Kai Ioh | December 2025
Maui County just took a decisive step that every Hawaii property owner should be paying attention to.
Earlier this month, Mayor Richard Bissen signed Bill 9 into law, following final approval by the Maui County Council. The goal is clear and direct: restore housing availability for residents by phasing out certain short-term vacation rentals in apartment-zoned areas.
While Bill 9 applies only to Maui County, its implications reach far beyond one island. For buyers, sellers, and investors on the Big Island and across Hawaii, this legislation signals a broader shift in how counties may approach short-term vacation rental (STVR) regulation moving forward.
What Is Maui’s Bill 9?
Bill 9 is a zoning correction law.
It eliminates a long-standing exemption that allowed transient vacation rentals (TVRs) to operate in apartment-zoned districts, areas originally intended for long-term residential housing. These properties are often referred to as Minatoya List units.
Under Bill 9:
Apartment-zoned properties may no longer operate as short-term rentals unless rezoned
More than 6,000 units are expected to transition back to long-term residential use
Hotel, resort-zoned properties, timeshares, and licensed bed-and-breakfasts remain unaffected
Key takeaway: Bill 9 does not eliminate tourism or short-term rentals on Maui. It realigns zoning with its original residential purpose.
Why Did Maui Pass Bill 9?
The urgency intensified after the Maui wildfires, which exposed and worsened an already critical housing shortage.
According to Maui County:
Short-term rentals account for 21% of Maui’s total housing stock, the highest percentage in Hawaii
94% of affected units are owned by non-residents, many living outside of Hawaii
Thousands of local households could afford these units if returned to the long-term market
County leadership framed Bill 9 as the fastest way to add housing inventory without new construction, while prioritizing residents who live and work on Maui.
What Bill 9 Changes — and What It Doesn’t
What Changes
Apartment-zoned short-term rentals will be phased out
Phase-out deadlines range from 2029 to 2031, depending on location
Owners may pursue rezoning into future H-3 or H-4 hotel districts, subject to approval
What Stays the Same
Approximately 6,500 TVR parcels countywide remain legal
Thousands of hotel units and over 2,400 timeshares and B&Bs continue operating
Tourism remains a central pillar of Maui’s economy
This distinction is critical and often misunderstood.
Why Other Hawaii Counties Are Watching Closely
Maui has always been the first county in Hawaii to enact STVR restrictions. Oahu, Kauai and Big Island followed Maui in the past.
On the Big Island, Hawaii County recently adopted Bill 47, scheduled to take effect in July 2026. While far less sweeping than Maui’s Bill 9, it introduces new compliance standards and reinforces the direction of travel.
The broader pattern is clear:
Counties are under pressure to address housing shortages
Short-term rentals are increasingly part of the policy conversation
Zoning, taxation, and enforcement are becoming more structured
The Big Island Reality: A Different Ownership Profile
The Big Island is not Maui.
Here, many short-term rental owners are:
Resident investors
Second-home owners
Families using limited rentals to offset maintenance, insurance, and property tax costs
Short-term rentals also provide meaningful employment for:
Cleaners
Property managers
Landscapers
Maintenance professionals
At the same time, it’s also true that some operators have taken advantage of loopholes, operating without proper permits or paying incorrect property tax classifications. That imbalance creates frustration — and fuels calls for reform.
The challenge is finding a measured balance that supports housing needs without undermining local livelihoods.
Do Short-Term Rental Restrictions Hurt Tourism?
Global data suggests otherwise.
Cities such as New York, Amsterdam, and Barcelona have implemented strict short-term rental limits. In each case:
Short-term rental supply declined sharply
Hotel occupancy and revenue increased
Visitor demand shifted — it did not disappear
Maui estimates a potential $60 million reduction in tax revenue, but officials describe it as a return to prior-year levels rather than a collapse.
For the Big Island, this raises important questions about revenue mix, workforce transition, and long-term planning.
What Property Owners Should Be Thinking About Now
Whether you own property on Maui, the Big Island, or elsewhere in Hawaii, this is a moment to pause and reassess.
Ask yourself:
What is my property’s zoning?
Is my rental use compliant today — and in 2026 or beyond?
Am I classified correctly for property tax purposes?
How would future regulations affect long-term value?
Regulatory clarity is becoming just as important as location and views.
There are no simple answers. Housing affordability, tourism, local jobs, and investment realities are deeply connected. Each island has its own nuances, and one-size-fits-all solutions rarely work well in Hawaii.
