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 15,969 active listings and $562/month revenue. Across all ranked markets, average occupancy is 23.3% with $455/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 15,969 active short-term rental listings and $562/month in average revenue.

#MarketActive Listings (TTM)Revenue/moADROccupancyRegulation
1Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur15,969$562$7333.9%Low
2Johor Bahru, Johor4,446$582$8328.5%Low
3George Town, Penang3,678$706$8733.0%Low
4Malacca City, Malacca2,738$518$9421.7%Low
5Petaling Jaya, Selangor2,037$338$5128.7%Low
6Ipoh, Perak1,951$409$7722.7%Low
7Iskandar Puteri, Johor1,922$428$6626.8%Low
8Sepang, Selangor1,658$254$4724.3%Low
9Shah Alam, Selangor1,560$281$5224.8%Low
10Kota Kinabalu, Sabah1,547$604$8330.8%Low
11Kajang Municipal Council, Selangor1,159$370$6525.3%Low
12Kuching, Sarawak1,141$370$5429.2%Low
13Genting Highlands, Pahang1,096$438$12418.1%Low
14Subang Jaya, Selangor881$423$6331.0%Low
15Cameron Highlands, Pahang672$502$8023.7%Low
16Port Dickson, Negeri Sembilan669$486$11217.7%Low
17Kuantan, Pahang607$372$8020.6%Low
18Ampang Jaya Municipal Council, Gombak551$410$7529.3%Low
19Kota Bharu, Kelantan439$231$5520.0%Low
20Bukit Mertajam, Penang409$307$6421.3%Low
21Malacca, Malacca375$565$9824.0%Low
22Kuala Terengganu, Terengganu359$351$7720.6%Low
23Kuah, Kedah313$776$9131.9%Low
24Nilai, Negeri Sembilan263$256$4527.3%Low
25Bandar Penawar, Johor251$524$12618.2%Low
26Subang Jaya City Council, Selangor245$387$5730.5%Low
27Seremban, Negeri Sembilan235$362$9818.0%Low
28Taiping, Perak234$403$8020.0%Low
29Kampung Sungai Karang Darat, Pahang217$341$7818.3%Low
30Selayang Municipal Council, Selangor217$480$10719.6%Low
31Semporna, Sabah215$449$8024.0%Low
32Langkawi, Kedah203$1,077$13032.4%Low
33Tebrau, Johor198$435$6526.2%Low
34Tanjung Aru, Sabah179$570$6331.8%Low
35Ayer Keroh, Malacca172$428$9618.0%Low
36Donggongon, Sabah166$205$5719.5%Low
37Klang City, Klang158$486$8925.1%Low
38Putrajaya, Putrajaya155$551$8527.5%Low
39Pasir Gudang, Johor153$357$7124.8%Low
40Kluang, Johor152$360$8920.5%Low
41Sandakan, Sabah152$311$5824.2%Low
42Cenang Beach, Kedah150$380$8725.9%Low
43Sitiawan, Perak148$214$7416.8%Low
44Kampung Sembulan Lama, Sabah147$426$9325.6%Low
45Sibu, Sarawak139$349$6223.2%Low
46Brinchang, Pahang135$539$7029.9%Low
47Cheras, Selangor135$349$4734.3%Low
48Batu Pahat, Johor127$382$9717.5%Low
49Kulai, Johor120$509$10025.5%Low
50Muar, Johor117$388$9416.5%Low
51Kampar, Perak105$154$4515.8%Low
52Butterworth, Penang101$423$6329.7%Low
53Miri, Sarawak98$312$6221.7%Low
54Bentong, Pahang97$841$17818.1%Low
55Sungai Petani, Kedah96$338$7521.7%Low
56Alor Gajah, Malacca95$703$15318.4%Low
57Alor Setar, Kedah93$374$7621.9%Low
58Banting, Selangor90$186$7714.5%Low
59Pulau Sebang, Malacca89$914$20818.7%Low
60Pangkor Island, Perak89$462$10817.4%Low
61Dungun, Terengganu87$259$6218.6%Low
62Bukit Tinggi, Pahang86$1,272$17421.7%Low
63Teluk Intan, Perak81$284$7717.0%Low
64Tengah Island, Kedah79$1,721$18632.0%Low
65Sekinchan, Sabak Bernam79$491$12816.7%Low
66Tawau, Sabah77$296$6222.6%Low
67Mersing, Johor72$363$7624.3%Low
68Batu Caves, Selangor72$274$4528.1%Low
69Dengkil, Selangor70$184$5115.9%Low
70Lumut, Perak68$140$7115.6%Low
71Kangar, Perlis68$260$5621.4%Low
72Masai, Johor67$348$6524.8%Low
73Paya Mempelam Village, Kedah64$660$8329.5%Low
74Fraser's Hill, Pahang64$436$10917.1%Low
75Cyberjaya, Selangor63$162$3026.7%Low
76Kuala Selangor, Selangor61$358$10314.9%Low
77Tioman, Pahang59$314$6825.2%Low
78Hang Tuah Jaya Municipal Council, Malacca58$542$12717.6%Low
79Seri Iskandar, Perak56$243$9119.9%Low
80Seri Kembangan, Selangor56$289$4331.9%Low
81Chukai, Terengganu54$266$5921.9%Low
82Kuala Muda Village, Kedah52$664$10329.3%Low
83Tanah Rata, Pahang50$460$9125.0%Low
84Plentong, Johor46$452$8422.3%Low
85Kampung Padang Gaong, Kedah46$931$8939.4%Low
86Tanjung Kling, Malacca46$253$8214.0%Low
87Puchong, Selangor44$364$9923.3%Low
88Api-Api Center, Sabah42$509$7127.9%Low
89Kuala Kubu Bharu, Selangor42$858$12920.9%Low
90Balok, Pahang41$530$8521.4%Low
91Bayan Lepas, Penang41$469$5635.4%Low
92Seri Manjung, Perak41$260$7118.1%Low
93Jasin, Malacca40$624$12717.7%Low
94Kampung Masjid Lama, Kedah39$301$6320.8%Low
95Kampung Mesilau, Sabah39$1,306$13229.8%Low
96Kuala Kangsar, Perak33$229$5919.4%Low
97Kampung Siru Melayu, Sarawak33$698$10622.6%Low
98Masjid Tanah, Malacca32$426$10616.8%Low
99Kepala Batas, Pulau Pinang32$304$6918.1%Low
100Jitra, Kedah31$191$5017.9%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 $1,721/month at $186 ADR and 32.0% 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$1,72179$18632.0%Low
2Kampung Mesilau, Sabah$1,30639$13229.8%Low
3Bukit Tinggi, Pahang$1,27286$17421.7%Low
4Langkawi, Kedah$1,077203$13032.4%Low
5Kampung Padang Gaong, Kedah$93146$8939.4%Low
6Pulau Sebang, Malacca$91489$20818.7%Low
7Kuala Kubu Bharu, Selangor$85842$12920.9%Low
8Bentong, Pahang$84197$17818.1%Low
9Kuah, Kedah$776313$9131.9%Low
10George Town, Penang$7063,678$8733.0%Low
11Alor Gajah, Malacca$70395$15318.4%Low
12Kampung Siru Melayu, Sarawak$69833$10622.6%Low
13Kuala Muda Village, Kedah$66452$10329.3%Low
14Paya Mempelam Village, Kedah$66064$8329.5%Low
15Jasin, Malacca$62440$12717.7%Low
16Kota Kinabalu, Sabah$6041,547$8330.8%Low
17Johor Bahru, Johor$5824,446$8328.5%Low
18Tanjung Aru, Sabah$570179$6331.8%Low
19Malacca, Malacca$565375$9824.0%Low
20Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$56215,969$7333.9%Low
21Putrajaya, Putrajaya$551155$8527.5%Low
22Hang Tuah Jaya Municipal Council, Malacca$54258$12717.6%Low
23Brinchang, Pahang$539135$7029.9%Low
24Balok, Pahang$53041$8521.4%Low
25Bandar Penawar, Johor$524251$12618.2%Low
26Malacca City, Malacca$5182,738$9421.7%Low
27Kulai, Johor$509120$10025.5%Low
28Api-Api Center, Sabah$50942$7127.9%Low
29Cameron Highlands, Pahang$502672$8023.7%Low
30Sekinchan, Sabak Bernam$49179$12816.7%Low
31Port Dickson, Negeri Sembilan$486669$11217.7%Low
32Klang City, Klang$486158$8925.1%Low
33Selayang Municipal Council, Selangor$480217$10719.6%Low
34Bayan Lepas, Penang$46941$5635.4%Low
35Pangkor Island, Perak$46289$10817.4%Low
36Tanah Rata, Pahang$46050$9125.0%Low
37Plentong, Johor$45246$8422.3%Low
38Semporna, Sabah$449215$8024.0%Low
39Genting Highlands, Pahang$4381,096$12418.1%Low
40Fraser's Hill, Pahang$43664$10917.1%Low
41Tebrau, Johor$435198$6526.2%Low
42Iskandar Puteri, Johor$4281,922$6626.8%Low
43Ayer Keroh, Malacca$428172$9618.0%Low
44Kampung Sembulan Lama, Sabah$426147$9325.6%Low
45Masjid Tanah, Malacca$42632$10616.8%Low
46Butterworth, Penang$423101$6329.7%Low
47Subang Jaya, Selangor$423881$6331.0%Low
48Ampang Jaya Municipal Council, Gombak$410551$7529.3%Low
49Ipoh, Perak$4091,951$7722.7%Low
50Taiping, Perak$403234$8020.0%Low
51Muar, Johor$388117$9416.5%Low
52Subang Jaya City Council, Selangor$387245$5730.5%Low
53Batu Pahat, Johor$382127$9717.5%Low
54Cenang Beach, Kedah$380150$8725.9%Low
55Alor Setar, Kedah$37493$7621.9%Low
56Kuantan, Pahang$372607$8020.6%Low
57Kajang Municipal Council, Selangor$3701,159$6525.3%Low
58Kuching, Sarawak$3701,141$5429.2%Low
59Puchong, Selangor$36444$9923.3%Low
60Mersing, Johor$36372$7624.3%Low
61Seremban, Negeri Sembilan$362235$9818.0%Low
62Kluang, Johor$360152$8920.5%Low
63Kuala Selangor, Selangor$35861$10314.9%Low
64Pasir Gudang, Johor$357153$7124.8%Low
65Kuala Terengganu, Terengganu$351359$7720.6%Low
66Cheras, Selangor$349135$4734.3%Low
67Sibu, Sarawak$349139$6223.2%Low
68Masai, Johor$34867$6524.8%Low
69Kampung Sungai Karang Darat, Pahang$341217$7818.3%Low
70Sungai Petani, Kedah$33896$7521.7%Low
71Petaling Jaya, Selangor$3382,037$5128.7%Low
72Tioman, Pahang$31459$6825.2%Low
73Miri, Sarawak$31298$6221.7%Low
74Sandakan, Sabah$311152$5824.2%Low
75Bukit Mertajam, Penang$307409$6421.3%Low
76Kepala Batas, Pulau Pinang$30432$6918.1%Low
77Kampung Masjid Lama, Kedah$30139$6320.8%Low
78Tawau, Sabah$29677$6222.6%Low
79Seri Kembangan, Selangor$28956$4331.9%Low
80Teluk Intan, Perak$28481$7717.0%Low
81Shah Alam, Selangor$2811,560$5224.8%Low
82Batu Caves, Selangor$27472$4528.1%Low
83Chukai, Terengganu$26654$5921.9%Low
84Seri Manjung, Perak$26041$7118.1%Low
85Kangar, Perlis$26068$5621.4%Low
86Dungun, Terengganu$25987$6218.6%Low
87Nilai, Negeri Sembilan$256263$4527.3%Low
88Sepang, Selangor$2541,658$4724.3%Low
89Tanjung Kling, Malacca$25346$8214.0%Low
90Seri Iskandar, Perak$24356$9119.9%Low
91Kota Bharu, Kelantan$231439$5520.0%Low
92Kuala Kangsar, Perak$22933$5919.4%Low
93Sitiawan, Perak$214148$7416.8%Low
94Donggongon, Sabah$205166$5719.5%Low
95Jitra, Kedah$19131$5017.9%Low
96Banting, Selangor$18690$7714.5%Low
97Dengkil, Selangor$18470$5115.9%Low
98Cyberjaya, Selangor$16263$3026.7%Low
99Kampar, Perak$154105$4515.8%Low
100Lumut, Perak$14068$7115.6%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 $208/night, generating $914/month at 18.7% 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$20889$91418.7%Low
2Tengah Island, Kedah$18679$1,72132.0%Low
3Bentong, Pahang$17897$84118.1%Low
4Bukit Tinggi, Pahang$17486$1,27221.7%Low
5Alor Gajah, Malacca$15395$70318.4%Low
6Kampung Mesilau, Sabah$13239$1,30629.8%Low
7Langkawi, Kedah$130203$1,07732.4%Low
8Kuala Kubu Bharu, Selangor$12942$85820.9%Low
9Sekinchan, Sabak Bernam$12879$49116.7%Low
10Jasin, Malacca$12740$62417.7%Low
11Hang Tuah Jaya Municipal Council, Malacca$12758$54217.6%Low
12Bandar Penawar, Johor$126251$52418.2%Low
13Genting Highlands, Pahang$1241,096$43818.1%Low
14Port Dickson, Negeri Sembilan$112669$48617.7%Low
15Fraser's Hill, Pahang$10964$43617.1%Low
16Pangkor Island, Perak$10889$46217.4%Low
17Selayang Municipal Council, Selangor$107217$48019.6%Low
18Masjid Tanah, Malacca$10632$42616.8%Low
19Kampung Siru Melayu, Sarawak$10633$69822.6%Low
20Kuala Selangor, Selangor$10361$35814.9%Low
21Kuala Muda Village, Kedah$10352$66429.3%Low
22Kulai, Johor$100120$50925.5%Low
23Puchong, Selangor$9944$36423.3%Low
24Seremban, Negeri Sembilan$98235$36218.0%Low
25Malacca, Malacca$98375$56524.0%Low
26Batu Pahat, Johor$97127$38217.5%Low
27Ayer Keroh, Malacca$96172$42818.0%Low
28Malacca City, Malacca$942,738$51821.7%Low
29Muar, Johor$94117$38816.5%Low
30Kampung Sembulan Lama, Sabah$93147$42625.6%Low
31Kuah, Kedah$91313$77631.9%Low
32Tanah Rata, Pahang$9150$46025.0%Low
33Seri Iskandar, Perak$9156$24319.9%Low
34Kampung Padang Gaong, Kedah$8946$93139.4%Low
35Klang City, Klang$89158$48625.1%Low
36Kluang, Johor$89152$36020.5%Low
37Cenang Beach, Kedah$87150$38025.9%Low
38George Town, Penang$873,678$70633.0%Low
39Putrajaya, Putrajaya$85155$55127.5%Low
40Balok, Pahang$8541$53021.4%Low
41Plentong, Johor$8446$45222.3%Low
42Johor Bahru, Johor$834,446$58228.5%Low
43Kota Kinabalu, Sabah$831,547$60430.8%Low
44Paya Mempelam Village, Kedah$8364$66029.5%Low
45Tanjung Kling, Malacca$8246$25314.0%Low
46Cameron Highlands, Pahang$80672$50223.7%Low
47Kuantan, Pahang$80607$37220.6%Low
48Taiping, Perak$80234$40320.0%Low
49Semporna, Sabah$80215$44924.0%Low
50Kampung Sungai Karang Darat, Pahang$78217$34118.3%Low
51Kuala Terengganu, Terengganu$77359$35120.6%Low
52Ipoh, Perak$771,951$40922.7%Low
53Banting, Selangor$7790$18614.5%Low
54Teluk Intan, Perak$7781$28417.0%Low
55Alor Setar, Kedah$7693$37421.9%Low
56Mersing, Johor$7672$36324.3%Low
57Ampang Jaya Municipal Council, Gombak$75551$41029.3%Low
58Sungai Petani, Kedah$7596$33821.7%Low
59Sitiawan, Perak$74148$21416.8%Low
60Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$7315,969$56233.9%Low
61Lumut, Perak$7168$14015.6%Low
62Pasir Gudang, Johor$71153$35724.8%Low
63Api-Api Center, Sabah$7142$50927.9%Low
64Seri Manjung, Perak$7141$26018.1%Low
65Brinchang, Pahang$70135$53929.9%Low
66Kepala Batas, Pulau Pinang$6932$30418.1%Low
67Tioman, Pahang$6859$31425.2%Low
68Iskandar Puteri, Johor$661,922$42826.8%Low
69Masai, Johor$6567$34824.8%Low
70Tebrau, Johor$65198$43526.2%Low
71Kajang Municipal Council, Selangor$651,159$37025.3%Low
72Bukit Mertajam, Penang$64409$30721.3%Low
73Kampung Masjid Lama, Kedah$6339$30120.8%Low
74Tanjung Aru, Sabah$63179$57031.8%Low
75Butterworth, Penang$63101$42329.7%Low
76Subang Jaya, Selangor$63881$42331.0%Low
77Dungun, Terengganu$6287$25918.6%Low
78Sibu, Sarawak$62139$34923.2%Low
79Tawau, Sabah$6277$29622.6%Low
80Miri, Sarawak$6298$31221.7%Low
81Kuala Kangsar, Perak$5933$22919.4%Low
82Chukai, Terengganu$5954$26621.9%Low
83Sandakan, Sabah$58152$31124.2%Low
84Donggongon, Sabah$57166$20519.5%Low
85Subang Jaya City Council, Selangor$57245$38730.5%Low
86Bayan Lepas, Penang$5641$46935.4%Low
87Kangar, Perlis$5668$26021.4%Low
88Kota Bharu, Kelantan$55439$23120.0%Low
89Kuching, Sarawak$541,141$37029.2%Low
90Shah Alam, Selangor$521,560$28124.8%Low
91Petaling Jaya, Selangor$512,037$33828.7%Low
92Dengkil, Selangor$5170$18415.9%Low
93Jitra, Kedah$5031$19117.9%Low
94Sepang, Selangor$471,658$25424.3%Low
95Cheras, Selangor$47135$34934.3%Low
96Batu Caves, Selangor$4572$27428.1%Low
97Nilai, Negeri Sembilan$45263$25627.3%Low
98Kampar, Perak$45105$15415.8%Low
99Seri Kembangan, Selangor$4356$28931.9%Low
100Cyberjaya, Selangor$3063$16226.7%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 33.9% occupancy, $562/month revenue, and 15,969 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 Lumpur33.9%15,969$562$73Low
2George Town, Penang33.0%3,678$706$87Low
3Kuah, Kedah31.9%313$776$91Low
4Subang Jaya, Selangor31.0%881$423$63Low
5Kota Kinabalu, Sabah30.8%1,547$604$83Low
6Ampang Jaya Municipal Council, Gombak29.3%551$410$75Low
7Kuching, Sarawak29.2%1,141$370$54Low
8Petaling Jaya, Selangor28.7%2,037$338$51Low
9Johor Bahru, Johor28.5%4,446$582$83Low
10Iskandar Puteri, Johor26.8%1,922$428$66Low
11Kajang Municipal Council, Selangor25.3%1,159$370$65Low
12Shah Alam, Selangor24.8%1,560$281$52Low
13Sepang, Selangor24.3%1,658$254$47Low
14Malacca, Malacca24.0%375$565$98Low
15Cameron Highlands, Pahang23.7%672$502$80Low
16Ipoh, Perak22.7%1,951$409$77Low
17Malacca City, Malacca21.7%2,738$518$94Low
18Bukit Mertajam, Penang21.3%409$307$64Low
19Kuantan, Pahang20.6%607$372$80Low
20Kuala Terengganu, Terengganu20.6%359$351$77Low
21Kota Bharu, Kelantan20.0%439$231$55Low
22Genting Highlands, Pahang18.1%1,096$438$124Low
23Port Dickson, Negeri Sembilan17.7%669$486$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 15,969 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 $1,721. 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 39.4%. 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 $208 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 23.3% occupancy, and the top performer posts $1,721 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 23.3%. 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 117 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 2026-04-08. Revenue figures are market averages, not projections. For full methodology, see the data methodology page.

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