Maui Bill 9, Bill 88 & Short-Term Rental Zoning: What Condo Owners and Buyers Need to Know

The Kapalua Bay Villas are an Apartment Zoned condominium located in the Kapalua Resort

The conversation surrounding Maui’s short-term rentals has evolved significantly over the past two years. What began as a proposal to phase out transient vacation rental use in certain apartment-zoned condominium properties has now become one of the most important zoning and land-use issues affecting Maui condo buyers, sellers, and property owners.

In response to Maui’s affordable housing crisis, Mayor Richard Bissen introduced Bill 9 in 2024 with the goal of phasing out short-term rental use in apartment-zoned properties. After months of community input, debate, testimony, and revisions, Bill 9 was signed into law in December 2025.

While Bill 9 was intended to increase long-term housing opportunities and incentivize residential use, it has also been one of the most closely watched and contested pieces of legislation in recent Maui real estate history. Owners, buyers, visitor industry businesses, and community members have raised questions about affordability, property rights, economic impacts, association dues, insurance costs, tax revenue, and whether many of the affected properties are realistically suited for affordable housing.

In response to some of those concerns, Maui County also approved Bill 88, which creates a new potential re-zoning pathway for certain properties affected by Bill 9.

Understandably, buyers, sellers, and condo owners have a lot of questions.

Has Maui banned vacation rentals?

Why was Bill 9 passed?

What is Bill 88?

How will I know whether a condo will still be legal to rent short term?

How important is zoning when buying a Maui condominium?

The short answer is this: zoning has never been more important when purchasing or owning a Maui condominium.

Bill 9 Does Not Ban Vacation Rentals on Maui

One of the biggest misconceptions surrounding Bill 9 is that Maui County eliminated short-term rentals.

That is not what happened.

Bill 9 is specifically aimed at apartment-zoned condominium properties and does not apply to hotel-zoned condominium properties.

This distinction matters tremendously.

For historical context, Maui’s apartment zoning initially allowed short-term rental use. That changed in 1989, when Maui County amended the code to require a minimum rental period of 180 days in apartment-zoned districts. In later years, certain apartment-zoned properties that were built before the 1989 code change and met specific criteria were recognized as having vested rights to conduct transient vacation rental use under a 2001 legal opinion by Maui County Corporation Counsel Richard T. Minatoya.

Those properties became commonly known as the “Minatoya List” properties, and the use was later codified in Chapter 19.12.020 of the Maui County Code.

Under Bill 9, apartment-zoned properties that have historically relied on that legal nonconforming short-term rental use must phase out transient vacation rental operations by January 1, 2029, in West Maui and by January 1, 2030, in the rest of Maui County.

Hotel-zoned properties, timeshares, bed and breakfasts, and many other legally permitted visitor accommodations are not affected by Bill 9.

If you are trying to determine whether a particular condominium is already hotel-zoned, I have also compiled a Guide to Maui’s hotel-zoned condominium properties, which can be a helpful resource for buyers and owners evaluating properties with zoning that allows vacation rental opportunities.

This distinction is critical because two neighboring oceanfront condominium properties may have very different long-term outlooks based solely on their zoning designation.

Why Was Bill 9 Passed?

Maui County’s stated goal in passing Bill 9 is to increase long-term housing opportunities for local residents by transitioning thousands of apartment-zoned vacation rentals back into the residential housing inventory.

Supporters believe this will help address Maui’s housing shortage by making more units available for local families and long-term residents.

Opponents argue that many of these properties were designed, marketed, financed, and purchased specifically as visitor accommodations and are unlikely to become affordable workforce housing. Many of the affected properties are oceanfront or resort-oriented condominiums with high maintenance fees, significant insurance costs, and ownership expenses that may make them challenging for long-term residential use.

It's important to note that Bill 9 was proposed before condominium insurance rates increased dramatically in the wake of the Lahaina fire. In most complexes, rising insurance premiums have contributed to substantial increases in monthly association dues, adding another layer to the affordability conversation.

Others have expressed concerns about potential impacts on tourism, local businesses, tax revenues (property taxes, general excise taxes and transient accommodations taxes), and employment.

These differing viewpoints continue to shape the public conversation, and it will likely take years before the full effects of Bill 9 can be measured.

Bill 88 Creates a New Legal Pathway — But It Does Not Replace Bill 9

Following the adoption of Bill 9, Maui County also approved Bill 88 in June 2026.

Rather than reversing Bill 9, Bill 88 creates two new hotel zoning classifications: H-3 and H-4. These new zoning districts establish a process through which qualifying apartment-zoned properties may apply to be rezoned.

This is an important distinction.

Bill 88 does not automatically convert apartment-zoned vacation rental properties into hotel zoning. Instead, it creates a legal framework that allows individual condominium properties to seek hotel zoning through Maui County’s established review process.

Whether a particular project ultimately qualifies will depend on future County review, public hearings, community input, Planning Commission recommendations, and applicable zoning and land-use criteria.

For owners of apartment-zoned vacation rental properties impacted by Bill 9, Bill 88 represents a potential opportunity — but not a guarantee.

That does not mean every property will qualify. It does mean that Maui’s short-term rental conversation has moved from a single phase-out law to a more complex, property-by-property zoning discussion.

Maui County Council Continues to Evaluate Potential Rezoning

The conversation surrounding Maui’s short-term rental market did not end with the passage of Bill 88. The Maui County Council continues to evaluate how and whether certain apartment-zoned condominium properties should be considered for rezoning under the new H-3 and H-4 hotel zoning classifications.

As part of that ongoing process, the Maui County Council Housing and Land Use Committee, chaired by Council member Nohelani Uʻu-Hodgins, considered Resolution 26-110 and Resolution 26-111. Both resolutions were introduced by Chair Uʻu-Hodgins and relate to the referral of proposed rezoning measures to the Maui Planning Commission.

During the discussion, U'u-Hodgins explained that the HLU's Temporary Investigative Group (TIG) evaluated six primary factors when determining which properties should be included in the proposed zoning changes:

• Timeshare properties
• Leasehold properties
• Properties that "act like a hotel"
• Affordability
• Sea Level Rise Exposure Area (SLR-XA)
• Smaller complexes with fewer than five units, commonly referred to during the discussion as the "onesie twosies"

If implemented, Resolution 26-110 would transition the following A-1 zoned properties to H-3 and A-2 zoned properties to H-4

• Ma’alaea: Hono Kai, Lauloa Maalaea, Maalaea Kai, Milowai-Maalaea, and Maui Sunset.
• Kihei: Maui Hill, Maui Sunset, My Waii Beach Cottage, Indo Lotus Beach House, Villa Moana, Kapu Townhouse, Waiohuli Beach Duplex, and several unnamed parcels on Iliili Road, Uluniu Road, and Halama Street.
• Honokowai/Mahinahina/Kahana::Hale Mahina Beach Resort, Hale Ono Loa,  Kahana Outrigger, Kahana Village, Kuleana, Paki Maui, and Maui Sands.
• Kāʻanapali: Kaʻanapali Royal

If implemented, Resolution 26-111 would change the zoning from Multi-Family to Hotel, A-1 to H-3, and A-2 to H-4 for the following properties

• Wailea: Wailea Ekahi, Wailea Ekolu, The Palms at Wailea I
• Kihei: Kamaole Sands, Luana Kai
• Mahinahina: Mahina Surf
• Kaanapali: Papakea, Maui Eldorado

It would also change zoning for residentially zoned sections of Papakea and Mahina Surf to Resort/Hotel.

These resolutions represent an early step in the Council-initiated rezoning process by formally sending the question of specific property rezoning to the Maui Planning Commission for review and recommendation. From there, the Planning Commission may hold hearings, receive public testimony, evaluate the proposed zoning changes, and return recommendations to the full County Council.

For condominium owners, buyers, and sellers, this is an important distinction. A property’s inclusion in a resolution or rezoning discussion does not mean that hotel zoning has been approved. It means the property may be entering a public review process that could ultimately result in future Council action — or could be changed, delayed, or denied as the process unfolds.

Because this remains an evolving issue, owners of apartment-zoned vacation rental properties should continue monitoring County actions closely. Each condominium project may follow a different path depending on its history, existing entitlements, current use, physical characteristics, association input, public testimony, and the outcome of the County’s review process.

For buyers, this is exactly why property-specific due diligence is so important. It is no longer enough to ask whether a condo has historically been used as a vacation rental. Buyers now need to understand the current zoning, legal rental status, association rules, applicable County legislation, and whether there is any pending or potential rezoning activity that could affect the property.

How Will I Know If a Property Will Still Be Legal to Rent?

Because every condominium project has its own history, approvals, zoning, governing documents, and rental rules, buyers should avoid assuming that every apartment-zoned property will be treated the same way.

Some properties may already be hotel-zoned and therefore outside the scope of Bill 9.

Some may be apartment-zoned properties affected by the Bill 9 phase-out dates.

Some may pursue a future zoning change under Bill 88.

Others may not qualify, may choose not to apply, or may be better suited for owners seeking personal use, second-home ownership, or long-term residential use.

The key is to evaluate each property individually.

Important questions include:

• Current zoning designation
• Whether short-term rentals are presently allowed per County Code Chapter 19.12.020
• Whether Bill 9 applies
• Whether the property may be eligible for H-3 or H-4 zoning under Bill 88
• Whether any Council or Planning Commission action is pending
• Existing HOA and AOAO restrictions, including House rules and rental minimums
• Financing considerations and Pending Litigation
• Insurance availability and association dues
• Long-term ownership goals

These questions are now part of nearly every Maui condo transaction involving vacation rental use.

Zoning Has Become One of the Most Important Factors in Maui Real Estate

For many years, buyers primarily focused on location, view, amenities, rental history, monthly HOA fees, and overall property condition.

Those factors still matter. But zoning and the Buyer's intended use have are significant consideration when evaluating Maui condominium properties.

Today, two properties in the same neighborhood — sometimes even right next to each other — may have very different long-term rental outlooks depending on whether they are hotel-zoned, apartment-zoned, on the Minatoya List, subject to Bill 9, or potentially eligible for rezoning under Bill 88.

This is especially important in resort areas such as Kapalua and Kaanapali in West Maui and Wailea and Makena in South Maui, where many condominium properties have historically served visitors but do not all share the same zoning designation.

What Does This Mean for Buyers?

While uncertainty can make headlines, it can also create opportunities for well-informed buyers.

The right property depends on your goals, time horizon, and how you plan to use the property.  Due diligence will include attention to zoning, legal use, AOAO rules, rental history, insurance costs, financing, and long-term ownership goals.

What Does This Mean for Sellers?

If you are considering selling a Maui condominium that allows vacation rentals — or has historically operated as one — buyers are going to have questions.

They will want to understand the property’s zoning, rental status, association rules, rental history, insurance costs, and whether the property may be affected by Bill 9, Bill 88, or future County action.

Being prepared with accurate information can help buyers feel more confident during the transaction.

It can also help avoid confusion, delays, or misunderstandings once a property is under contract.

As the market evolves, transparency and education continue to be among the best tools available to both buyers and sellers.

For sellers, this may mean gathering zoning information, reviewing AOAO documents, understanding rental restrictions, and being ready to explain how the property is positioned in today’s changing regulatory environment.

The Legal Landscape Is Still Evolving

Although Bill 9 has been adopted, implementation is not the final chapter.  Multiple lawsuits challenging the legislation remain pending, and the courts may ultimately influence how portions of the law are applied.

At the same time, Bill 88 has created an entirely new zoning framework that will likely shape discussions for years to come as condominium associations and property owners evaluate whether to pursue H-3 or H-4 hotel zoning.

The Council’s consideration of Resolution 26-110 and Resolution 26-111 is another reminder that this process is still active and ongoing.

For that reason, anyone considering buying or selling a Maui vacation rental property should recognize that this remains an evolving regulatory environment.

My Perspective

I have been helping clients buy and sell Maui real estate since 1997, through changing markets, new regulations, shifting lending environments, and economic cycles.  While markets dislike uncertainty, they also adapt.

The fundamentals that have always made Maui special have not changed. People continue to return to Maui because of the island’s natural beauty, world-class beaches, outdoor lifestyle, limited inventory, and the emotional connection so many people feel to this place.

If you are considering buying or selling a Maui condominium and would like to understand how Bill 9, Bill 88, zoning, or pending County action may affect a particular property, I would be happy to discuss your goals and help you navigate today’s market.

Related Resources

Maui Short-Term Rentals: A List of Maui’s Hotel-Zoned Properties

Maui Short-Term Rentals: How to tell if it's a Legal Rental

Maui Short Term Rentals FAQ

This article is intended for informational purposes only and should not be considered legal advice. Because legislation, court decisions, County policies, and zoning interpretations continue to evolve, buyers and property owners should consult qualified legal counsel regarding how these laws apply to a specific property.