Bill 9, Bill 88, and the Maui Condo Market: What Buyers and Owners Need to Know Right Now

By Benjamin Finnerty, The 808 Team — Maui Living Guide | Last updated August 17, 2026

If you've been watching Maui condo listings over the past year and wondering why prices have moved so much, there's a simple explanation: the rules of the game are being rewritten in real time. Maui County is in the middle of the largest short-term rental phase-out in U.S. history, a brand-new zoning bill just opened a possible escape hatch for some owners, and two lawsuits are working their way through circuit court. All of it is showing up directly in condo pricing.

Whether you're eyeing a vacation condo as an investment, thinking about selling one, or just trying to understand why South Maui listings look different than they did two years ago, here's where things actually stand as of this month — and what it means for your next move.

Quick Answer: Maui's Condo Rental Rules in Brief

Maui County's Bill 9 (signed December 2025) requires short-term vacation rentals in apartment-zoned "Minatoya List" condos to stop operating by January 1, 2029 in West Maui and January 1, 2031 in South Maui and the rest of the county. Bill 88, passed June 19, 2026, created a narrow, building-by-building rezoning path (H-3/H-4 hotel zoning) that lets some individual condo associations apply to keep renting short-term — but it is not automatic and is still being contested. Hotel- and business-zoned condos are unaffected by either bill. As of mid-2026, apartment-zoned condo prices are down close to 50% from their 2022–2023 peak, while hotel-zoned buildings have held their value.

Bill 9: The Phase-Out, in Plain Terms

Signed into law by Mayor Richard Bissen in December 2025, Bill 9 phases out short-term vacation rentals in apartment-zoned buildings — the roughly 7,000 condo units known collectively as the "Minatoya List," named for a 2004 county attorney opinion that allowed these units to operate as vacation rentals despite sitting in apartment-zoned districts. That decades-old workaround is being closed.

The timeline is staggered by region:

• West Maui (Lahaina, Kaanapali, Honokowai, Kahana, Kapalua): short-term rental operations must stop by January 1, 2029
• South Maui and the rest of the county (Kihei, Wailea, Maalaea, Hana, Molokai): the deadline is January 1, 2031

Enforcement leans on penalties Maui County voters approved back in 2018: a $20,000 initial fine plus $10,000 for every additional day a unit operates in violation. Notably, county data shows around 94% of the affected units are owned by people who don't live in Maui County — which is exactly why this has become such a contentious, high-stakes issue locally, tied closely to the post-Lahaina wildfire push for more long-term housing.

Bill 88: A Narrow New Off-Ramp

Here's the newest wrinkle, and it's only a couple of months old. On June 19, 2026, the Maui County Council voted 7-2 to pass Bill 88, creating two new hotel-zoning classifications (H-3 and H-4) that could let certain Minatoya List condos continue operating as short-term rentals instead of converting to long-term housing.

A few important caveats before anyone gets too excited about this as a workaround:

1. It's not automatic. Mayor Bissen was explicit that Bill 88 "does not unilaterally reclassify any properties." Each condo association or building would need to individually apply, go through Planning Commission review, and win County Council approval — building by building, not countywide.
2. The planning commissions already said no. All three county planning commissions recommended denial of the H-3/H-4 concept earlier this year before the Council pushed it through anyway, so expect a genuinely contested approval process at the building level.
3. It's politically sensitive. Community advocacy groups like Lahaina Strong have argued only a small handful of properties — closer to a dozen — genuinely function like traditional hotels and deserve an exemption, versus the roughly 4,500 units that could theoretically apply.

If you're considering a specific building, the practical question isn't "is Bill 9 in effect" — it's "has this building's association filed for H-3/H-4 rezoning, and how likely is it to succeed?" That's a building-specific answer, not a market-wide one, and it's exactly the kind of due diligence worth doing with a local agent before you write an offer.

The Actual List, Building by Building

This is where things get genuinely useful for anyone evaluating a specific property, because the process isn't a single up-or-down vote — it's being handled building by building through a series of numbered council resolutions. According to the county's master Minatoya/TIG Exhibit 2 rezoning list (updated July 31, 2026), of the roughly 7,167 units on the full Minatoya List, 4,519 units belong to buildings that are actually named in "TIG Exhibit 2" — the working list of properties pursuing rezoning — and about 3,785 units currently have a specific rezoning outcome proposed across the resolutions moving through Council.

A few examples of how that breaks down:

• Resolution 26-110 is the largest bucket, proposing mostly H-4 hotel zoning for dozens of buildings, from large complexes like Kamaole Sands (440 units), Hale Kaanapali (258 units), Maui Sunset (225 units), and Kauhale Makai (169 units) down to small properties with just a handful of units.
• Resolution 26-111 covers another set of sizable Wailea and West Maui properties, including Papakea (364 units), Maui Eldorado (205 units), the three phases of Wailea Ekahi (100, 92, and 104 units respectively), Wailea Ekolu (148 units), and Luana Kai (113 units) — mostly proposed for H-3 zoning in Wailea's case.
• Resolution 26-129 started narrower, covering buildings like Kihei Bay Surf, Kihei Bay Vista, Hale Kai I, Hale Ono Loa, Island Sands, Lokelani, Maalaea Kai, and Pikake. It's since become a moving target: two competing council member amendments (one from Council Member Cook, one from Council Member Lee) are each proposing to add more buildings — among them Kamaole One, Kihei Resort, Polynesian Shores, Shores of Maui, Noelani, Nohonani, Puunoa Beach Estates, Hoyochi Nikko, Kahana Reef, Maalaea Banyans, and Makani Sands.
• Resolution 26-130 picked up a handful of additional properties later, including 10 Walaka Street and the two Makai Sunset Inn buildings on Front Street.

The practical takeaway: a building's rezoning status isn't settled just because Bill 88 passed. Buildings on an adopted resolution have a defined proposed zoning designation (H-3 or H-4) on record. Buildings that only appear in a pending council amendment — like several of the properties under the Cook and Lee amendments to Resolution 26-129 — are still in limbo, and their fate could shift before final adoption. If you own or are shopping in one of these complexes, ask your agent to check which resolution number, if any, applies to that specific address and whether it's been adopted yet. It's a quick lookup against the current county list, and it tells you far more than the building's name or its current STR income ever could.

The Legal Cloud Still Hanging Overhead

Two lawsuits were filed within days of Bill 9's signing: Malter v. Maui County (Kaanapali Royal owners, December 2025) and Lynam v. County of Maui, which seeks class-action status on behalf of Minatoya List owners countywide. Both argue the phase-out amounts to an unconstitutional "regulatory taking" — eliminating a property use that's existed for roughly 45 years without compensating owners for the lost value. As of the most recent reporting, both cases remain pending in 2nd Circuit Court with no preliminary injunction granted, meaning the phase-out timeline is legally intact for now. That could change, and it's worth checking in on before making a long-horizon investment decision tied to a 2029 or 2031 deadline.

What It's Doing to Prices

This regulatory uncertainty has hit the condo market hard, and that's where the opportunity — or the risk, depending on your position — comes in. Maui condo prices fell roughly 34% from their August 2024 peak of about $972,000 down to a low near $642,500 in January 2026, a far steeper drop than the single-family home market, which has held up much better (Maui's single-family median was still north of $1.17 million as of May 2026).

But that blended, market-wide number hides a much sharper split, and zoning is the reason why. Apartment-zoned condos — the Minatoya List units directly caught in the Bill 9 phase-out — have taken the brunt of the correction, with prices down closer to 50% from their 2022–2023 highs in many complexes. Hotel- and business-zoned buildings, by contrast, aren't touched by Bill 9 at all, and it shows: those properties have held up far better, with some well-established hotel-zoned complexes like Wailea Elua seeing little to no price decline at all. If you're comparing two condos with similar square footage and similar list prices, the zoning designation behind each one is doing most of the explaining.

There are early signs the broader condo market may be finding a floor: prices have held relatively flat for about five months with a slight uptick recently, and condos are now selling at roughly 94% of asking price — meaning buyers are routinely negotiating meaningful discounts, particularly on apartment-zoned inventory. Hotel- and business-zoned units are increasingly seen as the more stable, lower-risk category for investors precisely because they sidestep the Bill 9 timeline entirely.

What This Means If You're Buying, Selling, or Just Watching

If you're shopping right now, this is arguably the most negotiating leverage condo buyers have had on Maui in years — but the smart move is pricing each property on what it will realistically be worth as a long-term residential asset after its rental runway ends, not just today's short-term cap rate. If you own a Minatoya List unit and are weighing a sale, understanding your building's specific zoning status, whether an H-3/H-4 application is realistic, and how nearby comps have adjusted is essential before you set an asking price.

Frequently Asked Questions

What is Bill 9 on Maui? Bill 9 is a Maui County law, signed in December 2025, that phases out short-term vacation rentals in apartment-zoned condos on the "Minatoya List." Rentals must stop by January 1, 2029 in West Maui and January 1, 2031 in South Maui and the rest of the county.

What is the Minatoya List? The Minatoya List is the group of roughly 7,167 condo units in apartment-zoned buildings that have been allowed to operate as short-term vacation rentals since a 2004 county attorney opinion (attorney Corinne Minatoya) interpreted county code as permitting the use. Bill 9 closes that interpretation going forward.

What is Bill 88 and does it let owners keep renting short-term? Bill 88, passed by the Maui County Council on June 19, 2026, creates two new hotel-zoning classifications (H-3 and H-4). A condo building can apply to be rezoned into one of these classifications, which would allow it to keep operating as a short-term rental. It is not automatic — each building must go through Planning Commission review and County Council approval individually.

Are hotel-zoned or business-zoned Maui condos affected by Bill 9? No. Bill 9 only applies to apartment-zoned units on the Minatoya List. Condos already in hotel or business zoning districts can continue operating as short-term rentals and are not subject to the phase-out or its deadlines.

How much have Maui condo prices dropped because of Bill 9? Market-wide, Maui condo prices are down roughly 34% from their August 2024 peak. But apartment-zoned Minatoya List condos — the units directly affected by Bill 9 — are down closer to 50% from their 2022–2023 highs, while hotel- and business-zoned buildings have held their value much better, with some seeing little to no decline.

Is Bill 9 being challenged in court? Yes. Two lawsuits — Malter v. Maui County and Lynam v. County of Maui — are pending in 2nd Circuit Court, arguing the phase-out is an unconstitutional taking of property rights without compensation. As of the most recent update, no preliminary injunction has been granted, so the phase-out deadlines remain legally in effect.

How do I find out if my condo or a building I'm considering is affected? Check the building's address against the county's Minatoya/TIG Exhibit 2 master list and note whether it falls under an adopted rezoning resolution (such as 26-110, 26-111, 26-129, or 26-130) or is still pending. A local agent with access to the current list can confirm this in minutes — see contact information below.

Talk to a Local Expert About Your Specific Building

Every one of these rules comes down to one specific address, one specific zoning designation, and one specific resolution number — general headlines won't tell you what your building's situation actually is. I track the Minatoya List, TIG Exhibit 2, and every Bill 9 and Bill 88 resolution as they're updated, and I'm happy to run a free, no-obligation check on any Maui condo you own or are considering.

Benjamin Finnerty | The 808 Team | Maui Living Guide Call or text: 808-481-9748 Email: Benjamin@the808team.com

Reach out anytime — whether you're deciding when to sell a Minatoya List unit, evaluating a hotel-zoned condo as a more stable alternative, or just want a straight answer about where a specific building stands.