What a realistic rental yield on Koh Phangan looks like

If you have browsed property listings on Koh Phangan, you have probably seen the promises: 25% returns on rental, 30% on resale. Here is what our own data says — and how to check any number you are shown.

Where our numbers come from

We continuously track Airbnb listings across Koh Phangan — over a thousand active rentals across 20+ districts — and publish the medians on our Insights page. No projections, no brochure math: live asking rates, review counts, and ratings.

The honest math

The median nightly rate (ADR) for a villa on Koh Phangan is about ฿6,200 (149 villas in the sample). Annual gross revenue depends on occupancy, which no platform reports publicly — so we model three scenarios:

| Scenario | Occupancy | Gross revenue / year | |---|---|---| | Conservative | 40% | ≈ ฿900k | | Base | 55% | ≈ ฿1.24M | | Strong | 70% | ≈ ฿1.58M |

That is gross. Before it becomes *your* return, subtract:

• Operating costs — cleaning, utilities, pool and garden care, repairs: typically 20–30% of revenue
• Management — 20–30% of revenue if you are not on the island yourself
• Platform fees — ~3–16% depending on channel
• Capex reserve — 3–5% of revenue for furniture and equipment renewal
• Land lease payments — if the structure sits on leased land (common and often sensible on Phangan)

Run the numbers and a well-located, well-run villa typically nets a single-digit to low-teens yield on all-in cost. That is a genuinely good result — Phangan rates compare favourably with most resort markets. But it is not 25%.

What actually moves the number

• District. Median ADR ranges from under ฿2,000 to ฿7,000 across the island. Premium pockets earn their premium — but they also cost more to buy into.
• Sample size matters. Some districts have only a handful of comparable listings; a median of seven properties is a hint, not a fact. We publish our sample sizes — ask anyone else for theirs.
• Build quality and photos move occupancy more than most buyers expect.

How to check any ROI claim

Ask three questions: What ADR does the model assume, and against which comparables? What occupancy — and is it sourced or guessed? What is included in costs? If the answer is a confident percentage with no model behind it, that percentage is marketing.

Our ROI calculator runs this exact math — scenarios, costs, leasehold payments included — on any property you are considering. The assumptions are on sliders, not behind a curtain.