Buying A Vacation Rental In Hawaii -
Hawaii has empowered counties to phase out short-term rentals (STRs) in residential areas to address housing scarcity. Zoning is now the primary factor in determining a property's legality.
New registration rules under Ordinance 25-50 take effect July 1, 2026 . All STRs (hosted and unhosted) must register with the county, with fees ranging from $250 to $500 annually. buying a vacation rental in hawaii
STRs are largely confined to Visitor Destination Areas (VDAs). New permits outside these areas have not been issued since 2008. 2. Financial Performance & Realities Hawaii has empowered counties to phase out short-term
This report details the complexities of purchasing a vacation rental in Hawaii in 2026. Significant legislative shifts have reshaped the investment landscape, making due diligence on zoning and tax compliance the most critical components of a successful acquisition. 1. All STRs (hosted and unhosted) must register with
Hawaii is primarily an rather than a high cash-flow market.
Significant changes are underway following Bill 9, which aims to phase out approximately 7,000 units in apartment-zoned districts (the "Minatoya List") by January 1, 2029 (West Maui) and 2031 (rest of the island). Focus only on hotel-zoned units or permitted Short-Term Rental Homes (STRH).
Investors often seek properties where gross annual income is at least 10% of the purchase price (e.g., $100k gross for a $1M property).