Malaysian government has introduce public low-cost housing during Malaysian Plan as an initiative to help the low-income household owners and squatters. However, in developing the low-cost housing, the quality and environmental aspects should be emphasized. Post Occupancy Evaluation (POE) is an approach in assessing existing building performance and future development of buildings to ascertain feedback from occupants after the building has been occupied for some time. This paper determines the physical environment based on occupants preference by using the POE tools. Physical environment elements obtained through literature review consists of facilities, spaces and services offered in each housing unit. A sum of 13 physical environment elements were measured by 868 occupants in Johor’s Public Low-cost Housing. Convenience sampling technique was the method used to determine the adequacy of sample throughout data collection process, subsequently it has been analyzed using frequency and factor statistics. The study reveals that physical environment elements were playing the crucial role in every housing unit. However, dwelling unit features, housing conditions and location were mainly the highest preference amongst occupants. In fact, physical environment elements plays an entirely crucial role in developing occupant’s comfort and satisfaction. Nevertheless, a few physical elements that show the least preferable amongst occupant such as external utilities and services, management, lighting and ventilation need to be given more attention in order to create a better environment in the future.