Rental yield calculator Malaysia: gross and net

The short answer

• NAPIC publishes an official gross yield. Its rental tables for January-June 2026 give an average gross yield for each housing scheme it samples. For condominiums and apartments, the median scheme yields 4.6% in Kuala Lumpur, 4.5% in Johor Bahru district, 3.7% in Petaling district, 3.5% on Penang island and 5.3% in Melaka Tengah (NAPIC rental tables, H1 2026, read 29 Oct 2026). Listing-based and crowd-sourced figures below are cross-checks.
• Other published gross yields for Malaysian apartments mostly sit between about 3.5% and 6%. Global Property Guide puts the national average at about 5.3% and Kuala Lumpur at about 4.8% to 4.9% in 2026.
• The range inside one city is wider than the range between cities. On EdgeProp’s building pages, KLCC runs from 3.8% to 6.9%, Mont Kiara from 2.2% to 6.5% and Cheras from 3.3% to 8.6%. Expensive buildings usually show lower yields.
• What you keep is lower. After maintenance charges, sinking fund, quit rent, assessment tax, an agent’s fee and one empty month, our example falls from 4.8% gross to about 3.25% net, before income tax and without any financing.
• Johor Bahru shows the highest headline yields, and the most unsold serviced apartments in the country. Both facts are in the data below. We do not say what happens next.
• Every figure says where it comes from. NAPIC’s yields are measured on observed rents in the schemes it samples; the others come from listings, crowd-sourced estimates or a consultant’s quote, and we say which.

We do not say where to buy. We show what has been published, how it was measured, and how to do the sums yourself.

Gross yield and net yield

Gross yield is a year’s rent divided by the price of the property:

Gross yield = (monthly rent × 12) ÷ price × 100

A unit bought for RM800,000 and let at RM3,200 a month earns RM38,400 a year: a gross yield of 4.8%.

Net yield, as we use it, takes off the costs of owning and letting the unit, then divides by the same price:

Net yield = (rent actually received − owner’s costs) ÷ price × 100

Our net yield is calculated without any financing: it is what the property itself earns on its full price. It is shown before income tax, because tax depends on who you are (see below). Many websites quote a “net yield” without saying which costs they removed. When you compare figures, check that first.

Published gross yields, area by area

Each line gives the source, the date and how the figure was measured. Where two sources disagree, both are shown.

Area	Gross yield	What was measured	Source and date
Kuala Lumpur, whole territory	4.57% median (middle half 3.90% to 5.29%), 300 schemes; serviced apartments 4.32%	NAPIC rental tables: average gross yield per scheme, condominiums and apartments, January-June 2026	NAPIC, Jadual Harga dan Sewa WP Kuala Lumpur H1 2026, read 29 Oct 2026
Johor Bahru district	4.46% median (4.17% to 4.72%), 52 schemes; serviced apartments 4.70%	Same	NAPIC, Johor H1 2026, read 29 Oct 2026
Penang island	3.5% median (2.9% to 3.9%), 66 schemes; serviced apartments 4.5%	Same	NAPIC, Pulau Pinang H1 2026, read 29 Oct 2026
Petaling district (PJ, Subang, Shah Alam)	3.7% median (3.4% to 4.4%), 37 schemes	Same	NAPIC, Selangor H1 2026, read 29 Oct 2026
Melaka Tengah	5.3% median (4.67% to 6.2%), 68 schemes	Same	NAPIC, Melaka H1 2026, read 29 Oct 2026
Kinta district and Ipoh	5.1% median (4.12% to 5.47%), 58 schemes	Same	NAPIC, Perak H1 2026, read 29 Oct 2026
Malaysia, national average	5.27% to 5.28%	Median asking rent ÷ median asking price, apartments, from listings	Global Property Guide, labelled Q1 and Q3 September 2026 update
Kuala Lumpur, whole city	4.81% to 4.86%	Same method, 1 to 3 bedrooms	Global Property Guide, September 2026 update
Kuala Lumpur, centre / outside	3.96% / 4.73%	Crowd-sourced estimates: 191 entries from 30 contributors in 18 months	Numbeo, updated 5 Nov 2026
KLCC	3.84% to 6.90%	Range across 10 buildings: transacted price psf vs asking rent psf	EdgeProp building pages, consulted 29 Oct 2026
Mont Kiara	2.21% to 6.50%	9 buildings; 7 of them between 5.25% and 6.5%	EdgeProp building pages, consulted 29 Oct 2026
Bangsar	3.54% to 7.67%	6 buildings; the top figure rests on 16 units	EdgeProp building pages, consulted 29 Oct 2026
Cheras	3.30% to 8.63%	7 buildings, from flats at RM160 psf to condos at RM566 psf	EdgeProp building pages, consulted 29 Oct 2026
Petaling Jaya, centre / outside	3.61% / 9.51%	Crowd-sourced: only 32 entries from 6 contributors	Numbeo, updated 4 Nov 2026
Penang, centre / outside	4.10% / 5.10%	Crowd-sourced: 121 entries from 19 contributors	Numbeo, updated 4 Nov 2026
George Town	3.39%	Listings	Global Property Guide, September 2026 update
Johor Bahru, centre / outside	5.88% / 7.44%	Crowd-sourced: 91 entries from 15 contributors	Numbeo, updated 4 Nov 2026
Iskandar Puteri	6.28%	Listings	Global Property Guide, September 2026 update
Johor, serviced apartments	2% to 4% (up to 5% for well-managed prime units)	One consultant’s estimate, not a dataset	NST, 5 Jan 2026

How to read these figures

• NAPIC publishes, every half year, the average rent and gross yield of each housing scheme it samples. We give the median scheme and the middle half of the schemes (25th to 75th percentile), for condominiums and apartments, with serviced apartments shown separately. It is the only official figure, but it covers only the schemes NAPIC samples, and gross yields are before costs and tax.
• Global Property Guide compares median asking rents with median asking prices from property listings, mostly apartments, and updates twice a year. Asking prices are not sale prices: a unit can let or sell below its advertised figure. GPG itself says net yields are lower than its gross figures.
• Numbeo is crowd-sourced: visitors type in the rents and prices they believe are typical. It is useful as a cross-check, weak where few people contribute. Petaling Jaya’s 9.51% rests on 6 contributors; treat it as a signal to look closer, not as a market figure.
• EdgeProp shows an “implied rental yield” on each building’s page, comparing recorded sale prices per sq ft with asking rents per sq ft. We report the range across the buildings we read on 29 October 2026, not an area average. Individual pages vary in sample size and period, a building with few sales can show an extreme figure, and EdgeProp recalculates its pages as new rents are advertised, so a building’s figure today may differ from the one in our range.
• DOSM’s consumer price index tracks rent changes (“actual rentals for housing”, up 1.5% year on year in February 2026 according to Bernama), not rent levels or yields.

Rents behind the yields

For a three-bedroom apartment, Numbeo’s contributors put average rents at RM2,384 outside the centre and RM5,047 in the centre of Kuala Lumpur, RM3,662 to RM4,525 in George Town and RM2,838 to RM3,990 in Johor Bahru (Numbeo, 26-27 Oct 2026). Our example rent of RM3,200 sits inside the Kuala Lumpur range.

What a landlord pays

Gross yield ignores every cost below. Ranges are published figures where they exist; where nothing is published, we say so and use an assumption you can change in the calculator.

Cost	Published figure	Source
Maintenance charges	RM0.25 to RM0.385 psf a month in Klang Valley launch estimates; RM0.50 psf in one completed KLCC building	Our maintenance fee guide, press figures 2019-2025
Sinking fund	At least 10% of the charges, by law	Strata Management Act 2013, see the same guide
Parcel rent (quit rent for a strata unit)	No standard rate per sq ft; one published example uses RM180 a year	StashAway, 19 Oct 2026 (an assumed bill, not a tariff)
Assessment tax (cukai taksiran)	In Kuala Lumpur, 4% of the “annual value” of a residential building (2% for low-cost flats). The annual value is DBKL’s estimate of the gross annual rent	DBKL FAQ, consulted 29 Oct 2026
Agent’s letting fee	Up to 1.25 months’ gross rent for a tenancy of up to 3 years, 1.5 months for 3 to 4 years, 1.75 months for 4 to 5 years or more; minimum one month’s rent. The scale does not apply to serviced apartments	Board of Valuers (LPPEH) scale of fees, archived 3 June 2025
Empty months between tenants	No published residential vacancy rate	None found
Repairs and upkeep	No published benchmark	None found

Maintenance charges are usually the biggest line. How they are set, why the law counts share units rather than square feet, and whether a quoted rate includes the sinking fund are covered in our maintenance fee guide. We do not repeat it here.

Assessment tax depends on your council’s valuation, not on the rent you actually charge. Your bill shows the amount; DBKL’s 4% applies to the annual value it has set for your unit.

Worked example (our calculation, no financing)

Line	Amount per year
Rent: RM3,200 × 12	RM38,400
One empty month	− RM3,200
Agent’s fee, one month’s rent	− RM3,200
Maintenance charges: 1,000 sq ft × RM0.40 × 12	− RM4,800
Sinking fund, 10% of charges	− RM480
Parcel rent	− RM100
Assessment tax	− RM600
Net rent before tax	RM26,020
Net yield on RM800,000	3.25% (gross: 4.80%)

Change any figure in the calculator above. The assumptions that move the result most are the rent, the empty months and the maintenance rate.

How rental income is taxed in 2026

Tax residents (in Malaysia for 182 days or more in the year) add their net rent to their other income. It is taxed at the progressive rates, from 0% on the first RM5,000 to 30% above RM2 million, with a 25% band between RM100,001 and RM400,000 (PwC Worldwide Tax Summaries, reviewed 16 June 2026).

Non-residents pay a flat 30% on net rent, with no personal reliefs, and declare it on Form M (HASiL, Non-resident individuals, updated 26 May 2026). There is no withholding tax on rent from a property paid to a non-resident individual: the 10% rate under section 109B applies to rent for movable property only. Tax is paid on the return.

What you can deduct. Expenses incurred wholly and exclusively in producing the rent: assessment tax, quit rent, ordinary repairs that keep the unit in its existing state, rent collection costs and the cost of renewing a tenancy or changing tenant. The cost of replacing furnishings can also be claimed. Not deductible: the initial costs of finding your first tenant, such as advertising, the legal cost of the first tenancy agreement, stamp duty and the agent’s commission (LHDN Public Ruling 12/2018, paragraphs 8.2, 8.3 and 12, published 19 Dec 2018 and still listed as current on 29 Oct 2026).

The 50% exemption for low rents. Resident landlords could exempt half of their rental income on homes let for RM2,000 a month or less, a measure introduced for YA2018 to YA2020 (Ministry of Finance, Budget 2018). We found no official text applying it to YA2026, so our example leaves it out.

On our worked example, a non-resident whose costs were all deductible would pay 30% of RM26,020, about RM7,806. In a first year, the agent’s fee for the first tenant would not be deductible.

Short-term rentals (Airbnb) in 2026

There is no national law yet. On 26 October 2026, the Deputy Housing and Local Government Minister said national guidelines for short-term rental accommodation were still being finalised before going to Cabinet. They would then go to the National Council for Local Government before states and councils adopt them (The Star, 26 Oct 2026).

Your building can ban it. In Innab Salil v Verve Suites Mont’ Kiara Management Corporation (5 October 2020), the Federal Court held that a management corporation can prohibit short-term letting through its by-laws under the Strata Management Act 2013, even on land approved for commercial use (Conventus Law, 23 Oct 2020). Read your building’s house rules before anything else.

Penang. The Private Short-term Accommodation (Local Authorities of Penang) By-laws 2026 took effect on 1 August 2026 (NST, 21 Aug 2026):

• Operators need a licence from the city council (MBPP or MBSP).
• All strata residential properties are barred from short-term lodging in the MBPP area (Penang Island). Serviced apartments, SOHOs and shop offices may be considered, and for serviced apartments the management corporation’s house rules apply.
• Fees: RM50 per application, from RM1,000 a year for up to three rooms, plus RM1,800 a year per unit.
• Penalty: a fine of up to RM2,000, up to one year in prison, or both.
• Amendments approved by the state executive council on 19 October 2026 raise the room limit from five to ten, with a fixed annual licence fee of RM500 per unit and room-based fees from RM400 (one room) to RM1,800 (five to ten rooms). They are due to take effect on 1 January 2027 once gazetted, according to The Edge (23 Oct 2026).

If you see a “short-term yield” quoted for a building, check first whether short stays are allowed there at all.

Why Johor Bahru and serviced apartments look different

Two published facts sit side by side:

• Headline yields are higher than the official figure. Numbeo’s contributors put Johor Bahru at 5.88% to 7.44%, and Global Property Guide puts Iskandar Puteri at 6.28%. NAPIC’s median for condominiums and apartments in Johor Bahru district was 4.46% in H1 2026, and 4.70% for serviced apartments, close to Kuala Lumpur’s 4.57% (NAPIC, Johor H1 2026). Asking-rent and crowd-sourced figures run higher than NAPIC’s observed rents.
• Unsold stock is the largest in the country. In the first half of 2026, Malaysia had 23,375 completed serviced apartments unsold, worth RM16.28 billion, up from 18,752 six months earlier; 55.2% were priced between RM500,000 and RM1 million. Johor held 9,946 of them, and 4,222 of the 33,094 unsold completed homes (NAPIC, Property Market Status Report H1 2026, read 29 Oct 2026).

When many similar units are offered for rent in the same building, landlords compete on price. That is how a Johor consultant explained the 2% to 4% he sees on most serviced apartments there (NST, 5 Jan 2026). A yield computed from asking rents assumes the unit lets at that rent; with heavy supply, that assumption is the one to test. We make no forecast about where Johor rents or prices go next.

Serviced apartments also have their own assessment rate. In Kuala Lumpur, DBKL charges 7% of annual value on a serviced apartment inside the city’s 36 square miles and 5% outside, against 4% for a residential building and 8% to 10% for a commercial building (DBKL FAQ, read 29 Oct 2026). Your bill shows which rate applies to your unit.

About this page

Smart Invest Malaysia’s editorial team wrote and maintains this page. Method: each yield is quoted as its source measured it, with the date and sample, and we name the figures we calculated ourselves. Official, listing-based and EdgeProp figures were checked on 29 October 2026; Numbeo figures were read on 6 November 2026. Where a source gives no figure, we say so instead of filling the gap.

FAQ

What is the average rental yield in Malaysia in 2026? NAPIC does not publish a national figure. Its median gross yields for condominiums and apartments in H1 2026 run from 3.5% (Penang island) to 5.3% (Melaka Tengah) across the main markets, with 4.57% in Kuala Lumpur. Global Property Guide’s listing-based national average is about 5.3%.

What is the expected rental yield in Johor Bahru? We do not forecast. The latest official figure is NAPIC’s: a median gross yield of 4.46% for condominiums and apartments in Johor Bahru district in January-June 2026, and 4.70% for serviced apartments. Crowd-sourced figures are higher (Numbeo: 5.88% in the centre, 4 Nov 2026). See also our Johor Bahru condos near the RTS Link.

What is a good rental yield in Malaysia? We do not grade yields. Published gross averages for apartments are about 4.8% to 4.9% in Kuala Lumpur and about 5.3% nationally (Global Property Guide, 2026). Compare any quoted figure with those, and ask how it was measured.

What is the rental yield in Kuala Lumpur? NAPIC’s median for condominiums and apartments was 4.57% in H1 2026 (4.32% for serviced apartments). Global Property Guide gives about 4.8% to 4.9% gross for apartments across the city. Numbeo’s contributors put it at 3.96% in the centre and 4.73% outside it (5 Nov 2026).

What is the rental yield in Mont Kiara? On EdgeProp’s pages for nine Mont Kiara condominiums, implied gross yields run from 2.21% to 6.50%, with seven buildings between 5.25% and 6.5%. The lowest figure is for the most expensive building in the sample.

What is the rental yield in Penang? Numbeo’s contributors put Penang at 4.10% in the centre and 5.10% outside; Global Property Guide puts George Town at about 3.4% to 3.7%. Short-term letting of strata homes is barred on Penang Island since 1 August 2026.

Is it worth renting out my property in Malaysia? We cannot say for your case. Our worked example falls from 4.8% gross to about 3.25% net after maintenance, sinking fund, quit rent, assessment tax, an agent’s fee and one empty month, before income tax. Use the calculator with your own figures, and read how cities compare in our guide to property investment in Malaysian cities.

How do I calculate net rental yield? Take a year’s rent, subtract the empty months, the agent’s fee, maintenance charges and sinking fund, parcel rent and assessment tax, then divide by the price. Our example goes from 4.8% gross to 3.25% net, before income tax and without financing.

Do foreigners pay tax on Malaysian rent? Yes. A non-resident pays a flat 30% on net rent, files Form M and gets no personal reliefs. No tax is withheld by the tenant on property rent.

Is 3.5% a good rental yield in Malaysia? We do not grade yields. For context, 3.5% is NAPIC’s H1 2026 median gross yield for condominiums and apartments on Penang island, and the middle half of schemes there ran from 2.9% to 3.9%. Kuala Lumpur’s median was 4.57%. A gross figure is before costs and tax: our example falls from 4.8% gross to 3.25% net.

Is a 6% rental yield good? We do not grade yields. A 6% gross yield is above NAPIC’s H1 2026 medians on this page, the highest being 5.3% in Melaka Tengah, whose middle half of schemes ran from 4.67% to 6.2%. EdgeProp shows seven Mont Kiara buildings between 5.25% and 6.5%. Gross is before costs: our example falls from 4.8% gross to 3.25% net.

Is an 8% return on renting good? We do not grade yields. An 8% gross yield is above every NAPIC H1 2026 median on this page (3.5% to 5.3%). Single-building figures can reach it: EdgeProp’s Cheras range tops out at 8.63%, and Numbeo shows 9.51% for Petaling Jaya outside the centre, from 6 contributors. Check the sample size, and whether the rent is asked or achieved.

What is the 2% rule in rental property? The 2% rule is a rule of thumb: monthly rent should equal 2% of the purchase price. That is 24% a year gross (2% × 12). The published Malaysian figures on this page are far lower: NAPIC’s H1 2026 medians run from 3.5% to 5.3% a year. Our RM800,000 example has a monthly rent of 0.4% of the price.

What is the rule of 7 in real estate? We found no official or published Malaysian source for a “rule of 7” in property, and the term is used in more than one way, so we do not apply it. A check we can support is arithmetic: divide a year’s rent by the price. Compare the result with NAPIC’s H1 2026 medians of 3.5% to 5.3%, and ask how any quoted figure was measured.

How do I calculate my rental return? Multiply the monthly rent by 12, divide by the price and multiply by 100. RM3,200 a month on RM800,000 gives RM38,400 a year, a gross yield of 4.8%. For net yield, subtract the costs of owning and letting first (see the worked example) and use the rent you actually receive. The calculator above does both.

What we do not cover

• Financing. Every figure on this page assumes the property is valued at its full price, with no financing of any kind.
• Forecasts. We do not predict rents, prices or yields, and we do not say where to buy.
• Capital gains and selling costs. See our guide to stamp duty, legal fees and RPGT.
• Sabah and Sarawak, which have their own strata and land laws.

Figures checked on 29 October 2026. NAPIC yields and unsold stock were read in NAPIC’s own tables and report, tax rules in LHDN’s texts and assessment rates on DBKL’s site. Listing-based and crowd-sourced figures are attributed to the site that publishes them.