Buying A Vacation Rental In Hawaii May 2026

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.

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. buying a vacation rental in hawaii

Hawaii is primarily an rather than a high cash-flow market. New registration rules under Ordinance 25-50 take effect

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). Significant changes are underway following Bill 9, which

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.

Better-performing properties typically yield a 4–6% cash return .