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.
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. buying a vacation rental in hawaii
STRs are largely confined to Visitor Destination Areas (VDAs). New permits outside these areas have not been issued since 2008. 2. Financial Performance & Realities Hawaii has empowered counties to phase out short-term