State Housing Schemes Compared: Selangor, Johor, Penang, Sabah, Who Offers the Best Deal?
Edited by Teh Kim Guan, ACMA, CGMA · Updated 2026-06-24
Each Malaysian state runs its own affordable housing programme with distinct price caps, income bands and eligibility rules. Selangor has the most structured tiered system, Johor offers some of the lowest price floors outside of Sabah, Penang sets the highest income ceiling in the country, and Sabah provides deep subsidies for rural and indigenous buyers. The right scheme for you depends on where you work, how much you earn and what type of property you need.
Why state schemes exist alongside national ones
National programmes such as PR1MA and MyHome operate across all states but are controlled by federal agencies. State governments run parallel schemes because they control land supply, set local affordability benchmarks and respond to their own housing deficits. Start with the state scheme for the state where you work or intend to live, then layer in federal options such as PR1MA and MyHome as a backup.
Selangor: Rumah Selangorku (RSKU)
Selangor runs the most granular state housing programme in the country. Administered by the Lembaga Perumahan dan Hartanah Selangor (LPHS), Rumah Selangorku offers five categories pegged to household income.
Price and income table
| Category | Price Range | Household Income Limit | Target Group |
|---|---|---|---|
| Type A | RM42,000 | Up to RM3,500/mth | B40 lower |
| Type B | RM100,000 – RM150,000 | Up to RM7,000/mth | B40 upper |
| Type C | RM150,001 – RM200,000 | Up to RM10,000/mth | M40 lower |
| Type D | RM200,001 – RM250,000 | Up to RM14,500/mth | M40 upper |
| Type E | RM250,001 – RM300,000 | Up to RM14,500/mth | M40 upper |
Source: LPHS FAQ (ehartanah.lphs.gov.my), 2024-2025.
Key eligibility rules
- Applicant and spouse must not already own any residential property in Selangor.
- Property must be owner-occupied. Renting out an RSKU unit breaches the purchase terms.
- A five-year moratorium applies before the unit can be sold or transferred.
- Applications are submitted through the LPHS e-hartanah portal. Each household may apply for one category only.
What makes RSKU stand out
The five-tier structure means even households earning up to RM14,500 a month can access a subsidised price cap. Supply at the Type A level is limited, but Selangor’s density of projects near the LRT and MRT network adds practical value on top of the price discount.
Johor: Rumah Mampu Milik Johor (RMMJ)
Johor’s state scheme, administered by Perbadanan Perumahan Johor (PPJ) and coordinated with the State Housing and Local Government Department, targets residents working in Johor. The state has pledged 30,000 RMMJ units by 2026 across Johor Bahru, Kulai, Batu Pahat and other districts.
Price and income overview
| Category | Approximate Price | Notes |
|---|---|---|
| Low-cost (PPR) | RM42,000 – RM80,000 | B40, income ceiling varies by district |
| Medium low-cost | RM80,001 – RM150,000 | B40 to lower M40 |
| Affordable | RM150,001 – RM250,000 | M40, household income generally below RM10,000/mth |
Source: Jabatan Perumahan Negara / Johor State Housing Department, 2025.
What Johor adds on top
Johor Bahru commands higher prices than outlying districts such as Segamat and Kluang, so supply of low-cost RMMJ units is more accessible outside the city. The scheme prioritises Johor residents and those employed in the state. For first-time buyers, Johor also offers a state-level stamp duty exemption for properties below RM300,000, which stacks on top of the price cap benefit.
Penang: Rumah MutiaraKu
Penang’s affordable housing programme is administered by the Lembaga Perumahan Negeri Pulau Pinang (LPNPP) under the brand Rumah MutiaraKu. By late 2025, approximately 170,706 units had been completed, representing 77.6% of the state’s 220,000-unit target for 2030 (Penang Property Talk, November 2025).
Price and income overview
| Category | Price Cap | Household Income Limit |
|---|---|---|
| RMM Type A (social housing) | RM42,000 – RM72,500 | B40 |
| RMM Type B (low-medium cost) | RM72,501 – RM150,000 | Up to RM8,000/mth |
| RMM Type C (affordable) | RM150,001 – RM400,000 | Up to RM12,000/mth |
| Open Market (PN4) | RM400,001 and above | Up to RM20,000/mth (T20 eligible) |
Source: LPNPP official site (lpnpp.gov.my), 2024.
What makes Penang different
Penang sets the highest income ceiling of any state scheme in Malaysia: households earning up to RM20,000 a month can access certain open-market affordable units. This reflects Penang’s elevated property market, where even RM400,000 buys relatively little on the island. The state also enforces a resale moratorium and owner-occupancy requirement broadly similar to Selangor’s.
Penang’s island geography means supply is structurally constrained. Buyers willing to consider Seberang Perai (mainland Penang) will find more available units and shorter waiting times.
Sabah: State Housing and Land-Subsidy Programmes
Sabah’s affordable housing framework is administered through multiple channels: the Jabatan Perumahan Rakyat Sabah (JPRS), the Sabah Housing and Real Estate Developers Association (SHAREDA) pipeline, and federal-allocation programmes channelled through the Sabah state government.
Key features
| Scheme Type | Price Range | Notes |
|---|---|---|
| PPR Sabah (public housing) | RM30,000 – RM65,000 | Federal-funded, state-allocated; deep subsidy for B40 |
| Rumah Mesra Rakyat (SPNB) | RM65,000 (subsidised from RM120,000+) | Owner-built on own land; SPNB absorbs cost gap |
| State land-grant housing | Cost price, varies | Indigenous communities (Orang Asal / Bumiputera Sabah) priority |
| Affordable private (SHAREDA) | RM100,000 – RM300,000 | M40, linked to state planning consent conditions |
Source: SPNB (spnb.com.my); Jabatan Perumahan Negara / KPKT 2025 data.
What makes Sabah different
Sabah has the lowest baseline prices nationally for B40 buyers, reflecting lower land costs and Sabah Bumiputera land-grant policies. The Rumah Mesra Rakyat programme covers owner-built homes on freehold or TOL land at a heavily subsidised rate, with income limits typically at RM3,000 to RM4,000 per month for the deepest tiers. Waiting lists in Kota Kinabalu are long; scheme availability in rural districts is limited.
Side-by-side comparison
| Factor | Selangor | Johor | Penang | Sabah |
|---|---|---|---|---|
| Lowest price cap | RM42,000 | RM42,000 | RM42,000 | RM30,000 |
| Highest scheme price | RM300,000 | RM250,000 | RM400,000 | RM300,000 |
| Max income ceiling | RM14,500/mth | ~RM10,000/mth | RM20,000/mth | ~RM4,000/mth (deep subsidy) |
| No. of income tiers | 5 | 3 | 4 | Multiple channels |
| Moratorium period | 5 years | Varies | Varies | Varies |
| Key administering body | LPHS | PPJ / State Dept | LPNPP | JPRS / SPNB |
| Supply pressure | Very high | Moderate-high | High (island) | Moderate |
How to decide which state scheme suits you
B40 earner in the Klang Valley: Selangor’s Type A and Type B categories provide the clearest path. The tiered structure keeps B40 and M40 applicants in separate queues.
Moving to Johor for work: RMMJ is straightforward and the state’s stamp duty relief stacks on the price cap. Budget for the district you can realistically commute from.
Buying in Penang: The high income ceiling on Rumah MutiaraKu means M40 households have options, but manage expectations on supply. Seberang Perai units clear faster than island units.
Based in Sabah with land but no construction funds: Rumah Mesra Rakyat covers the build cost gap directly rather than discounting a purchase price. Check SPNB eligibility first.
For more on how state schemes interact with federal programmes, see PR1MA and MyHome eligibility explained and stamp duty exemptions for first-time buyers.
Key takeaways
- Sabah has the lowest price floor (RM30,000 PPR) but the most restricted income ceiling for deep-subsidy tiers.
- Selangor has the most transparent system: five categories with published income bands.
- Penang sets the highest income ceiling (RM20,000/mth), reflecting its elevated market.
- Johor’s RMMJ suits mid-income buyers, especially with the state stamp duty exemption layered on.
- All four states enforce owner-occupancy and a resale moratorium (typically five years or more).
- National schemes (PR1MA, MyHome) run alongside state programmes; you cannot own more than one subsidised unit.
- Verify income caps and project lists directly with the state authority before applying, as they change annually.
Frequently asked questions
Can I apply for a state housing scheme if I work in a different state from where I want to buy? Generally no. State schemes are for residents or people working in that state. Selangor, Johor and Penang all require the applicant to have a nexus to the state (employment or residency). Check the specific state authority’s eligibility page before applying.
What happens if I already own property in another state? Most state schemes (including Rumah Selangorku) bar applicants who own residential property anywhere in Malaysia. Some schemes only check ownership within the same state. Review the exact wording for the scheme you are targeting.
Are the income limits individual or household? Combined household income (applicant and spouse). Single applicants use their own income only. Always declare accurately: false declarations can result in the unit being revoked.
Can I rent out the unit after I buy it? No. All four state schemes enforce owner-occupancy. Renting during the moratorium period breaches the sale and purchase agreement and can trigger enforcement action, including forced repurchase by the authority.
Do these state schemes come with EPF withdrawal eligibility? Yes. Units under recognised state affordable housing schemes qualify for EPF Account 2 housing withdrawal. Confirm the scheme is on the EPF approved list before factoring this into your financing plan. See EPF Account 2 housing withdrawal explained for the process.
Malaysia-based chartered management accountant (ACMA, CGMA) and embedded executive who has worked across finance, operations, and product roles with Malaysian companies. Every WangWise guide is checked against official Malaysian sources. How we review · About the editor
Educational content only, not financial advice. Verify current figures with official sources.