1) First, the Definitions: Gross vs Net (Where the Truth Usually Gets Lost)

ROI / Rental yield in practice comes in two versions:

1. Gross yield
   Annual rental income / purchase price.
   This is the result "before" costs.
2. Net yield
   (Annual rental income – all operating costs) / purchase price.
   This is the result that actually matters to investors.

In Thailand, the difference between gross and net can be substantial, because in STR (short-term rentals), operating costs and commissions are genuinely high (management + OTA fees + cleaning + utilities + service).

2) Data Sources Behind Our Numbers (Phuket & Koh Samui)

To ensure ROI isn't just guesswork, we use two types of data:

A) STR Data (Airbnb/Vrbo): Occupancy and ADR

• Phuket (STR): AirDNA shows an average of approximately 57% occupancy and $190 ADR (average daily rate) in market-wide terms.
• Alternatively, Airbtics for Phuket reports approximately 65% occupancy, ADR around 3,001 THB, and average annual revenue of about 696,000 THB (for typical STR units in their sample).
• Koh Samui (STR): AirROI (last updated December 1, 2025) shows for Ko Samui approximately 47% occupancy, $336 ADR, and about $38,952 average annual revenue (in their model/dataset).

Important: Different platforms calculate "averages" differently (sample size, property type, filtering method), so treat these as ranges and reference points, not guarantees.

B) Purchase Price Data (For Sensible Yield Calculations)

• Phuket – median condo price: 144,000 THB/m²
• Koh Samui – median condo price: 88,500 THB/m²

This gives us a baseline for calculating "how much revenue is needed for X yield".

3) Short-Term Rentals (STR) 2026: Phuket vs Koh Samui

3.1 Phuket STR – The "Typical" Market Picture

At the overall Phuket STR market level, we see approximately:

• occupancy around 57% and ADR around $190 (AirDNA)
  or in other representations:
• occupancy around 65% and ADR around 3,001 THB (Airbtics)

What does this mean practically in 2026?
Phuket is a large, competitive market, but one that "operates year-round" (clear seasonality, yet demand persists outside high season). At the same time, supply pressure is increasing in the small unit segment, so the winning product is in good micro-markets (Bang Tao/Cherngtalay, Rawai, etc.) and well-managed operationally.

3.2 Koh Samui STR – Higher Daily Rates, Different Demand Profile

In Ko Samui, AirROI shows:

• $336 ADR and 47% occupancy

This is characteristic of Samui: often higher ADR (especially in villas and larger configurations), but with greater sensitivity to seasonality and "demand windows". Additionally, Samui's market structure is strongly "villa-led" (high proportion of houses/villas managed by operators), which is also reflected in the island's villa supply data.

4) Long-Term Rentals (LTR) 2026: Stability vs Maximization

4.1 Phuket LTR – Market Data and What It Reveals

As a concrete benchmark from the listing market ("listing" data, but at large scale):

• Thailand-Property shows for Phuket median condo rent ~45,816 THB/month and gross rental yield on condos ~9.1% (their indicator is based on listing medians).

This is important because it demonstrates that Phuket has genuine demand for long-term stays, particularly in segments: expats, families, remote workers, "long-stay lifestyle".

4.2 Koh Samui LTR – Often Works, But Differently Than Phuket

In Samui, LTR is strong, but in practice:

• in villas and houses, you often encounter 6–12 month contracts with different cost structures (garden/pool service, higher bills, greater maintenance responsibility),
• and some owners employ a mixed model: high season in STR, off-season in LTR or "mid-term".

Sample long-term rental levels for houses/villas in Samui (listings) can start from approximately ~85,000 THB/month for 3BR (specific listings).

5) Operating Costs 2026: What Actually "Eats" Your ROI

Below is the most important section — because this determines whether your result is 4–6% net or 8–10% net.

5.1 STR Management (Phuket/Samui): Standard Commissions

In STR, the typical model is a commission on revenue.

• For Phuket, the market commonly sees 20–30% of revenue as STR management fees (depending on service scope).

Samui is similar (depending on operator), and with villas, additional fixed service costs apply.

5.2 Platform Commissions (OTA) and Sales Costs

• Airbnb/Vrbo charge service fees (for host and/or guest). This varies by model, but practically means if you don't have strong direct bookings, OTAs "take" part of the margin.

5.3 Condo Maintenance Costs: Common Area Fees (CAM/Common Fees)

In Phuket, typical common area fee ranges (common areas, pool, security, administration) are usually:

• 40–80 THB/m²/month (often averaging around ~50 THB/m²/month in many projects)

This is a cost you pay regardless of occupancy.

5.4 Utilities and Service (STR)

In STR, you typically have:

• electricity and water (often owner's responsibility, depends on agreement),
• internet/TV,
• cleaning after stays,
• laundry/linens,
• equipment replacement,
• minor repairs.

In villas, add:

• pool and garden service,
• humidity/mold prevention,
• more frequent air conditioning maintenance.

5.5 Taxes and Local Fees (General)

In Thailand, Land and Building Tax applies with thresholds and rates depending on property use; for "other residential properties" (e.g., rented / second homes), rates can range from 0.02–0.30% (depending on value and classification).

Practical note: Tax settlements and classifications may vary depending on the owner's situation — this is an element worth calculating with an accountant.

6) Two ROI Models in 2026: Simple Calculations with Examples

Below are model calculations (realistic, but still illustrative) to see how the economics work.

Example A: Phuket Condo ~50 m² (STR)

1. Purchase price (benchmark):
   Median Phuket condo: 144,000 THB/m² → 50 m² ≈ 7.2 million THB
2. STR revenue (market benchmark):
   Airbtics: average annual revenue ≈ 696,000 THB (typical STR in sample)
3. Costs (conservative example):

• STR management: 25% of revenue (middle of 20–30% range)
• common area fees: 50 THB/m²/month → 50 m² = 2,500 THB/month ≈ 30,000 THB/year
• utilities/service/cleaning/repairs: depending on intensity; let's assume 10–15% of revenue as variable cost package (this can be less or more)

Conclusion: gross yield may look attractive, but net yield will depend on whether you have a good operator, strong ADR, and well-managed variable costs.

Example B: Koh Samui 3BR Villa (Mixed STR + LTR Model)

1. The Samui market has a large pool of villas managed by operators (market structure).
2. STR benchmark from AirROI shows high ADR ($336) at 47% occupancy.
3. LTR benchmark from listings: 3BR can be around 85,000 THB/month and up, depending on standard and location.

In Samui, a sensible model is often:

• high season: STR (high ADR)
• low season: mid-term / LTR (occupancy stabilization)

This reduces "empty months" but lowers maximum peak season rates.

7) What's "Better" in 2026: STR or LTR?

Phuket

• STR can deliver higher gross revenue but requires strong operations and has higher commission costs.
• LTR tends to be more stable, and rental median data from the listing market suggests that long-term, Phuket has genuine rental demand.

Koh Samui

• STR often has excellent daily rates, but occupancy and seasonality can significantly swing results.
• Mixed model (STR + mid-term/LTR) is often more operationally practical.

8) Key Operational Insights (What Actually Drives ROI)

1. Location + product trump "paper yield".
2. In STR, the deciding factors are typically: ADR, occupancy, and management costs.
3. In condos, common area fees are very important (because they're fixed).
4. In villas, the key factors are: pool/garden service + maintenance (often larger and more frequent than condos).
5. Net ROI is a result of management, not just "the market".

Thailand Property Investment Returns 2026

ROI – Real Examples (Phuket & Koh Samui)

In the analysis below, we adopt conservative and realistic assumptions:

• occupancy and ADR data from STR platforms (AirDNA / AirROI / Airbtics),
• typical operating costs,
• management company commissions,
• averaged utility rates, CAM, and maintenance.

1) Phuket – Condo (50 m²) for Short-Term Rental (STR)

Assumptions

• Purchase price: 7.2 million THB (144,000 THB/m² × 50 m²)
• ADR: 3,000 THB / night (approx. $85)
• Occupancy: 60% annually
• Days: 365
• STR management commission: 25% of revenue
• Common area fees (CAM): 50 THB/m²/month → ~ 30,000 THB/year
• Other costs (utilities, cleaning, maintenance): 15% of revenue

Calculations

Gross revenue
3,000 THB × (365 × 60%) ≈ 3,000 × 219 ≈ 657,000 THB / year

Operating costs
• STR management 25%: ~ 164,250 THB
• Utilities / cleaning / maintenance ~ 98,550 THB (15%)
• CAM: ~ 30,000 THB
Total costs: ~ 292,800 THB

Net profit
657,000 – 292,800 ≈ 364,200 THB / year

Net ROI
364,200 / 7,200,000 ≈ 5.06% net annually

Example return in USD:
364,200 THB × 0.0286 ≈ approx. $10,416 / year

Note: if you increase occupancy to 65% and/or ADR to 3,200–3,400 THB, realistic net can approach 5.5–6.0%.

2) Phuket – 3-Bedroom Villa (STR)

Assumptions

• Purchase price: 22 million THB (e.g., 350 m² villa × approx. 63,000 THB/m² / landed market)
• ADR: 7,500 THB / night
• Occupancy: 50% (lower than condo, as larger and more expensive to maintain)
• STR management commission: 25%
• Utilities / maintenance: 20% of revenue (higher than condo)
• Pool, garden service, etc.: ~ 80,000 THB/year
• CAM / common fees: ~ none (villas typically don't have CAM, but have service costs)

Calculations

Gross revenue
7,500 × (365 × 50%) = 7,500 × 182.5 ≈ 1,368,750 THB

Operating costs
• STR management (25%): ~ 342,188 THB
• Utilities and maintenance (20%): ~ 273,750 THB
• Service (pool, garden, etc.): 80,000 THB
Total costs: ~ 695,938 THB

Net profit
1,368,750 – 695,938 ≈ 672,812 THB

Net ROI
672,812 / 22,000,000 ≈ 3.06% net annually

In USD:
672,812 × 0.0286 ≈ approx. $19,242 / year

Note: this is a cautious example; if you rent the VILLA in a hybrid model (e.g., STR in season, LTR off-season), net profit can rise closer to 4.0–4.5% (in practice, depends on demand and pool occupancy outside season).

3) Koh Samui – Condo (60 m²) for STR

Assumptions

• Purchase price: 5.31 million THB (88,500 THB/m² × 60 m²)
• ADR: 4,000 THB / night
• Occupancy: 50%
• STR management: 25%
• Utilities / cleaning / maintenance: 15%
• CAM: 30,000 THB/year

Calculations

Gross revenue
4,000 × (365 × 50%) = 4,000 × 182.5 ≈ 730,000 THB

Operating costs
• STR management (25%): ~ 182,500 THB
• Utilities / maintenance (15%): ~ 109,500 THB
• CAM: 30,000 THB
Total costs: ~ 322,000 THB

Net profit
730,000 – 322,000 ≈ 408,000 THB

Net ROI
408,000 / 5,310,000 ≈ 7.68% net annually

In USD:
408,000 × 0.0286 ≈ approx. $11,669 / year

Note: in Samui condos, ROI often looks best in STR, but requires good location and management, because occupancy in Samui is lower than Phuket (generally more seasonal).

4) Koh Samui – 3BR Villa (STR + Seasonal LTR)

Assumptions (Mixed Model)

• Purchase price: 15 million THB
• STR summer season: ADR 8,000 THB, occupancy 55% (number of STR nights in season)
• LTR off-season: rate approx. 80,000 THB/month
• Combined STR + LTR occupancy: 75% evenly throughout year
• STR management: 25% (only for that revenue portion)
• Utilities / maintenance: 18% (higher than condo)
• Pool / garden service: 80,000 THB/year

Calculations (Split)

STR – revenue portion
8,000 × (365 × 55%) ≈ 8,000 × 200.75 ≈ 1,606,000 THB

After STR costs (25% management + 18% utilities/maintenance):
STR net ≈ 1,606,000 – (401,500 + 289,080) ≈ 915,420 THB

LTR – revenue portion
assuming 75% of year (273.75 days) is LTR off-season:
80,000 THB × 9 months = 720,000 THB

LTR costs (maintenance) ~ 15%
LTR net ≈ 720,000 – 108,000 ≈ 612,000 THB

Total net
915,420 + 612,000 – pool/garden service 80,000 ≈ 1,447,420 THB

Net ROI
1,447,420 / 15,000,000 ≈ 9.65% net annually

In USD:
1,447,420 × 0.0286 ≈ approx. $41,396 / year

Note: this is just an example of a mixed model, but it shows that hybrid STR + mid-term/LTR models can significantly boost ROI, especially in seasonal destination locations (Samui).

Summary: How Much Can You Earn in 2026

Property Type	Net ROI (Indicative)	Net Annual Return (USD)
Phuket STR Condo 50 m²	~ 5.0–6.0%	~ $10,400–$12,500
Phuket 3BR Villa STR	~ 3.0–3.5%	~ $19,000–$23,000
Samui STR Condo 60 m²	~ 7.5–8.5%	~ $11,600–$13,500
Samui Villa Mixed Model	~ 8.5–10.0%	~ $39,000–$47,000

Key Operational Conclusions

✔️ Samui condo STR often delivers higher net ROI than Phuket condos — provided ADR is high and occupancy at least 45–55%.
✔️ Phuket condo STR provides a solid profitability foundation, but requires good ADR and management.
✔️ Phuket villas have lower ROI in pure STR, but hybrid models (STR + LTR) significantly improve results.
✔️ Hybrid rentals in Samui (STR + mid-term/LTR) are often the best balance between seasonal revenue and cash flow continuity.

Sources

• AirDNA, Phuket STR overview (occupancy, ADR, revenue benchmark).
• Airbtics, Phuket STR revenue/occupancy/ADR (latest updates December 2025).
• AirROI, Ko Samui STR market analysis 2025 (occupancy, ADR, revenue).
• C9 Hotelworks, Phuket Property Market Update (median condo price).
• C9 Hotelworks, Samui Property Market Update (villa market context, supply structure).
• Thailand-Property, Phuket market insight: median rent and gross rental yield (LTR benchmark).
• Common fees Phuket (CAM/common area fee ranges).
• STR management Phuket: typical range 20–30% of revenue.
• Land and Building Tax – rate and threshold descriptions (informational sources).