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 18,846 active listings and $531/month revenue. Across all ranked markets, average occupancy is 23.5% with $405/month in average revenue and $86/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 18,846 active short-term rental listings and $531/month in average revenue.

#MarketActive Listings (TTM)Revenue/moADROccupancyRegulation
1Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur18,846$531$7733.5%Low
2Johor Bahru, Johor5,244$529$8628.0%Low
3George Town, Penang4,050$658$8932.4%Low
4Malacca City, Malacca2,536$514$10120.8%Low
5Petaling Jaya, Selangor2,297$319$5329.0%Low
6Ipoh, Perak2,138$402$8122.8%Low
7Iskandar Puteri, Johor1,973$419$6827.2%Low
8Kota Kinabalu, Sabah1,935$498$8129.3%Low
9Shah Alam, Selangor1,800$260$5724.7%Low
10Sepang, Selangor1,703$245$4924.0%Low
11Kuching, Sarawak1,355$337$5928.1%Low
12Genting Highlands, Pahang1,234$467$15218.1%Low
13Kajang Municipal Council, Selangor1,076$378$6824.6%Low
14Subang Jaya, Selangor934$408$6530.8%Low
15Malacca, Malacca911$469$10023.1%Low
16Port Dickson, Negeri Sembilan779$464$11717.9%Low
17Kuantan, Pahang773$328$8120.1%Low
18Cameron Highlands, Pahang652$496$8523.2%Low
19Kota Bharu, Kelantan541$208$5919.6%Low
20Kuala Terengganu, Terengganu539$302$7820.5%Low
21Ampang Jaya Municipal Council, Gombak492$395$7929.6%Low
22Bukit Mertajam, Penang443$279$6621.5%Low
23Nilai, Negeri Sembilan371$222$4926.3%Low
24Langkawi, Kedah333$874$12532.0%Low
25Bandar Penawar, Johor303$485$12218.5%Low
26Kuah, Kedah294$758$10929.7%Low
27Seremban, Negeri Sembilan291$348$9718.9%Low
28Taiping, Perak269$369$8119.7%Low
29Brinchang, Pahang255$470$7429.2%Low
30Semporna, Sabah250$367$8023.1%Low
31Cheras, Wilayah Persekutuan Kuala Lumpur239$290$4931.2%Low
32Kampung Sungai Karang Darat, Pahang215$321$8018.1%Low
33Subang Jaya City Council, Selangor215$370$6129.8%Low
34Putrajaya, Putrajaya207$530$8629.3%Low
35Selayang Municipal Council, Selangor206$467$10819.5%Low
36Donggongon, Sabah200$174$5719.4%Low
37Cyberjaya, Selangor199$161$4127.3%Low
38Kluang, Johor188$335$9020.2%Low
39Sandakan, Sabah183$277$6223.0%Low
40Tebrau, Johor179$438$6924.5%Low
41Tanjung Aru, Sabah177$544$6629.7%Low
42Kajang, Selangor175$248$6923.2%Low
43Ayer Keroh, Malacca174$398$10117.9%Low
44Batu Pahat, Johor173$344$9819.0%Low
45Alor Setar, Kedah169$309$7822.8%Low
46Sungai Petani, Kedah165$288$7321.3%Low
47Sitiawan, Perak156$227$7817.2%Low
48Sibu, Sarawak153$362$6823.7%Low
49Muar, Johor152$348$9617.0%Low
50Pasir Gudang, Johor149$341$8024.0%Low
51Klang City, Klang145$476$9424.7%Low
52Dengkil, Selangor144$153$4919.5%Low
53Seri Kembangan, Selangor143$216$4331.4%Low
54Alor Gajah, Malacca140$684$16818.3%Low
55Batu Caves, Selangor140$245$5127.2%Low
56Kampung Sembulan Lama, Sabah139$397$10224.3%Low
57Cenang Beach, Kedah136$338$9024.2%Low
58Kulai, Johor134$516$11624.0%Low
59Masai, Johor128$343$7224.5%Low
60Miri, Sarawak128$281$6422.4%Low
61Tanah Rata, Pahang127$342$8725.5%Low
62Bayan Lepas, Penang119$382$7131.9%Low
63Pangkor Island, Perak115$381$10716.2%Low
64Banting, Selangor115$190$7417.3%Low
65Kampar, Perak113$155$5016.0%Low
66Butterworth, Penang111$418$7429.4%Low
67Sekinchan, Sabak Bernam110$410$11717.0%Low
68Bentong, Pahang108$926$21818.4%Low
69Kangar, Perlis106$222$6022.2%Low
70Puchong, Selangor106$338$9525.5%Low
71Teluk Intan, Perak104$244$7716.7%Low
72Mersing, Johor94$370$8023.7%Low
73Lumut, Perak89$169$7915.2%Low
74Tawau, Sabah88$258$6621.2%Low
75Pulau Sebang, Malacca87$883$21518.4%Low
76Balok, Pahang86$383$8521.4%Low
77Dungun, Terengganu82$258$7217.9%Low
78Seri Iskandar, Perak79$182$7918.4%Low
79Bukit Tinggi, Pahang78$1,463$19222.0%Low
80Tengah Island, Kedah72$1,795$20732.1%Low
81Fraser's Hill, Pahang69$408$11117.0%Low
82Kuala Selangor, Selangor65$330$11314.0%Low
83Tioman, Pahang59$308$7025.2%Low
84Paya Mempelam Village, Kedah57$688$9027.2%Low
85Tanjung Bungah, Pulau Pinang56$405$6830.9%Low
86Jitra, Kedah55$187$5917.9%Low
87Kundasang, Sabah54$956$13231.3%Low
88Hang Tuah Jaya Municipal Council, Malacca53$510$13117.7%Low
89Bandar Baru Bangi, Selangor53$190$6424.1%Low
90Ampang, Selangor52$211$4234.1%Low
91Semenyih, Selangor52$116$3720.8%Low
92Chukai, Terengganu52$262$6221.5%Low
93Air Itam, Penang51$214$10424.9%Low
94Gelang Patah, Johor49$209$7023.7%Low
95Temerloh, Pahang48$194$6117.0%Low
96Ampang Jaya, Selangor48$324$5635.0%Low
97Seri Manjung, Perak47$225$7317.7%Low
98Rawang, Selangor47$355$10220.3%Low
99Kampung Padang Gaong, Kedah46$902$9240.6%Low
100Jasin, Malacca45$511$12617.1%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 $1,795/month at $207 ADR and 32.1% 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$1,79572$20732.1%Low
2Bukit Tinggi, Pahang$1,46378$19222.0%Low
3Kundasang, Sabah$95654$13231.3%Low
4Bentong, Pahang$926108$21818.4%Low
5Kampung Padang Gaong, Kedah$90246$9240.6%Low
6Pulau Sebang, Malacca$88387$21518.4%Low
7Langkawi, Kedah$874333$12532.0%Low
8Kuah, Kedah$758294$10929.7%Low
9Paya Mempelam Village, Kedah$68857$9027.2%Low
10Alor Gajah, Malacca$684140$16818.3%Low
11George Town, Penang$6584,050$8932.4%Low
12Tanjung Aru, Sabah$544177$6629.7%Low
13Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$53118,846$7733.5%Low
14Putrajaya, Putrajaya$530207$8629.3%Low
15Johor Bahru, Johor$5295,244$8628.0%Low
16Kulai, Johor$516134$11624.0%Low
17Malacca City, Malacca$5142,536$10120.8%Low
18Jasin, Malacca$51145$12617.1%Low
19Hang Tuah Jaya Municipal Council, Malacca$51053$13117.7%Low
20Kota Kinabalu, Sabah$4981,935$8129.3%Low
21Cameron Highlands, Pahang$496652$8523.2%Low
22Bandar Penawar, Johor$485303$12218.5%Low
23Klang City, Klang$476145$9424.7%Low
24Brinchang, Pahang$470255$7429.2%Low
25Malacca, Malacca$469911$10023.1%Low
26Genting Highlands, Pahang$4671,234$15218.1%Low
27Selayang Municipal Council, Selangor$467206$10819.5%Low
28Port Dickson, Negeri Sembilan$464779$11717.9%Low
29Tebrau, Johor$438179$6924.5%Low
30Iskandar Puteri, Johor$4191,973$6827.2%Low
31Butterworth, Penang$418111$7429.4%Low
32Sekinchan, Sabak Bernam$410110$11717.0%Low
33Fraser's Hill, Pahang$40869$11117.0%Low
34Subang Jaya, Selangor$408934$6530.8%Low
35Tanjung Bungah, Pulau Pinang$40556$6830.9%Low
36Ipoh, Perak$4022,138$8122.8%Low
37Ayer Keroh, Malacca$398174$10117.9%Low
38Kampung Sembulan Lama, Sabah$397139$10224.3%Low
39Ampang Jaya Municipal Council, Gombak$395492$7929.6%Low
40Balok, Pahang$38386$8521.4%Low
41Bayan Lepas, Penang$382119$7131.9%Low
42Pangkor Island, Perak$381115$10716.2%Low
43Kajang Municipal Council, Selangor$3781,076$6824.6%Low
44Subang Jaya City Council, Selangor$370215$6129.8%Low
45Mersing, Johor$37094$8023.7%Low
46Taiping, Perak$369269$8119.7%Low
47Semporna, Sabah$367250$8023.1%Low
48Sibu, Sarawak$362153$6823.7%Low
49Rawang, Selangor$35547$10220.3%Low
50Seremban, Negeri Sembilan$348291$9718.9%Low
51Muar, Johor$348152$9617.0%Low
52Batu Pahat, Johor$344173$9819.0%Low
53Masai, Johor$343128$7224.5%Low
54Tanah Rata, Pahang$342127$8725.5%Low
55Pasir Gudang, Johor$341149$8024.0%Low
56Cenang Beach, Kedah$338136$9024.2%Low
57Puchong, Selangor$338106$9525.5%Low
58Kuching, Sarawak$3371,355$5928.1%Low
59Kluang, Johor$335188$9020.2%Low
60Kuala Selangor, Selangor$33065$11314.0%Low
61Kuantan, Pahang$328773$8120.1%Low
62Ampang Jaya, Selangor$32448$5635.0%Low
63Kampung Sungai Karang Darat, Pahang$321215$8018.1%Low
64Petaling Jaya, Selangor$3192,297$5329.0%Low
65Alor Setar, Kedah$309169$7822.8%Low
66Tioman, Pahang$30859$7025.2%Low
67Kuala Terengganu, Terengganu$302539$7820.5%Low
68Cheras, Wilayah Persekutuan Kuala Lumpur$290239$4931.2%Low
69Sungai Petani, Kedah$288165$7321.3%Low
70Miri, Sarawak$281128$6422.4%Low
71Bukit Mertajam, Penang$279443$6621.5%Low
72Sandakan, Sabah$277183$6223.0%Low
73Chukai, Terengganu$26252$6221.5%Low
74Shah Alam, Selangor$2601,800$5724.7%Low
75Tawau, Sabah$25888$6621.2%Low
76Dungun, Terengganu$25882$7217.9%Low
77Kajang, Selangor$248175$6923.2%Low
78Sepang, Selangor$2451,703$4924.0%Low
79Batu Caves, Selangor$245140$5127.2%Low
80Teluk Intan, Perak$244104$7716.7%Low
81Sitiawan, Perak$227156$7817.2%Low
82Seri Manjung, Perak$22547$7317.7%Low
83Nilai, Negeri Sembilan$222371$4926.3%Low
84Kangar, Perlis$222106$6022.2%Low
85Seri Kembangan, Selangor$216143$4331.4%Low
86Air Itam, Penang$21451$10424.9%Low
87Ampang, Selangor$21152$4234.1%Low
88Gelang Patah, Johor$20949$7023.7%Low
89Kota Bharu, Kelantan$208541$5919.6%Low
90Temerloh, Pahang$19448$6117.0%Low
91Bandar Baru Bangi, Selangor$19053$6424.1%Low
92Banting, Selangor$190115$7417.3%Low
93Jitra, Kedah$18755$5917.9%Low
94Seri Iskandar, Perak$18279$7918.4%Low
95Donggongon, Sabah$174200$5719.4%Low
96Lumut, Perak$16989$7915.2%Low
97Cyberjaya, Selangor$161199$4127.3%Low
98Kampar, Perak$155113$5016.0%Low
99Dengkil, Selangor$153144$4919.5%Low
100Semenyih, Selangor$11652$3720.8%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. Bentong, Pahang commands the highest Airbnb nightly rate in Malaysia at $218/night, generating $926/month at 18.4% 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
1Bentong, Pahang$218108$92618.4%Low
2Pulau Sebang, Malacca$21587$88318.4%Low
3Tengah Island, Kedah$20772$1,79532.1%Low
4Bukit Tinggi, Pahang$19278$1,46322.0%Low
5Alor Gajah, Malacca$168140$68418.3%Low
6Genting Highlands, Pahang$1521,234$46718.1%Low
7Kundasang, Sabah$13254$95631.3%Low
8Hang Tuah Jaya Municipal Council, Malacca$13153$51017.7%Low
9Jasin, Malacca$12645$51117.1%Low
10Langkawi, Kedah$125333$87432.0%Low
11Bandar Penawar, Johor$122303$48518.5%Low
12Sekinchan, Sabak Bernam$117110$41017.0%Low
13Port Dickson, Negeri Sembilan$117779$46417.9%Low
14Kulai, Johor$116134$51624.0%Low
15Kuala Selangor, Selangor$11365$33014.0%Low
16Fraser's Hill, Pahang$11169$40817.0%Low
17Kuah, Kedah$109294$75829.7%Low
18Selayang Municipal Council, Selangor$108206$46719.5%Low
19Pangkor Island, Perak$107115$38116.2%Low
20Air Itam, Penang$10451$21424.9%Low
21Kampung Sembulan Lama, Sabah$102139$39724.3%Low
22Rawang, Selangor$10247$35520.3%Low
23Ayer Keroh, Malacca$101174$39817.9%Low
24Malacca City, Malacca$1012,536$51420.8%Low
25Malacca, Malacca$100911$46923.1%Low
26Batu Pahat, Johor$98173$34419.0%Low
27Seremban, Negeri Sembilan$97291$34818.9%Low
28Muar, Johor$96152$34817.0%Low
29Puchong, Selangor$95106$33825.5%Low
30Klang City, Klang$94145$47624.7%Low
31Kampung Padang Gaong, Kedah$9246$90240.6%Low
32Paya Mempelam Village, Kedah$9057$68827.2%Low
33Cenang Beach, Kedah$90136$33824.2%Low
34Kluang, Johor$90188$33520.2%Low
35George Town, Penang$894,050$65832.4%Low
36Tanah Rata, Pahang$87127$34225.5%Low
37Johor Bahru, Johor$865,244$52928.0%Low
38Putrajaya, Putrajaya$86207$53029.3%Low
39Balok, Pahang$8586$38321.4%Low
40Cameron Highlands, Pahang$85652$49623.2%Low
41Ipoh, Perak$812,138$40222.8%Low
42Kota Kinabalu, Sabah$811,935$49829.3%Low
43Taiping, Perak$81269$36919.7%Low
44Kuantan, Pahang$81773$32820.1%Low
45Semporna, Sabah$80250$36723.1%Low
46Pasir Gudang, Johor$80149$34124.0%Low
47Kampung Sungai Karang Darat, Pahang$80215$32118.1%Low
48Mersing, Johor$8094$37023.7%Low
49Seri Iskandar, Perak$7979$18218.4%Low
50Ampang Jaya Municipal Council, Gombak$79492$39529.6%Low
51Lumut, Perak$7989$16915.2%Low
52Kuala Terengganu, Terengganu$78539$30220.5%Low
53Sitiawan, Perak$78156$22717.2%Low
54Alor Setar, Kedah$78169$30922.8%Low
55Teluk Intan, Perak$77104$24416.7%Low
56Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur$7718,846$53133.5%Low
57Banting, Selangor$74115$19017.3%Low
58Brinchang, Pahang$74255$47029.2%Low
59Butterworth, Penang$74111$41829.4%Low
60Sungai Petani, Kedah$73165$28821.3%Low
61Seri Manjung, Perak$7347$22517.7%Low
62Masai, Johor$72128$34324.5%Low
63Dungun, Terengganu$7282$25817.9%Low
64Bayan Lepas, Penang$71119$38231.9%Low
65Gelang Patah, Johor$7049$20923.7%Low
66Tioman, Pahang$7059$30825.2%Low
67Tebrau, Johor$69179$43824.5%Low
68Kajang, Selangor$69175$24823.2%Low
69Kajang Municipal Council, Selangor$681,076$37824.6%Low
70Iskandar Puteri, Johor$681,973$41927.2%Low
71Tanjung Bungah, Pulau Pinang$6856$40530.9%Low
72Sibu, Sarawak$68153$36223.7%Low
73Tanjung Aru, Sabah$66177$54429.7%Low
74Tawau, Sabah$6688$25821.2%Low
75Bukit Mertajam, Penang$66443$27921.5%Low
76Subang Jaya, Selangor$65934$40830.8%Low
77Miri, Sarawak$64128$28122.4%Low
78Bandar Baru Bangi, Selangor$6453$19024.1%Low
79Sandakan, Sabah$62183$27723.0%Low
80Chukai, Terengganu$6252$26221.5%Low
81Temerloh, Pahang$6148$19417.0%Low
82Subang Jaya City Council, Selangor$61215$37029.8%Low
83Kangar, Perlis$60106$22222.2%Low
84Jitra, Kedah$5955$18717.9%Low
85Kota Bharu, Kelantan$59541$20819.6%Low
86Kuching, Sarawak$591,355$33728.1%Low
87Shah Alam, Selangor$571,800$26024.7%Low
88Donggongon, Sabah$57200$17419.4%Low
89Ampang Jaya, Selangor$5648$32435.0%Low
90Petaling Jaya, Selangor$532,297$31929.0%Low
91Batu Caves, Selangor$51140$24527.2%Low
92Kampar, Perak$50113$15516.0%Low
93Nilai, Negeri Sembilan$49371$22226.3%Low
94Dengkil, Selangor$49144$15319.5%Low
95Cheras, Wilayah Persekutuan Kuala Lumpur$49239$29031.2%Low
96Sepang, Selangor$491,703$24524.0%Low
97Seri Kembangan, Selangor$43143$21631.4%Low
98Ampang, Selangor$4252$21134.1%Low
99Cyberjaya, Selangor$41199$16127.3%Low
100Semenyih, Selangor$3752$11620.8%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 33.5% occupancy, $531/month revenue, and 18,846 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 Lumpur33.5%18,846$531$77Low
2George Town, Penang32.4%4,050$658$89Low
3Langkawi, Kedah32.0%333$874$125Low
4Subang Jaya, Selangor30.8%934$408$65Low
5Ampang Jaya Municipal Council, Gombak29.6%492$395$79Low
6Kota Kinabalu, Sabah29.3%1,935$498$81Low
7Petaling Jaya, Selangor29.0%2,297$319$53Low
8Kuching, Sarawak28.1%1,355$337$59Low
9Johor Bahru, Johor28.0%5,244$529$86Low
10Iskandar Puteri, Johor27.2%1,973$419$68Low
11Nilai, Negeri Sembilan26.3%371$222$49Low
12Shah Alam, Selangor24.7%1,800$260$57Low
13Kajang Municipal Council, Selangor24.6%1,076$378$68Low
14Sepang, Selangor24.0%1,703$245$49Low
15Cameron Highlands, Pahang23.2%652$496$85Low
16Malacca, Malacca23.1%911$469$100Low
17Ipoh, Perak22.8%2,138$402$81Low
18Bukit Mertajam, Penang21.5%443$279$66Low
19Malacca City, Malacca20.8%2,536$514$101Low
20Kuala Terengganu, Terengganu20.5%539$302$78Low
21Kuantan, Pahang20.1%773$328$81Low
22Kota Bharu, Kelantan19.6%541$208$59Low
23Bandar Penawar, Johor18.5%303$485$122Low
24Genting Highlands, Pahang18.1%1,234$467$152Low
25Port Dickson, Negeri Sembilan17.9%779$464$117Low

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 18,846 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 $1,795. 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 40.6%. 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?

Bentong, Pahang commands the highest average daily rate at $218 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 23.5% occupancy, and the top performer posts $1,795 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 23.5%. 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 149 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 2026-07-06. Revenue figures are market averages, not projections. For full methodology, see the data methodology page.

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