Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Phnom Penh's property market is included in our pack
This guide breaks down everything foreign investors need to know about renting out residential property in Phnom Penh in 2026, from ownership rules to realistic yield expectations.
We cover the numbers that actually matter: rental income by neighborhood, vacancy rates, tax obligations, and how long-term compares to short-term renting.
We constantly update this blog post to reflect the latest market data and regulatory changes in Cambodia's capital.
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 Phnom Penh.
Insights
- Phnom Penh's condo market now has over 60,000 units with another 20,000 expected by end of 2026, creating real competition for landlords who don't pick the right building or location.
- Gross rental yields in Phnom Penh still reach 6% to 8% in 2026, which remains higher than Bangkok (3% to 4%) and Ho Chi Minh City (4% to 5%) for comparable apartments.
- About 95% of Airbnb guests in Phnom Penh are international visitors, with Americans being the largest group, meaning your short-term rental marketing should target overseas travelers.
- The average short-term rental occupancy in Phnom Penh sits around 35% to 37%, so many Airbnb hosts actually earn less than they would with a stable long-term tenant.
- BKK1 and Tonle Bassac command the highest rents but also the highest purchase prices, so savvy investors often look at Toul Kork or Chamkarmon for better yield ratios.
- Cambodia's property tax threshold starts at 100 million Cambodian riels (roughly $25,000), and most foreign-owned condos exceed this, triggering the 0.1% annual tax.
- Peak tourist season runs November to February, which is when short-term rental income spikes, but landlords should budget for very low occupancy from May to October during the rainy season.
- Furnished apartments in Phnom Penh typically rent 20% to 30% faster than unfurnished units because most expat tenants arrive on short notice and want move-in-ready homes.
Can I legally rent out a property in Phnom Penh as a foreigner right now?
Can a foreigner own-and-rent a residential property in Phnom Penh in 2026?
As of early 2026, foreigners can legally own and rent out condominium units in Phnom Penh (from the first floor and above), but they cannot directly own land or ground-floor units under Cambodia's foreign ownership law.
The most common ownership structure for foreigners is strata title for condos, while those wanting villas or landed houses typically use long-term leases (up to 50 years, renewable) or nominee arrangements through a Cambodian company, though the latter carries higher legal risk.
The single biggest restriction is that foreigners cannot own property within 30 kilometers of Cambodia's borders, and they are capped at owning no more than 70% of the total units in any co-owned building.
If you're not a local, you might want to read our guide to foreign property ownership in Phnom Penh.
Do I need residency to rent out in Phnom Penh right now?
No, you do not need Cambodian residency to rent out a property in Phnom Penh, and many foreign landlords manage their rentals entirely from overseas using local property managers or agents.
However, you should practically expect to need a Cambodian tax identification number (TIN) because rental income is taxable in Cambodia and lease payments can trigger withholding tax obligations, especially if your tenant is a company.
A local bank account is not legally mandatory, but it is strongly recommended because most tenants and property managers in Phnom Penh prefer paying rent via local USD transfers, and international wire fees can eat into your returns.
Managing a Phnom Penh rental remotely is absolutely feasible since the city has a mature ecosystem of English-speaking property managers, and long-term rentals in particular require minimal day-to-day involvement once a good tenant is in place.
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What rental strategy makes the most money in Phnom Penh in 2026?
Is long-term renting more profitable than short-term in Phnom Penh in 2026?
As of early 2026, long-term renting is generally the more reliable and profitable strategy for most Phnom Penh landlords because short-term rental occupancy averages only around 35% to 37%, which often fails to outperform a stable 12-month tenant after accounting for higher operating costs.
A well-managed long-term rental of a 1-bedroom apartment in a prime area like BKK1 can generate roughly $6,000 to $7,500 per year ($500 to $625/month), while a comparable short-term listing averaging $40/night at 37% occupancy would yield only about $5,400 annually before cleaning, platform fees, and turnover costs.
Short-term renting tends to favor properties in very central, tourist-friendly locations like Daun Penh (riverside) or near Wat Phnom, where nightly rates can reach $50 to $70 and where there is genuine tourist foot traffic throughout the peak season from November to February.
What's the average gross rental yield in Phnom Penh in 2026?
As of early 2026, the average gross rental yield for residential apartments in Phnom Penh is approximately 6% to 7%, with well-located condos in strong rental districts sometimes reaching 7.5% to 8%.
The realistic low-to-high gross yield range that covers most Phnom Penh residential properties is 5% to 8.5%, with the variance depending heavily on your purchase price relative to achievable rent rather than the neighborhood alone.
Studios and smaller 1-bedroom apartments typically achieve the highest gross rental yields in Phnom Penh because their lower purchase prices (often $70,000 to $100,000) combine with rents that don't drop proportionally, making the yield math more favorable than for larger units.
By the way, we have much more granular data about rental yields in our property pack about Phnom Penh.
What's the realistic net rental yield after costs in Phnom Penh in 2026?
As of early 2026, the realistic net rental yield for Phnom Penh residential properties typically falls between 3.5% and 6%, depending on your building's fees, management arrangement, and how you structure the lease for tax purposes.
Most landlords in Phnom Penh actually experience net yields in the 4% to 5.5% range once all recurring costs are deducted from the gross rent they collect.
The three main cost categories that reduce gross yield to net yield specifically in Phnom Penh are: (1) withholding tax on rental payments, which can reach 10% to 14% depending on lease structure and tenant type; (2) condo management and maintenance fees, which vary wildly from $50 to $200+ per month depending on the building; and (3) vacancy and turnover costs, which are higher than many new investors expect given the competitive supply of condos in the city.
You might want to check our latest analysis about gross and net rental yields in Phnom Penh.
What monthly rent can I get in Phnom Penh in 2026?
As of early 2026, typical monthly rents in Phnom Penh are approximately $350 to $500 for a studio (1.4 to 2 million riels / 320 to 460 EUR), $500 to $750 for a 1-bedroom (2 to 3 million riels / 460 to 690 EUR), and $800 to $1,300 for a 2-bedroom apartment (3.2 to 5.2 million riels / 735 to 1,195 EUR).
A realistic entry-level monthly rent range for a decent studio in Phnom Penh is $350 to $450 (1.4 to 1.8 million riels / 320 to 415 EUR), assuming a reasonably central location with basic amenities like air conditioning and internet.
For a typical 1-bedroom apartment in Phnom Penh, the mid-range monthly rent falls between $500 and $650 (2 to 2.6 million riels / 460 to 600 EUR), with $550 being a reliable benchmark figure for well-maintained units in neighborhoods like Toul Tom Poung or BKK3.
A typical 2-bedroom apartment commands $900 to $1,200 per month (3.6 to 4.8 million riels / 830 to 1,105 EUR) in desirable areas, though prime BKK1 or Tonle Bassac units with good views and modern finishes can push above $1,500.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Phnom Penh.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia 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 are the real numbers I should budget for renting out in Phnom Penh in 2026?
What's the total "all-in" monthly cost to hold a rental in Phnom Penh in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental condo in Phnom Penh ranges from $150 to $350 (600,000 to 1.4 million riels / 140 to 320 EUR), depending on your building fees and whether you use professional management.
A realistic low-to-high monthly cost range covering most standard Phnom Penh rental properties is $100 to $400 (400,000 to 1.6 million riels / 90 to 370 EUR), with lower-fee buildings and self-managed properties at the bottom and fully-managed units in premium condos at the top.
The single largest cost category for most Phnom Penh landlords is usually the condo management or HOA fee, which can range from $0.50 to $1.50 per square meter per month, meaning a 60 sqm apartment might pay $30 to $90 monthly just for building services before any repairs, taxes, or property management.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Phnom Penh.
What's the typical vacancy rate in Phnom Penh in 2026?
As of early 2026, the typical vacancy rate for long-term rental apartments in Phnom Penh is approximately 10% to 15%, which translates to roughly 1 to 2 months of vacancy per year for a well-located, competitively-priced unit.
Landlords in Phnom Penh should realistically budget for 1 to 2 months of vacancy per year because tenant turnover is common (especially among expats on 1-year contracts), and the condo supply growth means tenants have plenty of alternatives if your unit sits empty too long.
The main factor causing vacancy rates to vary between Phnom Penh neighborhoods is proximity to expat employment centers and lifestyle amenities, with BKK1 and Tonle Bassac enjoying tighter markets while newer developments in Sen Sok or Chroy Changvar can struggle with longer vacancy periods due to weaker tenant demand.
Tenant turnover in Phnom Penh typically peaks between October and December, as this is when many expat contracts end and new arrivals time their moves around the dry season start, meaning landlords should list properties proactively in September to catch incoming tenants.
We have a whole part covering the best rental strategies in our pack about buying a property in Phnom Penh.
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Where do rentals perform best in Phnom Penh in 2026?
Which neighborhoods have the highest long-term demand in Phnom Penh in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Phnom Penh are BKK1 (Boeung Keng Kang 1), Tonle Bassac, and Daun Penh, all of which benefit from walkability, expat-friendly amenities, and proximity to offices and embassies.
Families looking for long-term rentals in Phnom Penh gravitate toward Toul Kork and Sen Sok because these areas offer larger units, quieter streets, proximity to international schools, and more space for children compared to the denser central districts.
Students seeking affordable rentals cluster around Toul Kork (near major universities) and the 7 Makara / Olympic Stadium area, where older but functional apartments are available at lower price points with decent public transport access.
Expats and international professionals strongly prefer BKK1, Tonle Bassac, and the Russian Market (Toul Tom Poung) area for long-term rentals because these neighborhoods offer the walkable, cafe-rich, internationally-oriented lifestyle that most foreign workers prioritize.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phnom Penh.
Which neighborhoods have the best yield in Phnom Penh in 2026?
As of early 2026, the top three neighborhoods offering the best rental yields in Phnom Penh are Toul Kork, Chamkarmon (outside the core BKK1 pocket), and select projects in Sen Sok, where purchase prices remain 20% to 30% below prime areas while rental demand stays solid.
The estimated gross rental yield range for these top-yielding Phnom Penh neighborhoods is 7% to 8.5%, compared to 5.5% to 6.5% in premium-priced areas like central BKK1 or high-end Tonle Bassac towers.
The main characteristic allowing these neighborhoods to achieve higher yields is the gap between strong local and expat tenant demand and relatively suppressed purchase prices that haven't fully caught up with the central districts, making the rent-to-price ratio more favorable for investors.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Phnom Penh.
Where do tenants pay the highest rents in Phnom Penh in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Phnom Penh are BKK1, Tonle Bassac, and Daun Penh (especially the riverside area), where 1-bedroom apartments commonly rent for $700 to $1,200 per month (2.8 to 4.8 million riels / 645 to 1,105 EUR).
The typical monthly rent range for a standard apartment in these premium Phnom Penh neighborhoods is $800 to $1,500 (3.2 to 6 million riels / 735 to 1,380 EUR) for a 1- to 2-bedroom unit, with newer towers and serviced apartments pushing even higher.
The main characteristic making these neighborhoods command the highest rents is their concentration of international businesses, diplomatic missions, high-end restaurants, and wellness amenities that create a "complete lifestyle" package expat tenants are willing to pay a premium for.
The typical tenant profile in these highest-rent Phnom Penh neighborhoods includes senior NGO staff, embassy employees, regional business managers, and high-earning professionals who prioritize convenience, security, and quality of daily life over cost savings.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cambodia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Phnom Penh in 2026?
What features increase rent the most in Phnom Penh in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Phnom Penh are: (1) backup generator power with stable fiber internet, (2) a well-managed building with responsive maintenance and security, and (3) a practical in-unit kitchen with washing machine, because these solve the daily frustrations that tenants in Phnom Penh specifically care about.
Backup power with reliable internet alone can add a 10% to 15% rent premium in Phnom Penh because power outages are still common and remote workers or business professionals will pay more for uninterrupted connectivity.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Phnom Penh is a shared swimming pool or gym, which only moves rent if the building already has a strong reputation; otherwise, tenants view it as a nice-to-have rather than a must-have.
One affordable upgrade that provides a strong return on investment in Phnom Penh is high-quality blackout curtains and a good air conditioning unit, which cost under $500 combined but make the apartment significantly more comfortable in the tropical climate and improve listing photos.
Do furnished rentals rent faster in Phnom Penh in 2026?
As of early 2026, furnished apartments in Phnom Penh typically rent 2 to 4 weeks faster than unfurnished equivalents because most expat tenants arrive on short notice and strongly prefer move-in-ready units that don't require sourcing furniture locally.
Furnished apartments in Phnom Penh command a rent premium of approximately 15% to 25% over unfurnished units, though the premium only holds if the furniture is modern, functional, and photographed well in the listing.
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How regulated is long-term renting in Phnom Penh right now?
Can I freely set rent prices in Phnom Penh right now?
Landlords in Phnom Penh have nearly complete freedom to set initial rent prices because Cambodia does not have rent control laws, and the market operates on straightforward supply-and-demand negotiation between landlord and tenant.
Rent increases during an active tenancy are also not capped by Cambodian law, so landlords can propose increases at lease renewal, though in practice most tenants expect modest annual adjustments (typically 3% to 5%) and will leave if increases feel unreasonable given market alternatives.
What's the standard lease length in Phnom Penh right now?
The standard lease length for residential rentals in Phnom Penh is 12 months, though 6-month leases are also common, especially for expats on shorter assignments or tenants testing a neighborhood before committing longer.
The typical security deposit in Phnom Penh is 1 to 2 months of rent ($500 to $1,500 / 2 to 6 million riels / 460 to 1,380 EUR for a standard apartment), with 2 months being more common for furnished units or higher-end properties.
Cambodia does not have strict statutory rules on security deposit returns, so the terms are governed by your lease agreement, and landlords typically deduct for damages or unpaid utilities before returning the balance within 14 to 30 days of move-out, depending on what the contract specifies.
We made this infographic to show you how property prices in Cambodia 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.
How does short-term renting really work in Phnom Penh in 2026?
Is Airbnb legal in Phnom Penh right now?
Airbnb-style short-term rentals operate widely in Phnom Penh and are not explicitly banned, but they exist in a regulatory gray area because offering accommodation to tourists can fall under Cambodia's tourism law, which governs licensing for accommodation services.
There is no clearly defined Airbnb-specific permit in Phnom Penh, but hosts operating at scale should be aware that the Ministry of Tourism oversees accommodation standards, and technically registering as a guesthouse or serviced apartment may be required for compliant commercial operation.
Cambodia does not currently impose annual night limits or caps on short-term rental days the way some Western cities do, so there is no "90-day rule" or similar restriction preventing year-round Airbnb hosting.
The most common consequence for operating an unlicensed short-term rental in Phnom Penh is not government enforcement but rather building management restrictions, as many condo buildings have internal rules against short-stay guests and can fine or evict owners who violate them.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phnom Penh.
What's the average short-term occupancy in Phnom Penh in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Phnom Penh is approximately 35% to 37%, which means the typical listing is booked roughly 130 to 135 nights per year.
The realistic low-to-high occupancy range for most Phnom Penh short-term rentals is 25% to 50%, with bottom-quartile listings struggling below 25% and top performers in prime locations reaching 50% or slightly higher.
The highest occupancy months for short-term rentals in Phnom Penh are November through February, which coincides with Cambodia's dry season and peak tourist arrivals, when nightly bookings can double compared to the rainy months.
The lowest occupancy months are typically May through September, during the rainy season, when tourism slows significantly and many listings sit empty for extended periods, making this the toughest stretch for Airbnb hosts to cover their costs.
Finally, please note that you can find much more granular data about this topic in our property pack about Phnom Penh.
What's the average nightly rate in Phnom Penh in 2026?
As of early 2026, the average nightly rate for short-term rentals in Phnom Penh is approximately $35 to $45 (140,000 to 180,000 riels / 32 to 41 EUR), with central locations like Daun Penh and BKK1 trending toward the higher end.
The realistic low-to-high nightly rate range covering most Phnom Penh short-term listings is $25 to $70 (100,000 to 280,000 riels / 23 to 64 EUR), with budget studios and suburban units at the bottom and well-designed apartments in prime riverside or expat areas at the top.
The typical nightly rate difference between peak season (November to February) and off-season (May to September) in Phnom Penh is roughly $10 to $20 (40,000 to 80,000 riels / 9 to 18 EUR), as hosts often discount heavily during the rainy months to attract any bookings at all.
Is short-term rental supply saturated in Phnom Penh in 2026?
As of early 2026, the short-term rental market in Phnom Penh is moderately saturated, with over 1,000 active Airbnb listings competing for a relatively limited pool of tourists, which explains why average occupancy hovers around only 35% to 37%.
The number of active short-term rental listings in Phnom Penh has been relatively stable over the past year, neither rapidly growing nor declining, suggesting the market has reached a competitive equilibrium where new entrants roughly match hosts who exit.
The most oversaturated neighborhoods for short-term rentals in Phnom Penh are Chamkarmon (including parts of BKK1) and Daun Penh, where listing density is highest and many undifferentiated apartments compete for the same guest pool.
Neighborhoods in Phnom Penh that still have room for new short-term rental supply include Chroy Changvar (especially near the riverside developments), Toul Kork, and select pockets of Sen Sok, where tourist infrastructure is growing but STR competition remains thinner.
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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 Phnom Penh, 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 | Why it's authoritative | How we used it |
|---|---|---|
| Cambodia Foreign Ownership Law (CDC) | It's the official legal text from a government body. | We used it to define what foreigners can legally own. We also referenced its location restrictions near borders. |
| Law on Tourism (CDC) | It's Cambodia's primary law governing tourism activities. | We used it to explain why Airbnb hosts may face licensing questions. We referenced it to frame short-term rental regulations. |
| General Department of Taxation (GDT) | It's Cambodia's national tax authority. | We used it as the anchor for property tax compliance. We referenced it to support rental income tax guidance. |
| Prakas No. 371 (OD Mekong) | It's a legal database publishing Cambodia's tax regulations. | We used it to confirm the property tax threshold and rate. We translated this into a budgeting rule for landlords. |
| DFDL Legal Updates | DFDL is an established Southeast Asia law firm. | We used it to explain withholding tax mechanics on leases. We highlighted how lease wording affects net yield. |
| Knight Frank Cambodia Research | Knight Frank is a global brokerage with formal methodology. | We used it for rent-per-sqm benchmarks and occupancy data. We referenced its district analysis for neighborhood rankings. |
| Global Property Guide | It's an established international property data publisher. | We used it to anchor current 1-bedroom rent benchmarks. We triangulated its data against broker listings. |
| AirDNA | AirDNA is a widely used short-term rental data provider. | We used it to estimate Airbnb occupancy and nightly rates. We anchored STR income projections to its metrics. |
| Airbtics | Airbtics tracks Airbnb listings and revenue data globally. | We used it to cross-verify occupancy and revenue figures. We referenced its seasonality insights for STR planning. |
| IPS Cambodia | IPS is a leading Phnom Penh real estate agency. | We used their rental price breakdowns by neighborhood. We referenced their tenant demand insights for location guidance. |
| PwC Tax Summaries | PwC is a major global tax firm with regular updates. | We used it to cross-check withholding tax rates. We kept tax claims conservative using their documentation. |
We have made this infographic to give you a quick and clear snapshot of the property market in Cambodia. 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.
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