Buying A Vacation Rental In Hawaii Page

STRs are largely confined to Visitor Destination Areas (VDAs). New permits outside these areas have not been issued since 2008. 2. Financial Performance & Realities

Most properties require 25–30% down to reach a break-even cash flow. Local lenders typically require 20–25% down for vacation rental financing. Hidden Costs: buying a vacation rental in hawaii

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. STRs are largely confined to Visitor Destination Areas

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. All STRs (hosted and unhosted) must register with

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

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).