still have pricing leverage. Supply growth, regulation, and seasonal demand vary significantly across the region — making market selection one of the highest-leverage decisions an Airbnb investor can make.

This page ranks the best Airbnb markets in Malaysia across four dimensions: market depth (active listings), revenue, nightly rate (ADR), and occupancy rate. Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur leads by market size with 15,532 active listings and $555/month revenue. Across all ranked markets, average occupancy is 23.0% with $444/month in average revenue and $84/night ADR. 100 of 100 markets carry a low regulation profile — a key consideration for investors evaluating compliance costs and time-to-market.

Rankings based on AirROI's analysis of 20,000,000+ short-term rental listings across revenue, ADR, occupancy, and regulation. See ranking methodology.

Top Airbnb Markets in Malaysia by Active Listings

Active listing count is the most direct measure of a market's depth, maturity, and investor confidence. Cities with the most Airbnb listings in Malaysia attract the highest volume of travelers and offer the most reliable benchmarking data for pricing and revenue projections. Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur leads with 15,532 active short-term rental listings and $555/month in average revenue.

#MarketActive Listings (TTM)Revenue/moADROccupancyRegulation
1Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur15,532$555$7233.7%Low
2Johor Bahru, Johor4,324$574$8228.4%Low
3George Town, Penang3,612$688$8632.6%Low
4Malacca City, Malacca2,680$501$9421.5%Low
5Petaling Jaya, Selangor1,980$333$5028.6%Low
6Ipoh, Perak1,902$396$7622.5%Low
7Iskandar Puteri, Johor1,874$424$6526.9%Low
8Sepang, Selangor1,623$244$4624.1%Low
9Shah Alam, Selangor1,530$273$5124.8%Low
10Kota Kinabalu, Sabah1,507$594$8230.6%Low
11Kajang Municipal Council, Selangor1,127$362$6425.1%Low
12Kuching, Sarawak1,108$361$5429.0%Low
13Genting Highlands, Pahang1,076$402$12218.0%Low
14Subang Jaya, Selangor853$415$6230.7%Low
15Cameron Highlands, Pahang668$485$7923.7%Low
16Port Dickson, Negeri Sembilan663$467$11217.5%Low
17Kuantan, Pahang600$356$8020.1%Low
18Ampang Jaya Municipal Council, Gombak525$397$7529.5%Low
19Kota Bharu, Kelantan432$221$5520.0%Low
20Bukit Mertajam, Penang397$293$6321.2%Low
21Malacca, Malacca376$599$10023.5%Low
22Kuala Terengganu, Terengganu359$335$7620.3%Low
23Kuah, Kedah313$760$9031.8%Low
24Nilai, Negeri Sembilan255$244$4426.6%Low
25Bandar Penawar, Johor247$512$12417.9%Low
26Subang Jaya City Council, Selangor235$371$5730.2%Low
27Seremban, Negeri Sembilan231$347$9717.7%Low
28Taiping, Perak225$388$7919.7%Low
29Kampung Sungai Karang Darat, Pahang216$323$7718.1%Low
30Selayang Municipal Council, Selangor216$459$10619.0%Low
31Semporna, Sabah214$431$7823.7%Low
32Langkawi, Kedah200$1,102$13132.0%Low
33Tebrau, Johor194$426$6426.1%Low
34Tanjung Aru, Sabah178$555$6231.3%Low
35Ayer Keroh, Malacca169$406$9317.5%Low
36Donggongon, Sabah163$194$5619.5%Low
37Klang City, Klang152$476$9024.9%Low
38Putrajaya, Putrajaya152$541$8427.1%Low
39Kluang, Johor150$350$8820.2%Low
40Cenang Beach, Kedah150$358$8625.3%Low
41Pasir Gudang, Johor146$346$7124.2%Low
42Kampung Sembulan Lama, Sabah145$404$9425.4%Low
43Sandakan, Sabah145$297$5823.0%Low
44Sitiawan, Perak144$208$7316.9%Low
45Sibu, Sarawak139$338$6222.9%Low
46Cheras, Selangor136$357$4533.7%Low
47Brinchang, Pahang133$543$6829.6%Low
48Batu Pahat, Johor122$378$9817.3%Low
49Kulai, Johor116$501$10125.2%Low
50Muar, Johor113$372$9315.8%Low
51Butterworth, Penang101$399$6229.5%Low
52Kampar, Perak100$156$4415.6%Low
53Miri, Sarawak98$300$6121.8%Low
54Bentong, Pahang95$847$18018.1%Low
55Sungai Petani, Kedah94$323$7420.8%Low
56Alor Setar, Kedah91$358$7721.5%Low
57Alor Gajah, Malacca90$713$14618.1%Low
58Banting, Selangor90$177$7714.2%Low
59Pulau Sebang, Malacca89$859$20118.5%Low
60Dungun, Terengganu87$240$6717.3%Low
61Pangkor Island, Perak86$459$10717.2%Low
62Bukit Tinggi, Pahang80$1,345$17721.9%Low
63Tengah Island, Kedah79$1,661$18431.1%Low
64Sekinchan, Sabak Bernam79$469$12616.4%Low
65Teluk Intan, Perak76$282$7517.1%Low
66Tawau, Sabah73$285$6121.8%Low
67Batu Caves, Selangor72$286$4428.1%Low
68Dengkil, Selangor72$169$4915.7%Low
69Mersing, Johor69$370$7523.6%Low
70Lumut, Perak68$138$7316.3%Low
71Kangar, Perlis68$242$5620.3%Low
72Masai, Johor67$344$6424.2%Low
73Paya Mempelam Village, Kedah63$645$8229.2%Low
74Fraser's Hill, Pahang63$417$10717.1%Low
75Cyberjaya, Selangor63$158$2926.3%Low
76Kuala Selangor, Selangor61$343$10214.9%Low
77Hang Tuah Jaya Municipal Council, Malacca57$506$12617.6%Low
78Tioman, Pahang56$316$6725.9%Low
79Seri Kembangan, Selangor56$298$4131.1%Low
80Seri Iskandar, Perak53$237$9320.0%Low
81Kuala Muda Village, Kedah52$632$9928.9%Low
82Chukai, Terengganu52$255$5921.2%Low
83Tanah Rata, Pahang50$446$9524.6%Low
84Plentong, Johor46$431$8522.8%Low
85Kampung Padang Gaong, Kedah46$902$8839.5%Low
86Puchong, Selangor46$359$10022.8%Low
87Tanjung Kling, Malacca43$252$8214.1%Low
88Balok, Pahang41$499$8420.9%Low
89Bayan Lepas, Penang41$478$5534.8%Low
90Kuala Kubu Bharu, Selangor41$881$13121.2%Low
91Seri Manjung, Perak40$241$7218.1%Low
92Api-Api Center, Sabah40$516$7127.5%Low
93Kampung Masjid Lama, Kedah39$268$6219.7%Low
94Jasin, Malacca39$605$13017.6%Low
95Kampung Mesilau, Sabah39$1,275$13029.7%Low
96Kampung Siru Melayu, Sarawak33$655$10522.0%Low
97Masjid Tanah, Malacca31$415$10416.9%Low
98Kuala Kangsar, Perak31$225$5619.9%Low
99Kepala Batas, Pulau Pinang31$276$6817.2%Low
100Jitra, Kedah30$176$4917.2%Low

Most Profitable Airbnb Markets in Malaysia by Revenue

The most profitable Airbnb cities in Malaysia are those where hosts earn the highest average monthly revenue per listing — the single most telling indicator of a market's income potential. Tengah Island, Kedah leads with $1,661/month at $184 ADR and 31.1% occupancy. Whether you are evaluating your first STR investment or benchmarking an existing property, these top-earning Airbnb markets show where vacation rentals generate the greatest short-term rental income.

#MarketRevenue/moActive Listings (TTM)ADROccupancyRegulation
1Tengah Island, Kedah$1,66179$18431.1%Low
2Bukit Tinggi, Pahang$1,34580$17721.9%Low
3Kampung Mesilau, Sabah$1,27539$13029.7%Low
4Langkawi, Kedah$1,102200$13132.0%Low
5Kampung Padang Gaong, Kedah$90246$8839.5%Low
6Kuala Kubu Bharu, Selangor$88141$13121.2%Low
7Pulau Sebang, Malacca$85989$20118.5%Low
8Bentong, Pahang$84795$18018.1%Low
9Kuah, Kedah$760313$9031.8%Low
10Alor Gajah, Malacca$71390$14618.1%Low
11George Town, Penang$6883,612$8632.6%Low
12Kampung Siru Melayu, Sarawak$65533$10522.0%Low
13Paya Mempelam Village, Kedah$64563$8229.2%Low
14Kuala Muda Village, Kedah$63252$9928.9%Low
15Jasin, Malacca$60539$13017.6%Low
16Malacca, Malacca$599376$10023.5%Low
17Kota Kinabalu, Sabah$5941,507$8230.6%Low
18Johor Bahru, Johor$5744,324$8228.4%Low
19Tanjung Aru, Sabah$555178$6231.3%Low
20Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$55515,532$7233.7%Low
21Brinchang, Pahang$543133$6829.6%Low
22Putrajaya, Putrajaya$541152$8427.1%Low
23Api-Api Center, Sabah$51640$7127.5%Low
24Bandar Penawar, Johor$512247$12417.9%Low
25Hang Tuah Jaya Municipal Council, Malacca$50657$12617.6%Low
26Kulai, Johor$501116$10125.2%Low
27Malacca City, Malacca$5012,680$9421.5%Low
28Balok, Pahang$49941$8420.9%Low
29Cameron Highlands, Pahang$485668$7923.7%Low
30Bayan Lepas, Penang$47841$5534.8%Low
31Klang City, Klang$476152$9024.9%Low
32Sekinchan, Sabak Bernam$46979$12616.4%Low
33Port Dickson, Negeri Sembilan$467663$11217.5%Low
34Pangkor Island, Perak$45986$10717.2%Low
35Selayang Municipal Council, Selangor$459216$10619.0%Low
36Tanah Rata, Pahang$44650$9524.6%Low
37Plentong, Johor$43146$8522.8%Low
38Semporna, Sabah$431214$7823.7%Low
39Tebrau, Johor$426194$6426.1%Low
40Iskandar Puteri, Johor$4241,874$6526.9%Low
41Fraser's Hill, Pahang$41763$10717.1%Low
42Subang Jaya, Selangor$415853$6230.7%Low
43Masjid Tanah, Malacca$41531$10416.9%Low
44Ayer Keroh, Malacca$406169$9317.5%Low
45Kampung Sembulan Lama, Sabah$404145$9425.4%Low
46Genting Highlands, Pahang$4021,076$12218.0%Low
47Butterworth, Penang$399101$6229.5%Low
48Ampang Jaya Municipal Council, Gombak$397525$7529.5%Low
49Ipoh, Perak$3961,902$7622.5%Low
50Taiping, Perak$388225$7919.7%Low
51Batu Pahat, Johor$378122$9817.3%Low
52Muar, Johor$372113$9315.8%Low
53Subang Jaya City Council, Selangor$371235$5730.2%Low
54Mersing, Johor$37069$7523.6%Low
55Kajang Municipal Council, Selangor$3621,127$6425.1%Low
56Kuching, Sarawak$3611,108$5429.0%Low
57Puchong, Selangor$35946$10022.8%Low
58Cenang Beach, Kedah$358150$8625.3%Low
59Alor Setar, Kedah$35891$7721.5%Low
60Cheras, Selangor$357136$4533.7%Low
61Kuantan, Pahang$356600$8020.1%Low
62Kluang, Johor$350150$8820.2%Low
63Seremban, Negeri Sembilan$347231$9717.7%Low
64Pasir Gudang, Johor$346146$7124.2%Low
65Masai, Johor$34467$6424.2%Low
66Kuala Selangor, Selangor$34361$10214.9%Low
67Sibu, Sarawak$338139$6222.9%Low
68Kuala Terengganu, Terengganu$335359$7620.3%Low
69Petaling Jaya, Selangor$3331,980$5028.6%Low
70Sungai Petani, Kedah$32394$7420.8%Low
71Kampung Sungai Karang Darat, Pahang$323216$7718.1%Low
72Tioman, Pahang$31656$6725.9%Low
73Miri, Sarawak$30098$6121.8%Low
74Seri Kembangan, Selangor$29856$4131.1%Low
75Sandakan, Sabah$297145$5823.0%Low
76Bukit Mertajam, Penang$293397$6321.2%Low
77Batu Caves, Selangor$28672$4428.1%Low
78Tawau, Sabah$28573$6121.8%Low
79Teluk Intan, Perak$28276$7517.1%Low
80Kepala Batas, Pulau Pinang$27631$6817.2%Low
81Shah Alam, Selangor$2731,530$5124.8%Low
82Kampung Masjid Lama, Kedah$26839$6219.7%Low
83Chukai, Terengganu$25552$5921.2%Low
84Tanjung Kling, Malacca$25243$8214.1%Low
85Sepang, Selangor$2441,623$4624.1%Low
86Nilai, Negeri Sembilan$244255$4426.6%Low
87Kangar, Perlis$24268$5620.3%Low
88Seri Manjung, Perak$24140$7218.1%Low
89Dungun, Terengganu$24087$6717.3%Low
90Seri Iskandar, Perak$23753$9320.0%Low
91Kuala Kangsar, Perak$22531$5619.9%Low
92Kota Bharu, Kelantan$221432$5520.0%Low
93Sitiawan, Perak$208144$7316.9%Low
94Donggongon, Sabah$194163$5619.5%Low
95Banting, Selangor$17790$7714.2%Low
96Jitra, Kedah$17630$4917.2%Low
97Dengkil, Selangor$16972$4915.7%Low
98Cyberjaya, Selangor$15863$2926.3%Low
99Kampar, Perak$156100$4415.6%Low
100Lumut, Perak$13868$7316.3%Low

Most Expensive Airbnb Markets in Malaysia by Nightly Rate

The average daily rate (ADR) measures how much guests pay per night in each market, making it the clearest indicator of a city's short-term rental pricing power. Pulau Sebang, Malacca commands the highest Airbnb nightly rate in Malaysia at $201/night, generating $859/month at 18.5% occupancy. Markets with premium nightly pricing typically feature high-demand destinations where travelers pay a significant premium over hotel alternatives.

#MarketADRActive Listings (TTM)Revenue/moOccupancyRegulation
1Pulau Sebang, Malacca$20189$85918.5%Low
2Tengah Island, Kedah$18479$1,66131.1%Low
3Bentong, Pahang$18095$84718.1%Low
4Bukit Tinggi, Pahang$17780$1,34521.9%Low
5Alor Gajah, Malacca$14690$71318.1%Low
6Langkawi, Kedah$131200$1,10232.0%Low
7Kuala Kubu Bharu, Selangor$13141$88121.2%Low
8Kampung Mesilau, Sabah$13039$1,27529.7%Low
9Jasin, Malacca$13039$60517.6%Low
10Sekinchan, Sabak Bernam$12679$46916.4%Low
11Hang Tuah Jaya Municipal Council, Malacca$12657$50617.6%Low
12Bandar Penawar, Johor$124247$51217.9%Low
13Genting Highlands, Pahang$1221,076$40218.0%Low
14Port Dickson, Negeri Sembilan$112663$46717.5%Low
15Pangkor Island, Perak$10786$45917.2%Low
16Fraser's Hill, Pahang$10763$41717.1%Low
17Selayang Municipal Council, Selangor$106216$45919.0%Low
18Kampung Siru Melayu, Sarawak$10533$65522.0%Low
19Masjid Tanah, Malacca$10431$41516.9%Low
20Kuala Selangor, Selangor$10261$34314.9%Low
21Kulai, Johor$101116$50125.2%Low
22Puchong, Selangor$10046$35922.8%Low
23Malacca, Malacca$100376$59923.5%Low
24Kuala Muda Village, Kedah$9952$63228.9%Low
25Batu Pahat, Johor$98122$37817.3%Low
26Seremban, Negeri Sembilan$97231$34717.7%Low
27Tanah Rata, Pahang$9550$44624.6%Low
28Malacca City, Malacca$942,680$50121.5%Low
29Kampung Sembulan Lama, Sabah$94145$40425.4%Low
30Muar, Johor$93113$37215.8%Low
31Ayer Keroh, Malacca$93169$40617.5%Low
32Seri Iskandar, Perak$9353$23720.0%Low
33Kuah, Kedah$90313$76031.8%Low
34Klang City, Klang$90152$47624.9%Low
35Kampung Padang Gaong, Kedah$8846$90239.5%Low
36Kluang, Johor$88150$35020.2%Low
37Cenang Beach, Kedah$86150$35825.3%Low
38George Town, Penang$863,612$68832.6%Low
39Plentong, Johor$8546$43122.8%Low
40Putrajaya, Putrajaya$84152$54127.1%Low
41Balok, Pahang$8441$49920.9%Low
42Tanjung Kling, Malacca$8243$25214.1%Low
43Kota Kinabalu, Sabah$821,507$59430.6%Low
44Paya Mempelam Village, Kedah$8263$64529.2%Low
45Johor Bahru, Johor$824,324$57428.4%Low
46Kuantan, Pahang$80600$35620.1%Low
47Cameron Highlands, Pahang$79668$48523.7%Low
48Taiping, Perak$79225$38819.7%Low
49Semporna, Sabah$78214$43123.7%Low
50Banting, Selangor$7790$17714.2%Low
51Kampung Sungai Karang Darat, Pahang$77216$32318.1%Low
52Alor Setar, Kedah$7791$35821.5%Low
53Kuala Terengganu, Terengganu$76359$33520.3%Low
54Ipoh, Perak$761,902$39622.5%Low
55Teluk Intan, Perak$7576$28217.1%Low
56Mersing, Johor$7569$37023.6%Low
57Ampang Jaya Municipal Council, Gombak$75525$39729.5%Low
58Sungai Petani, Kedah$7494$32320.8%Low
59Sitiawan, Perak$73144$20816.9%Low
60Lumut, Perak$7368$13816.3%Low
61Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$7215,532$55533.7%Low
62Seri Manjung, Perak$7240$24118.1%Low
63Pasir Gudang, Johor$71146$34624.2%Low
64Api-Api Center, Sabah$7140$51627.5%Low
65Brinchang, Pahang$68133$54329.6%Low
66Kepala Batas, Pulau Pinang$6831$27617.2%Low
67Tioman, Pahang$6756$31625.9%Low
68Dungun, Terengganu$6787$24017.3%Low
69Iskandar Puteri, Johor$651,874$42426.9%Low
70Tebrau, Johor$64194$42626.1%Low
71Kajang Municipal Council, Selangor$641,127$36225.1%Low
72Masai, Johor$6467$34424.2%Low
73Bukit Mertajam, Penang$63397$29321.2%Low
74Kampung Masjid Lama, Kedah$6239$26819.7%Low
75Butterworth, Penang$62101$39929.5%Low
76Tanjung Aru, Sabah$62178$55531.3%Low
77Subang Jaya, Selangor$62853$41530.7%Low
78Sibu, Sarawak$62139$33822.9%Low
79Tawau, Sabah$6173$28521.8%Low
80Miri, Sarawak$6198$30021.8%Low
81Chukai, Terengganu$5952$25521.2%Low
82Sandakan, Sabah$58145$29723.0%Low
83Subang Jaya City Council, Selangor$57235$37130.2%Low
84Donggongon, Sabah$56163$19419.5%Low
85Kuala Kangsar, Perak$5631$22519.9%Low
86Kangar, Perlis$5668$24220.3%Low
87Kota Bharu, Kelantan$55432$22120.0%Low
88Bayan Lepas, Penang$5541$47834.8%Low
89Kuching, Sarawak$541,108$36129.0%Low
90Shah Alam, Selangor$511,530$27324.8%Low
91Petaling Jaya, Selangor$501,980$33328.6%Low
92Jitra, Kedah$4930$17617.2%Low
93Dengkil, Selangor$4972$16915.7%Low
94Sepang, Selangor$461,623$24424.1%Low
95Cheras, Selangor$45136$35733.7%Low
96Kampar, Perak$44100$15615.6%Low
97Batu Caves, Selangor$4472$28628.1%Low
98Nilai, Negeri Sembilan$44255$24426.6%Low
99Seri Kembangan, Selangor$4156$29831.1%Low
100Cyberjaya, Selangor$2963$15826.3%Low

Highest Occupancy Airbnb Markets in Malaysia

Airbnb occupancy rate measures the percentage of available nights actually booked — the most telling indicator of short-term rental demand in a market. Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur leads Malaysia with 33.7% occupancy, $555/month revenue, and 15,532 active listings. Markets with the highest STR occupancy rates reflect strong, sustained guest demand — a critical signal for investors evaluating where properties will stay consistently booked year-round. This ranking is filtered to markets with 300+ listings to ensure statistical reliability.

#MarketOccupancyActive Listings (TTM)Revenue/moADRRegulation
1Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur33.7%15,532$555$72Low
2George Town, Penang32.6%3,612$688$86Low
3Kuah, Kedah31.8%313$760$90Low
4Subang Jaya, Selangor30.7%853$415$62Low
5Kota Kinabalu, Sabah30.6%1,507$594$82Low
6Ampang Jaya Municipal Council, Gombak29.5%525$397$75Low
7Kuching, Sarawak29.0%1,108$361$54Low
8Petaling Jaya, Selangor28.6%1,980$333$50Low
9Johor Bahru, Johor28.4%4,324$574$82Low
10Iskandar Puteri, Johor26.9%1,874$424$65Low
11Kajang Municipal Council, Selangor25.1%1,127$362$64Low
12Shah Alam, Selangor24.8%1,530$273$51Low
13Sepang, Selangor24.1%1,623$244$46Low
14Cameron Highlands, Pahang23.7%668$485$79Low
15Malacca, Malacca23.5%376$599$100Low
16Ipoh, Perak22.5%1,902$396$76Low
17Malacca City, Malacca21.5%2,680$501$94Low
18Bukit Mertajam, Penang21.2%397$293$63Low
19Kuala Terengganu, Terengganu20.3%359$335$76Low
20Kuantan, Pahang20.1%600$356$80Low
21Kota Bharu, Kelantan20.0%432$221$55Low
22Genting Highlands, Pahang18.0%1,076$402$122Low
23Port Dickson, Negeri Sembilan17.5%663$467$112Low

How to Choose an Airbnb Investment Market in Malaysia

No single ranking tells the full story. The best Airbnb market for a given investor depends on their capital, risk tolerance, operating model, and income goals. The four ranking dimensions on this page — market depth, revenue, ADR, and occupancy — serve different investor profiles.

If you prioritize predictable cash flow, start with the occupancy rankings. Markets where occupancy exceeds 55% offer consistent bookings and lower vacancy risk. High-occupancy markets may not have the highest nightly rates, but their revenue stability makes them better suited for mortgage-backed investments where monthly debt coverage matters more than peak earnings.

If you're targeting maximum income per property, use the revenue rankings. Revenue is the product of nightly rate and occupancy — it captures the combined effect of both. The highest-revenue Airbnb markets in Malaysia tend to be destination cities where travelers stay longer and pay a premium for entire-home listings.

If you're evaluating luxury or premium positioning, the ADR rankings show where guests are willing to pay top dollar per night. High-ADR markets reward property upgrades, professional photography, and amenity investments. However, a high nightly rate with low occupancy may generate less income than a moderately priced listing that stays booked consistently.

If you want the deepest market data, the active listings rankings identify cities with the largest short-term rental supply. More listings mean more comparable properties for pricing, more data points for revenue projections, and typically a more liquid resale market if your investment thesis changes.

In all cases, check the regulation column before committing capital. A profitable market with high regulation may require permits, annual caps on rental days, or costly compliance steps that erode returns. Markets with low regulation offer faster time-to-market but may tighten rules as STR supply grows.

Short-Term Rental Regulation in Malaysia

Understanding the regulatory environment is critical for any Airbnb investment in Malaysia. Regulation affects licensing costs, annual operating limits, tax obligations, and the long-term viability of a short-term rental strategy.

Across the 100 markets ranked on this page: 100 have a low regulation profile (generally operator-friendly with minimal licensing requirements), 0 have medium regulation (some permit or registration requirements), and 0 have high regulation (strict licensing, annual rental day caps, or active enforcement). Markets with low regulation offer the lowest barrier to entry, while high-regulation markets may still be profitable — but require careful compliance planning and often limit the number of properties a single operator can manage.

AirROI classifies regulation as a market-level signal based on available ordinance data and platform registration patterns. This is not legal advice — always verify current local ordinances, as short-term rental rules can change rapidly, especially in high-growth markets where municipalities are actively responding to STR expansion.

How We Rank the Best Airbnb Investment Markets in Malaysia

This page ranks Airbnb markets in Malaysia across four dimensions that matter most to short-term rental investors and operators: market depth (active listings), revenue potential (monthly income per listing), pricing power (average daily rate), and booking demand (occupancy rate). Each ranking uses the same underlying dataset but sorts by a different metric, giving you multiple lenses to evaluate where to invest in Airbnb in Malaysia.

No single metric tells the full story. A market with high ADR but low occupancy may underperform one with moderate pricing and strong demand. Revenue captures the combined effect of rate and occupancy, while active listings signal whether a market has enough depth for reliable benchmarking and a liquid resale environment. We include regulation data alongside every ranking so you can weigh compliance risk before committing capital.

Ranking Methodology & Data Sources

  • Active Listings (TTM): The count of active short-term rental listings in each market over the trailing twelve months — a proxy for market maturity, data reliability, and investor confidence in Malaysia.
  • Monthly Revenue: Average gross revenue per listing per month — the bottom-line metric for evaluating Airbnb profitability in Malaysia and projecting cash flow.
  • Average Daily Rate (ADR): The mean nightly booking price across all active listings — the clearest measure of a market's short-term rental pricing power.
  • Occupancy Rate: Percentage of available nights booked — the demand signal that determines how much of your nightly rate converts to actual income. Occupancy rankings are filtered to markets with 300+ listings to exclude small markets with unreliable averages.
  • Regulation: An indicator of the local regulatory climate in Malaysia, from low (operator-friendly) to high (strict licensing and enforcement) — essential for assessing compliance risk.

All data is sourced from AirROI's proprietary analytics pipeline, which tracks 20,000,000+ properties across 190+ countries. Metrics are recalculated on a rolling basis using trailing twelve-month aggregates from active listings. For full methodology, see the data methodology page.

Frequently Asked Questions About the Best Airbnb Markets in Malaysia

These quick answers summarize the most common investor and operator questions using AirROI's latest market data for Malaysia.

What are the best places to invest in Airbnb in Malaysia?

Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur leads this ranking for Malaysia with 15,532 active listings — the largest market by depth. Markets are ranked by listing count because deeper markets offer more comparable data, more pricing benchmarks, and a more predictable operating environment for investors. Each row also shows revenue, ADR, occupancy, and regulation so investors can evaluate based on what matters most to them.

Which market has the highest Airbnb revenue in Malaysia?

Tengah Island, Kedah posts the highest average monthly revenue in this ranking at $1,661. Revenue leaders often combine healthy rates, solid occupancy, and enough listing scale to support repeatable operations rather than one-off outliers.

Which market has the strongest Airbnb occupancy in Malaysia?

Kampung Padang Gaong, Kedah has the highest occupancy rate in this comparison at 39.5%. High occupancy can signal resilient demand, but investors still need to balance it against nightly rates, regulation, and supply depth before deciding where to buy or operate.

Which market has the highest Airbnb nightly rate in Malaysia?

Pulau Sebang, Malacca commands the highest average daily rate at $201 per night. A high ADR does not automatically translate to the highest revenue — occupancy and seasonality determine how much of that rate converts to realized income.

Which Airbnb markets in Malaysia have the lowest regulation?

Kuala Lumpur (Wilayah Persekutuan Kuala Lumpur), Johor Bahru (Johor), George Town (Penang) currently show low regulation profiles in this ranking. Lower regulation can reduce compliance costs and time-to-market for new hosts, but investors should always verify local ordinances before purchasing — rules can change quickly as short-term rental markets grow.

Is short-term rental investing still profitable in Malaysia in 2026?

The markets ranked here average 23.0% occupancy, and the top performer posts $1,661 in monthly revenue. Profitability depends on property acquisition cost, local operating expenses, and regulation compliance — but the data shows active, performing markets exist across Malaysia for well-researched investors.

How often are AirROI's top Airbnb market rankings updated?

AirROI updates these rankings using the latest market snapshot available in the dataset, which for this page is anchored to 2026. Rankings should be treated as current market intelligence rather than permanent truths because pricing, demand, regulation, and supply can all shift over time.

What metrics should I use to evaluate Airbnb investments in Malaysia?

The most important metrics for comparing short-term rental markets are active listing count (market depth and data reliability), occupancy rate (demand consistency), average daily rate (pricing power), monthly revenue (income potential), and regulation level (compliance cost and risk). This ranking sorts by market depth first; use the other columns to filter for the profile that fits your investment strategy.

What makes a good Airbnb market for first-time investors in Malaysia?

First-time investors in Malaysia should prioritize markets with high occupancy (55%+) and low regulation, which reduce the risk of empty calendars and compliance surprises. Markets with 200+ active listings also provide better benchmarking data and a more predictable operating environment. Revenue is important, but consistent demand is more forgiving for operators still learning pricing and guest management.

What is a good Airbnb occupancy rate in Malaysia?

Across the markets ranked here, the average occupancy rate in Malaysia is 23.0%. Occupancy above 50% is generally considered healthy for short-term rentals, and above 65% signals strong, sustained demand. However, the best occupancy rate depends on pricing strategy — some hosts maximize revenue by targeting fewer bookings at higher nightly rates rather than maximizing booking volume.

How does regulation affect Airbnb investment returns in Malaysia?

Regulation is one of the most overlooked risks in short-term rental investing. In Malaysia, 100 of 100 ranked markets have low regulation, 0 have medium, and 0 have high. High-regulation markets often require permits, limit annual rental days, or impose occupancy taxes — all of which reduce net returns. Low-regulation markets offer faster time-to-market and lower compliance costs, but rules can tighten as STR supply grows.

What is the difference between ADR and RevPAR for Airbnb investing?

ADR (Average Daily Rate) is the average nightly price guests pay, while RevPAR (Revenue Per Available Rental night) factors in both price and occupancy. A market with $200 ADR and 50% occupancy has $100 RevPAR — the same as a market with $125 ADR and 80% occupancy. RevPAR is a better single-number benchmark for comparing markets because it captures how effectively nightly rates convert to realized income. AirROI's city-level reports include RevPAR with percentile breakdowns for deeper analysis.

How many Airbnb listings does a market need to be investable in Malaysia?

Markets with fewer than 100 active listings can show volatile averages that do not predict future performance. The median market in this Malaysia ranking has about 113 listings. Larger markets (500+) offer more reliable data, more comparable properties for pricing, and typically a more liquid exit if you decide to sell. Smaller markets can still be profitable, but investors should treat the data as directional rather than precise.

How do seasonal and year-round Airbnb markets differ in Malaysia?

Seasonal markets in Malaysia experience dramatic swings in booking demand — often earning 60-70% of annual revenue in just 3-4 peak months. Year-round markets deliver steadier cash flow with lower peak-to-trough variation. Investors who need predictable monthly income should prioritize high-occupancy markets with low seasonal variance, while those comfortable with cash-flow timing can target seasonal markets where peak rates compensate for off-season softness.

About AirROI Market Data

AirROI tracks over 20 million properties across 190+ countries and maintains 15+ years of historical performance data, making it one of the deepest Airbnb and STR intelligence platforms available. The analytics pipeline aggregates listing-level data monthly — revenue, occupancy, nightly rates, RevPAR, guest demographics, booking patterns, and competitive supply — so investors and operators can benchmark any market against its own history and against neighboring destinations.

Real estate investors, property managers, financial institutions, hospitality consultants, and academic researchers rely on AirROI data to underwrite acquisitions, optimize pricing, model macro trends, and conduct peer-reviewed research. Data is available through in-depth market reports, the data portal for bulk downloads, the Airbnb API with 22 endpoints, and an Airbnb MCP Server for AI agents.

All metrics reflect trailing twelve-month aggregates from active listings as of 2026-05-04. Revenue figures are market averages, not projections. For full methodology, see the data methodology page.

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