The Malaysian government has favorable policies to improve the affordability for the Malaysians particularly the low-income groups to own a house. The agendas of low-cost housing have been focusing on quality, adequacy, and affordability. However, there are failed housing projects particularly due to the lack of owners’ intentions to stay and other reasons. Therefore, this study aims to investigate the owner satisfaction's mediating role in the relationship between service quality and behavioral intentions (to stay or to move) for low-cost housing. The structured questionnaires were sent to low-cost house owners in southern (administration and business), northern (agriculture) and central (agriculture and industry) regions of Sarawak, and 403 responses were received. Mediated regression analysis and bootstrapping indirect effect were employed in the analysis. The results indicate that service quality has a significant positive relationship with behavioral intentions, and it also significantly contributes to owner satisfaction. However, the relationship between the owner satisfaction and behavioral intentions is not significant. Also, owner satisfaction has no mediating role in the relationship between service quality and behavioral intentions in Sarawak low-cost housing.