Short answer: Is Airbnb profitable in Johor Bahru? Usually it pays its own bills, but a typical unit does not also pay a loan instalment. In our RM450,000 example, a median listing leaves the owner about RM1,094 short every month. Covering the instalment takes roughly 50% occupancy at RM275 a night.
We manage more than 100 homestay units in Johor Bahru and Desaru, so we earn when people do this. That is why you should see the unflattering sums from us first. Most pages that answer this question stop at gross revenue. Gross revenue does not pay a bank. This article adds the costs and the instalment, then shows what a unit must achieve to make sense. Every calculation is an example, not a quote and not a promise.
How much does an Airbnb in Johor Bahru actually make?
AirROI's Johor Bahru page, updated on 5 November 2026 and covering the 12 months to October 2026, gives the widest picture we could find:
| AirROI, Johor Bahru | Bottom quarter | Median | Top quarter | Top tenth |
|---|---|---|---|---|
| Occupancy | 13% or less | about 27% | 46% or more | 65% or more |
| Nightly rate | RM190 or less | RM275 | RM415 or more | RM655 or more |
| Monthly revenue | RM1,110 or less | RM2,420 | RM4,530 or more | RM7,660 or more |
Two more lines from the same page matter. Active listings rose 33% in a year to 5,314, while average revenue per listing rose only 0.8% to RM29,717. A third more listings shared nearly the same income per listing. Airbtics reports a higher median of about RM44,000 a year at 45% occupancy, and our occupancy article explains why the two disagree. All of these figures are estimates from public calendars and all are before costs.
What does the example condo cost to buy and carry?
Here is the example we will test. Replace every number with your own.
| Example item | Figure | Notes |
|---|---|---|
| Purchase price | RM450,000 | Example only |
| Loan at 90% | RM405,000 | 35 years at an example 4.2% |
| Monthly instalment | RM1,842 | About RM1,418 interest and RM425 principal in month one |
| Down payment | RM45,000 | |
| Stamp duty on the transfer | RM8,000 | Standard scale, before any exemption |
| Stamp duty on the loan | RM2,025 | 0.5% of the loan |
| Furnishing and starting costs | RM35,540 | From the budget in our how to start guide |
| Cash in before legal fees | about RM90,565 | Legal and valuation fees are extra |
Bank Negara held the Overnight Policy Rate at 2.75% on 5 November 2026, but your rate comes from your bank, so ask for a real offer. Also ask about your loan count. A 70% cap on third housing loans was set in 2010 and guides still list it. We could not find a 2026 Bank Negara document confirming it, so check with the bank. At 70% the down payment is far larger.
What does each booked night leave the owner?
We use the same example costs as our occupancy and pricing articles: 15% platform commission, RM70 cleaning per two-night stay, RM12 of electricity and water per booked night, and RM560 a month of fixed costs such as maintenance fee, assessment, insurance and internet. We apply the 90% of gross plan from /ownerenquiry, as an example and not a quote.
| Nightly rate (example) | Owner keeps per booked night |
|---|---|
| RM190 | RM95.50 |
| RM250 | RM140.50 |
| RM275 | RM159.25 |
| RM415 | RM264.25 |
How much is left after the loan instalment?
Now put market figures into the example. Rates and occupancy are reported separately by AirROI, so these rows are illustrations and not real units.
| Scenario | Nights a month | Owner's monthly result before loan | After RM1,842 instalment | Net yield on RM450,000 |
|---|---|---|---|---|
| Bottom quarter: 13%, RM190 | 4.0 | −RM182 | −RM2,024 | −0.5% |
| Median: 27%, RM275 | 8.2 | RM748 | −RM1,094 | 2.0% |
| Top-quarter occupancy: 46%, RM275 | 14.0 | RM1,668 | −RM174 | 4.4% |
| Top-tenth occupancy: 65%, RM275 | 19.8 | RM2,589 | +RM747 | 6.9% |
| Top quarter on both: 46%, RM415 | 14.0 | RM3,137 | +RM1,295 | 8.4% |
| Long-term tenant at RM2,000 | n/a | RM1,590 | −RM252 | 4.2% |
The last Airbnb row looks best, but RM415 is the top-quarter rate across every unit size and may belong to bigger units than RM450,000 buys. The tenant row counts the same RM410 of owner fixed costs as our earlier articles, and leaves out agent fees and empty months.
How much occupancy do I need to make it work?
There are three different bars, and people mix them up:
- Cover the bills. The unit stops losing money by itself.
- Cover the interest. Below this, you lose money each month unless the price of the unit rises.
- Cover the full instalment. You stop topping up from your own pocket.
| Nightly rate (example) | Cover bills | Cover interest | Cover full instalment |
|---|---|---|---|
| RM190 | 19% | 68% | 83% |
| RM250 | 13% | 46% | 56% |
| RM275 | 12% | 41% | 50% |
| RM415 | 7% | 25% | 30% |
Compare that with the market: the median listing is at about 27% and only a quarter of listings reach 46%. So at a mid-range rate, covering the full instalment takes better occupancy than most listings manage. That is the plain answer to the question in the title.
What about the income from a real owner's unit?
Here is what one of our owners' units did, per unit: December 2025 was RM6,708 gross and RM5,031 paid to the owner, and June 2026 was RM6,303 gross and RM4,875 paid. Those months clear an RM1,842 instalment easily. But the same owner's quiet months were RM2,388 gross in November 2025, RM3,182 in February 2026 and RM2,569 in May 2026, and those figures are before any costs. Those units are in KSL D'Esplanade and Paragon Suite, both city centre, and they are not an average of what every unit does. The full statements show the detail. Do not multiply December by twelve.
Is a higher net yield than my loan rate the real test?
It is the simplest test we know. Take the owner's yearly result before the loan and divide it by the price. If that net yield is below your loan rate, borrowing makes the return worse: each ringgit from the bank costs more than the unit earns. In our table, the median row earns 2.0% against an example loan rate of 4.2%. You are then relying on the price of the unit going up.
That is a real risk to weigh. The Star, reporting CIMB Research in July 2026, gave Johor serviced apartment stock of 108,863 units with 41,832 more coming through 2030 and 18,712 planned through 2031. CIMB called itself cautious on Johor Bahru high-rise. A September 2026 Bamboo Routes article put completed unsold serviced apartments in the state at 9,972 in the first quarter. The buyer you later sell to also has plenty of choice, as our selling article explains.
Long-term rent is not a magic answer either. Olive Tree's chief executive told the NST in January 2026 that most Johor serviced apartments earn 2% to 4% gross, up to about 5% for prime ones, while SPEEDHOME's figure is 5% to 6%. Our RM2,000 example is 5.3% gross, near the top of those ranges, so get a real rent quote for your building.
So who should buy a condo for Airbnb, and who should not?
It can make sense if:
- You are paying cash or a much smaller loan, so the interest bar is low.
- You want the unit for your own use too, and the homestay income is a helper rather than the plan.
- The numbers from similar units in that exact building clear the instalment bar, even in a year with a few weak months.
- You could still carry the unit if bookings fell or the building banned short stays.
We would not buy if:
- The plan only works with December numbers or with a top-tenth occupancy.
- Your household cannot absorb a shortfall. In the median row that is about RM13,128 a year.
- You are counting on the rise in price to rescue a thin yield.
- The rent quote for the same unit would not get you close to the instalment. If a tenant cannot nearly carry it, there is no safety net when homestay disappoints.
If you already own the unit, this is a different question. The instalment is there either way, so compare homestay directly with a tenant using homestay vs long-term rental.
What should I check before I sign?
- Ask the building first. Does the management allow short stays, and has any vote been proposed? See what happens when a condo bans Airbnb and the licence article.
- Count real calendars. Check five similar listings in that building for the next 60 days. Closed nights can be owner blocks, so treat that as a ceiling.
- Use a real loan offer. Rerun the bars with your own rate, tenure and maintenance fee.
- Get a real rent quote. That is your fallback number.
- Budget tax. Our figures are before tax; see homestay income tax. Singaporeans face different rules, covered in our Singaporean buyer article.
- Ask for evidence. Ask any manager, including us, for 12 months of statements from a comparable unit in the same building, with quiet months included.
What should an owner be careful about?
- We have an interest. We only earn if the unit runs as a homestay. Even so, on these numbers a typical unit bought with a 90% loan needs topping up every month, and we would rather say that before you buy.
- We cannot promise occupancy or income. On the 90% plan we also earn from gross revenue, even when the booking is thin for you, and that plan carries a three-year term with an RM5,000 deposit that is forfeited on early exit.
- The example is sensitive. A lower price, a smaller loan or a stronger building changes the answer quickly, in either direction.
This article is general information, not financial, tax, legal or investment advice. Speak to your bank, lawyer and tax adviser before buying.
Sources read on 9 November 2026: AirROI Johor Bahru, Airbtics, RinggitPlus on the OPR, The Star on 17 July 2026, NST in January 2026, Bamboo Routes on 21 September 2026. Owner figures come from real statements with the identity removed.
Thinking of a specific building, in Johor Bahru or Desaru? Send the unit size and your loan details through /ownerenquiry and we will run these three bars with you, including when the answer is not to buy.