What does Maui's Bill 9 change?
Bill 9 ends transient vacation rentals in Maui's A-1 and A-2 apartment districts. The Council approved it 5-3 on final reading on December 15, 2025. Vacation rental use in those districts is set to be prohibited from 2029 in West Maui and from 2031 in the rest of the county.
Many older Kīhei, Kahana and Nāpili condo buildings sit in apartment districts, and many of their units have rented nightly for years. Under Bill 9 that use has an end date. The Council's release (opens in a new tab) puts the county-wide end point at January 1, 2031.
The Council also discussed a separate proposal to create new hotel districts that would let some apartment-zoned buildings keep rental use. That was a follow-up idea, not part of Bill 9 as adopted. Rules like these can change, and they can be challenged, so check a building's status with the county before you rely on it.
Which short-term rentals are allowed on Maui?
Maui generally allows short-term rentals in three groups: homes with a county STRH permit, bed and breakfast homes with a county B&B permit, and apartment-district units that have rented as transient vacation rentals, which Bill 9 phases out. A condo association's own rules can limit rentals further, whatever the zoning allows.
The three groups in more detail:
- Short-term rental homes with a county STRH permit. The county's STRH page (opens in a new tab) explains the permit process.
- Bed and breakfast homes with a county B&B permit.
- Apartment-district units that have rented as transient vacation rentals, the group Bill 9 phases out.
A condo association can also limit rentals through its own rules, whatever the zoning allows. Ask for the association documents early.
Which taxes does a Hawaiʻi rental operator register for?
An operator of transient accommodations registers for both the general excise tax (GET) and the transient accommodations tax (TAT), according to the Hawaiʻi Department of Taxation. The state TAT rate is 11% from January 1, 2026. The TAT certificate must be displayed.
The Hawaiʻi Department of Taxation (opens in a new tab) covers the details. The TAT registration certificate has to be displayed, and ads have to show the TAT registration number and a local contact.
How does this affect an investment-property loan?
Lenders look at whether nightly renting is legal for the unit. A DSCR loan qualifies mainly on the property's cash flow, subject to underwriting. If that assumes nightly rents, the lender will want the plan for the years after a phase-out date. A unit that must switch to longer-term rental can still work if the numbers hold.
With an investment-property (DSCR) loan, qualification is based primarily on the property's cash flow, subject to underwriting. If that cash flow assumes nightly rents, the lender will want to see that nightly renting is legal for the unit, and the plan for the years after a phase-out date. The numbers just have to work at long-term rents too.
More on this: Business & investment loans
