Typical condo fees range from $500 to $1,500/month and are rising 10–15% annually in older buildings.
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.
Better-performing properties typically yield a 4–6% cash return . 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.
Hawaii is primarily an rather than a high cash-flow market. Typical condo fees range from $500 to $1,500/month
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). All STRs (hosted and unhosted) must register with
STRs are largely confined to Visitor Destination Areas (VDAs). New permits outside these areas have not been issued since 2008. 2. Financial Performance & Realities