What rental yield can you expect in Johor? (2026)

Johor's rental market has become one of Malaysia's most dynamic property investment destinations, driven by major infrastructure projects and cross-border demand from Singapore.

We constantly update this blog post with the latest rental yield data and market trends for Johor.

Below, we break down gross and net rental yields, vacancy rates, the best neighborhoods for returns, and the costs that affect your bottom line.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Johor.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Johor. If you’d like to learn more about us, you can check our presentation page.

What are the rental yields in Johor as of 2026?

What's the average gross rental yield in Johor as of 2026?

As of early 2026, the average gross rental yield in Johor stands at approximately 5.5% to 6.25% per year, placing it among Malaysia's top-performing rental markets.

For most residential properties in Johor, gross yields range from about 4% for premium landed homes to 7% to 8% for well-located condominiums near the RTS Link corridor.

This performance notably outpaces Malaysia's national average of around 5.19%, making Johor particularly attractive for investors seeking stronger cash flow than Kuala Lumpur or Penang.

The single most important factor driving these yields is the upcoming RTS Link connecting Johor Bahru to Singapore, which has dramatically increased rental demand from cross-border commuters and Singaporean investors.

What's the average net rental yield in Johor as of 2026?

As of early 2026, the average net rental yield in Johor is approximately 3.5% to 4.5% per year after accounting for recurring costs and vacancy.

The typical difference between gross and net yields in Johor ranges from 1.5 to 2 percentage points, meaning investors lose about a third of gross returns to operating expenses.

The expense that most significantly reduces gross yield in Johor is maintenance fees, which for condominiums typically run RM0.25 to RM0.50 per square foot monthly, adding RM3,000 to RM6,000 (USD 670 to 1,340) annually for a 1,000 square foot unit.

Net yields for standard Johor investment properties range from about 2.5% in premium areas to around 5% for optimally managed smaller units in high-demand neighborhoods.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Johor.

We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What yield is considered "good" in Johor in 2026?

For investors in Johor in 2026, a gross rental yield of 6% or higher is generally considered good, while anything above 7% puts you in the high-performing category that typically requires trade-offs like smaller units or emerging neighborhoods.

The threshold separating average from high-performing properties in Johor sits at around 5.5% gross, with anything below 5% indicating a premium price area or suboptimal market positioning.

How much do yields vary by neighborhood in Johor as of 2026?

As of early 2026, gross rental yields in Johor range dramatically from about 3.5% in premium areas to over 7% in affordable high-demand zones.

Neighborhoods delivering the highest yields include Johor Bahru City Centre, Bukit Chagar near the RTS station, Tampoi, Plentong, and Mount Austin, where working professionals and cross-border commuters seek transit-accessible housing.

The lowest yields appear in premium enclaves like Horizon Hills, East Ledang in Iskandar Puteri, and luxury Danga Bay developments, where high prices outstrip what tenants will pay monthly.

Yields vary so much across Johor because affordable areas near employment centers command competitive rents while expensive areas have prices that far outstrip achievable rental income.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Johor.

How much do yields vary by property type in Johor as of 2026?

As of early 2026, gross yields in Johor vary from about 4% to 5% for landed houses to 6% to 8% for well-positioned studios and serviced apartments near transit hubs.

Studios and small one-bedroom apartments deliver the highest yields, particularly serviced residences near the RTS corridor, where compact sizes mean lower prices but strong rents from professionals and commuters.

Standalone landed houses, especially larger bungalows and semi-detached homes, deliver the lowest yields because high purchase prices and maintenance costs aren't offset by proportionally higher rents.

Yields differ between property types because rent per square meter doesn't scale linearly with size, so smaller units command higher rent relative to their cost.

By the way, you might want to read the following:

• What rental yields can you expect for an apartment in Johor?
• What rental yields can you expect for a condo in Johor?

What's the typical vacancy rate in Johor as of 2026?

As of early 2026, typical residential vacancy in Johor for long-term rentals is around 5% to 8% in well-positioned properties, with city districts achieving over 70% occupancy.

Vacancy rates range from 3% in high-demand transit-connected areas to over 15% in locations with heavy new supply or unrealistic pricing.

The main factor driving vacancy is proximity to employment centers and the RTS Link, where well-located properties fill quickly while isolated locations struggle.

Johor's vacancy has improved significantly, with the residential overhang dropping 20% from 2022 to 2024 to just 3,030 unsold units, signaling a healthier market than most Malaysian states.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Johor.

What's the rent-to-price ratio in Johor as of 2026?

As of early 2026, the average rent-to-price ratio in Johor is approximately 0.46% to 0.52% per month, meaning landlords collect around RM460 to RM520 monthly for every RM100,000 of property value.

A rent-to-price ratio of 0.5% or higher monthly is considered favorable for Johor buy-to-let investors, translating directly to a 6% annual gross yield.

Johor's ratio compares favorably to Kuala Lumpur's 0.38% and Penang's 0.33% to 0.35%, making it one of Malaysia's most attractive destinations for cash-flow investors.

We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which neighborhoods and micro-areas in Johor give the best yields as of 2026?

Where are the highest-yield areas in Johor as of 2026?

As of early 2026, the top highest-yield neighborhoods in Johor are Johor Bahru City Centre (particularly Bukit Chagar near the RTS station), Tampoi, and Plentong, where gross yields consistently reach 5.8% to 7.1%.

In these top-performing Johor areas, average gross yields range between 6% and 8% for well-positioned condominiums, with strongest returns near the RTS Link station.

These high-yield areas share affordable entry prices combined with strong renter demand from professionals, cross-border commuters, and young families seeking transit-accessible housing.

You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Johor.

Where are the lowest-yield areas in Johor as of 2026?

As of early 2026, the lowest-yield neighborhoods in Johor are Horizon Hills, East Ledang in Iskandar Puteri, and premium Danga Bay developments, where gross yields typically fall between 3.3% and 4.5%.

In these low-yield Johor areas, average gross yields sit between 3% and 4.5%, below the national average and significantly underperforming more affordable JB neighborhoods.

Yields are compressed because property prices reflect lifestyle premiums and prestige factors that tenants won't pay proportional rents for.

Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Johor.

Which areas have the lowest vacancy in Johor as of 2026?

As of early 2026, the neighborhoods with lowest vacancy in Johor are Johor Bahru City Centre, Medini in Iskandar Puteri, and Mount Austin, where well-priced units fill within two to four weeks.

In these low-vacancy areas, vacancy rates sit between 3% and 5%, translating to 95%+ occupancy for competitively priced properties.

The main demand driver is concentration of employment, transit accessibility, and amenities attracting professionals, including Malaysians commuting daily to Singapore.

The trade-off is that factors driving high occupancy also attract competition, pushing purchase prices up and compressing yields versus slightly less central locations.

Which areas have the most renter demand in Johor right now?

The neighborhoods with strongest renter demand in Johor are Johor Bahru City Centre around the RTS corridor, Iskandar Puteri's Medini district, and Tebrau, where landlords report consistent inquiries and short listing periods.

The renter profile driving demand is young to mid-career professionals, including Malaysians working in Singapore seeking affordable housing near the border and expatriates in Johor's growing business districts.

In these high-demand neighborhoods, competitively priced listings typically fill within two to three weeks, with premium RTS-adjacent properties often securing tenants in the first week.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Johor.

Which upcoming projects could boost rents and rental yields in Johor as of 2026?

As of early 2026, the top infrastructure projects expected to boost Johor rents are the RTS Link (operational December 2026), the Johor-Singapore Special Economic Zone (JS-SEZ), and the proposed E-ART transit system covering Skudai, Tebrau, and Iskandar Puteri.

Neighborhoods most likely to benefit are Bukit Chagar, JB City Centre, Iskandar Puteri, Medini, and Tebrau, which gain improved connectivity and commercial development spillover.

Once completed, investors might expect rent increases of 10% to 20% over two to three years, with RTS-adjacent properties potentially seeing stronger appreciation based on 18% to 20% price gains already recorded during construction.

You'll find our latest property market analysis about Johor here.

What property type should I buy for renting in Johor as of 2026?

Between studios and larger units in Johor, which performs best in 2026?

As of early 2026, studios and small one-bedroom apartments outperform larger units on yield in Johor, typically delivering 6% to 7% gross compared to 4% to 5% for two-bedroom or larger units.

Studios achieve RM1,800 to RM2,300 monthly (USD 400 to 510, EUR 370 to 475) on RM300,000 to RM400,000 purchases, while two-bedroom units command RM2,500 to RM3,200 on higher prices that dilute yield.

Studios outperform because rent doesn't scale with size: a studio at half the price of a two-bedroom might command two-thirds of the rent, creating better returns on capital.

However, for stable long-term family tenants who stay for years, two-bedroom apartments in family-friendly neighborhoods like Tebrau might be better despite lower headline yields.

What property types are in most demand in Johor as of 2026?

As of early 2026, the most in-demand property type in Johor is condominiums and serviced apartments in transit-accessible locations, driven by cross-border commuters prioritizing convenience.

The top three types by tenant demand are serviced apartments near the RTS corridor, mid-range condominiums in Mount Austin and Tebrau, and compact landed townhouses in gated communities.

The primary trend driving demand is cross-border living, where Malaysians working in Singapore and Singaporeans seeking affordable options create unprecedented demand for transit-connected residences.

Currently underperforming are large standalone bungalows and high-priced luxury condominiums, where the tenant pool is limited and purchase prices make acceptable yields nearly impossible.

What unit size has the best yield per m² in Johor as of 2026?

As of early 2026, units between 400 and 650 square feet (37 to 60 square meters) deliver the best gross yield per square meter in Johor, hitting the sweet spot between purchase efficiency and rental demand.

For this optimal size in Johor, typical gross yield per square meter is RM4.50 to RM5.50 per square foot monthly (USD 1.00 to 1.22, EUR 0.93 to 1.13), compared to RM3.00 to RM3.50 for units above 1,000 square feet.

Smaller units have better yield because tenants set budgets based on income, not size: a 500 square foot studio might rent for RM1,800 while a 1,200 square foot apartment only achieves RM2,800.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Johor.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

What costs cut my net yield in Johor as of 2026?

What are typical property taxes and recurring local fees in Johor as of 2026?

As of early 2026, annual property tax for a typical Johor rental apartment includes assessment tax of RM1,200 to RM2,400 (USD 270 to 535, EUR 250 to 495) plus quit rent of RM50 to RM150 (USD 11 to 33, EUR 10 to 31).

Other recurring fees include quit rent at RM0.35 to RM1.00 per square foot (USD 0.08 to 0.22), insurance of RM300 to RM800 (USD 67 to 178), and any building sinking fund contributions.

These taxes and fees typically represent 3% to 5% of gross annual rental income, relatively modest compared to other Southeast Asian markets.

By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Johor.

What insurance, maintenance, and annual repair costs should landlords budget in Johor right now?

Annual landlord insurance in Johor ranges from RM300 to RM800 (USD 67 to 178, EUR 62 to 165), covering fire, flood, and basic liability.

The recommended annual maintenance budget is 0.8% to 1.2% of property value or 8% to 12% of rental income.

The repair expense that most commonly catches Johor landlords off guard is air conditioning replacement, which costs RM1,500 to RM3,000 (USD 335 to 670) per unit in Malaysia's tropical climate.

Total combined annual cost for insurance, maintenance, and repairs should be approximately RM3,000 to RM6,000 (USD 670 to 1,340, EUR 620 to 1,240) for a typical condominium, or 5% to 8% of gross rental income.

Which utilities do landlords typically pay, and what do they cost in Johor right now?

In Johor, tenants typically cover electricity, water, gas, and internet, while landlords are usually responsible for maintenance fees ranging from RM150 to RM400 monthly (USD 33 to 89, EUR 31 to 83).

For landlord-paid utilities in a typical unit, the monthly cost is primarily maintenance fees of RM150 to RM400, as other utilities are passed to tenants under standard Malaysian tenancy arrangements.

What does full-service property management cost, including leasing, in Johor as of 2026?

As of early 2026, monthly property management fees in Johor run 7% to 10% of collected rent plus 6% GST, translating to RM140 to RM200 (USD 31 to 45, EUR 29 to 41) monthly for a RM2,000 rental.

Tenant-placement fees charged on top of ongoing management are typically half to one month's rent (RM1,000 to RM2,000, USD 222 to 445), payable each time the manager sources a new tenant.

What's a realistic vacancy buffer in Johor as of 2026?

As of early 2026, Johor landlords should set aside 5% to 8% of annual rental income as a vacancy buffer for turnover periods between tenants.

The typical number of vacant weeks is two to four for well-positioned, competitively priced properties, stretching to six to eight weeks for less desirable locations or overpriced units.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Johor, we always rely on the strongest methodology we can, and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source Name	Why It's Authoritative	How We Used It
Global Property Guide	A long-running, internationally recognized rental yield tracker with transparent methodology covering major Malaysian cities.	We used it as a primary benchmark for gross rental yields across Malaysia and Johor. We cross-referenced their figures with local market data.
IQI Global	A major real estate agency with on-the-ground Johor presence and extensive Malaysia-Singapore corridor research.	We used their Johor market reports for demand patterns and yield expectations. We referenced their RTS Link impact and Singaporean buyer data.
Bamboo Routes Market Analysis	Our research team conducting direct interviews with local realtors, property managers, and investors across Johor.	We used proprietary data to validate third-party sources and fill gaps. We incorporated insights from our local property professional network.
NAPIC	Malaysia's official government agency for property transaction data and market statistics.	We used NAPIC data to validate price trends, transaction volumes, and overhang statistics for Johor's residential market.
PropertyGuru Malaysia	Malaysia's largest property portal with comprehensive listing data across all Johor neighborhoods.	We analyzed listings to calculate rent-to-price ratios and identify yield variations. We tracked listing and de-listing speed.
iProperty.com.my	A leading Malaysian property portal publishing market guides and tracking listing trends.	We used neighborhood-level data for demand patterns and rental pricing. We referenced their taxation and buyer cost guides.
EdgeProp Malaysia	A respected property news platform by The Edge Media Group with detailed market analysis.	We used price trend reports to track Johor appreciation patterns. We referenced their coverage of JLL and Rahim & Co briefings.
The Star	One of Malaysia's leading newspapers with comprehensive business and property coverage.	We used their reporting on Johor property momentum and government data releases. We tracked RTS and SEZ development coverage.
Wikipedia RTS Link	A well-referenced compilation of official RTS Link project announcements and progress updates.	We verified RTS completion dates and specifications. We cross-referenced with official government announcements.
Global Property Guide Taxes	A comprehensive international resource documenting Malaysian property tax structures.	We verified assessment rates, quit rent, and rental income tax obligations. We referenced cost breakdowns for foreign buyers.
YYC taxPOD	A Malaysian tax advisory firm with detailed guides on rental income taxation.	We used their rental income tax guides for landlord obligations. We referenced allowable deductions and e-invoicing requirements.
DWG Malaysia	A property advisory firm with clear guides on Malaysian ownership costs.	We used their quit rent and assessment rate explanations. We referenced payment process guides for landlords.
NextSix Blog	A Malaysian property platform with practical landlord guides on maximizing returns.	We used their yield calculation guides and cost estimation methods. We referenced maintenance budgeting advice.
AirROI	A short-term rental analytics platform tracking occupancy and revenue data.	We used Johor Bahru occupancy data as a vacancy reference point. We compared short-term versus long-term rental performance.
Juwai Asia	An international property platform focused on cross-border Asian real estate investment.	We used their RTS Link impact analysis. We referenced Singaporean buyer interest and cross-border investment data.