Can Your Maui Condo Still Be a Vacation Rental? What Bill 88 Means for Buyers in 2026

If you're considering buying a Maui condo in Kīhei, Wailea, Māʻalaea, or West Maui and short-term vacation rental income is part of your plan, there is one question you need to answer before making an offer:

Will this specific property still be allowed to operate as a vacation rental after Maui's new short-term rental deadlines take effect?

In 2026, that question has become significantly more complicated.

Maui County's Bill 9 created deadlines that will phase out transient vacation rentals in many apartment-zoned condominium properties. Then Bill 88 created two new hotel zoning districts, H-3 and H-4, offering a potential path for some affected properties to continue operating as vacation rentals.

But Bill 88 did not automatically save every Minatoya List condo.

And simply hearing that a condominium is "being considered for H-3 or H-4 zoning" does not mean the property has actually been rezoned.

Here's what Maui condo buyers and owners need to understand in 2026.

What Is Bill 9?

Bill 9 became Ordinance 5909 in December 2025.

The law phases out transient vacation rental use in certain properties located in Maui County's A-1 and A-2 Apartment Districts.

Many of these properties have historically operated as legal vacation rentals under what became known as the Minatoya List.

The Minatoya framework dates back to a 2001 Maui County legal opinion addressing vacation rentals in apartment-zoned properties that had been operating before Maui's zoning rules changed.

For years, these properties were allowed to continue operating as transient vacation rentals despite being located in apartment zoning.

Bill 9 changes that.

Under the current law, affected West Maui properties may continue qualifying vacation-rental use through December 31, 2028, with the phase-out taking effect January 1, 2029.

Affected properties elsewhere in Maui County may continue through December 31, 2030, with the phase-out taking effect January 1, 2031.

That includes many properties in South Maui.

Does Bill 9 Ban All Vacation Rentals on Maui?

No.

This is one of the most important distinctions for buyers.

Bill 9 does not eliminate every legal vacation rental on Maui.

The law specifically targets transient vacation rental use in certain apartment-zoned properties.

Condos that are already appropriately hotel-zoned operate under different zoning rules, and certain other legally permitted uses may also be treated differently.

So if you're purchasing a Maui condo, asking whether "Maui is banning vacation rentals" is not really the right question.

The better question is:

What is the zoning and legal vacation-rental status of this specific property?

What Is Bill 88?

Bill 88 was approved by the Maui County Council in June 2026 and became Ordinance 6008, effective June 22, 2026.

The ordinance created two new zoning classifications:

H-3 Hotel District

and

H-4 Hotel District

These new hotel districts generally mirror aspects of Maui's existing A-1 and A-2 Apartment District standards while allowing transient vacation rental use.

The purpose is to create a potential zoning pathway for certain properties that historically operated as vacation rentals but are now affected by Bill 9. Maui Now

Does Bill 88 Automatically Rezone Minatoya List Condos?

No.

This is probably the most important thing buyers should understand.

Bill 88 created the H-3 and H-4 zoning categories. It did not automatically place any condominium into those zoning districts.

Properties still have to move through a separate rezoning and community-plan amendment process.

That means there are really two separate issues:

Bill 88 created the zoning tool.

Individual rezoning legislation determines which properties, if any, actually receive H-3 or H-4 zoning.

So seeing a condominium on a proposed H-3/H-4 list is not the same as that condominium already having hotel zoning.

How Many Maui Vacation Rental Condos Could Potentially Receive H-3 or H-4 Zoning?

The County's Temporary Investigative Group identified approximately 4,500 units at roughly 104 properties as candidates for potential transition into the new H-3 and H-4 hotel districts.

That does not mean all 4,500 units will ultimately be rezoned.

It means those properties were identified as potential candidates for further consideration.

The actual rezoning process is now happening in stages. Maui Now

What's Happening With H-3 and H-4 Zoning Right Now?

The first major rezoning package is already moving through the legislative process.

On July 24, 2026, the Maui County Council voted 7-1 to refer two measures involving approximately 2,056 apartment-zoned vacation rental units to the Maui Planning Commission.

The measures are associated with Resolutions 26-110 and 26-111.

Council Member Keani Rawlins-Fernandez cast the lone opposing vote, while Council Member Gabe Johnson was absent.

The package includes properties in South Maui, Māʻalaea, and West Maui. Maui Now

Which Maui Condo Properties Are Currently Being Considered?

The properties currently moving through the process fall into different categories.

Resolution 26-110 includes properties with characteristics such as timeshare use, leasehold interests, single ownership, variances, or other circumstances.

Examples identified during the process include:

Maui Sunset

Maui Hill

Hono Kai

Milowai-Māʻalaea

Kahana Outrigger

Hale Mahina Beach Resort

Kāʻanapali Royal

Resolution 26-111 includes properties the County says function more like hotels, including characteristics such as front desks, property-wide housekeeping, and significant on-site staffing.

Examples include:

Wailea Ekahi I, II and III

Wailea Ekolu

The Palms at Wailea

Papakea

Maui Eldorado

Other properties are also included in the broader proposals. Maui Now

The important thing for buyers is that these lists are evolving.

A property's inclusion in a resolution means it is being considered for rezoning.

It does not mean the rezoning is final.

Has Any Maui Condo Actually Completed the H-3 or H-4 Rezoning Process Yet?

As of September 2, 2026, the first major group of proposed H-3/H-4 rezonings is still moving through the planning and legislative process.

The Maui County Council has referred approximately 2,056 units to the Maui Planning Commission for review, but referral is not final approval. Maui Now

The Maui Planning Commission's currently posted September 8 agenda does not show final H-3/H-4 rezoning action on that meeting agenda, so buyers should not assume that a property under consideration has already completed the process. Maui County

Does a Condo Association Have to Apply Individually?

This is where I would change the wording from your original draft.

The current rezoning effort is not simply a situation where every individual HOA independently files a normal rezoning application.

The County Council itself has initiated legislation that would amend community plans and zoning for groups of identified properties.

Associations, owners, County officials, planning commissioners, and the County Council can all play roles in that process.

For a buyer, the practical question remains the same:

Where is this particular property in the rezoning process, and what position has the association taken?

Is H-3 or H-4 Rezoning Guaranteed?

No.

Even if a property has been identified as a potential H-3 or H-4 candidate, the final outcome remains uncertain until the complete legislative process is finished.

That process can involve:

Planning Commission review

public testimony

community-plan amendments

zoning legislation

County Council action

and potentially additional amendments before a final decision.

That is why buyers should be extremely careful about purchasing a property based on an assumption that future hotel zoning is guaranteed.

What Does This Mean If You're Buying a Maui Vacation Rental Condo?

If short-term rental income is important to your purchase, I would investigate several things before making an offer.

First, determine the property's current zoning.

Second, determine whether it is affected by Ordinance 5909, commonly called Bill 9.

Third, determine whether the property has been identified for potential H-3 or H-4 rezoning.

Fourth, review what the condominium association has communicated to owners about the issue.

Fifth, understand that proposed rezoning and completed rezoning are two completely different things.

And finally, ask yourself whether the property still makes financial sense if transient vacation rental use eventually ends.

That last question is especially important.

A buyer should not purchase an affected condo based solely on the assumption that H-3 or H-4 zoning will ultimately preserve vacation rental use.

Can Two Nearby Maui Condos Have Completely Different Vacation Rental Futures?

Yes.

And this is one of the most important lessons from the current Maui condo market.

Two condominium complexes can sit almost next door to each other and have very different:

zoning

Bill 9 exposure

rental rules

association policies

financing conditions

insurance situations

and potential H-3/H-4 outcomes.

That's why broad statements like "Kīhei condos can vacation rent" or "Minatoya condos are losing vacation rentals" don't tell a buyer enough.

You need to investigate the individual property.

Why Are So Many Minatoya List Owners From Outside Maui?

UHERO's research found that approximately 85% of the 6,172 Minatoya List units it studied had owners with out-of-state mailing addresses.

About 36% had California mailing addresses, 12% Washington addresses, and 8% Canadian addresses.

UHERO estimated that roughly 450 affected vacation-rental units were owned by Maui County residents. UHERO

That ownership pattern is part of the larger policy debate surrounding Bill 9.

Supporters of the vacation-rental phase-out argue that apartment-zoned units should return to Maui's residential housing supply.

Opponents argue that many of these properties were legally purchased and operated as vacation rentals for decades and that eliminating that use could hurt owners, visitor spending, jobs, property values, and County tax revenue.

The H-3/H-4 process represents one attempt to determine whether certain properties function more appropriately as visitor accommodations than residential housing.

Is Buying a Minatoya List Condo a Bad Idea in 2026?

Not necessarily.

It depends entirely on why you're buying it.

For someone purchasing a condo primarily as a residence, second home, retirement property, or potentially a long-term rental, the uncertainty surrounding vacation-rental rights may matter much less.

In fact, regulatory uncertainty can sometimes create opportunities for buyers who aren't dependent on short-term rental income.

For a buyer whose investment model requires nightly vacation rental revenue, however, the stakes are much higher.

That buyer needs to understand exactly what happens financially if the property does not ultimately receive H-3 or H-4 zoning.

What's Happening in the Maui Condo Market?

Despite the regulatory uncertainty, Maui condo sales activity increased substantially during the summer of 2026.

Realtors Association of Maui data for July showed 82 condo sales, up 54.7% from the same month a year earlier.

The countywide median condo sale price was $690,000, up 2.2% year over year.

Those numbers don't mean every part of the condo market is recovering equally.

Individual complexes can perform very differently depending on location, zoning, insurance costs, HOA fees, special assessments, financing availability, condition, and short-term rental status.

That's why building-specific analysis has become increasingly important in today's Maui market.

What Does Bill 88 Mean for Maui Condo Sellers?

If you're selling a property affected by Bill 9, buyers are likely to have questions about its future rental status.

Accurate information matters.

If your property is being considered for H-3 or H-4 rezoning, that may be relevant to potential buyers.

But sellers and agents should be careful not to market proposed zoning as though it has already been approved.

There is a major difference between:

This property is being considered for H-3/H-4 zoning

and

This property has H-3/H-4 hotel zoning.

Until the process is complete, buyers should understand that distinction clearly.

So, Can Your Maui Condo Still Be a Vacation Rental?

The answer is:

It depends on the specific property.

Some Maui condos are already located in zoning that permits transient vacation rental use.

Some apartment-zoned condos are affected by Bill 9 and currently face the 2029 or 2031 phase-out deadlines.

Some of those properties are now being considered for H-3 or H-4 hotel zoning.

And others may not ultimately receive that zoning.

That's why the days of simply asking whether a condo is "on the Minatoya List" are essentially over.

In 2026, buyers need to understand the entire picture:

current zoning

Bill 9 status

proposed H-3/H-4 status

association position

financing

insurance

HOA finances

and what the property is worth under more than one possible future scenario.

The Bottom Line

Bill 88 is significant because it creates a real pathway for some Maui vacation-rental properties to potentially remain in transient use after the Bill 9 deadlines.

But it is a pathway, not a guarantee.

As of September 2026, the first major group of proposed H-3 and H-4 rezonings is working through the governmental review process, and roughly 2,056 units have been referred to the Maui Planning Commission for consideration. Maui Now

For anyone buying a Maui condo right now, the safest approach is to evaluate each property individually rather than relying on general statements about Bill 9, Bill 88, or the Minatoya List.

If you're considering a condo in Kīhei, Wailea, Māʻalaea, West Maui, or elsewhere on the island and aren't sure how Bill 9 or H-3/H-4 zoning affects it, I'm happy to help you research the specific complex and understand what is known today.

I'm Benjamin Finnerty, REALTOR® on Maui and Director of Sales for The 808 Team. I work with buyers and sellers throughout Maui and closely follow the zoning, financing, insurance, and market changes affecting Maui condominium ownership.

Benjamin Finnerty REALTOR® RS-83812
Keller Williams Realty Maui RB-21851
808-481-9748
Benjamin@the808team.com
benjamin.the808team.com

This article reflects publicly available information as of September 2, 2026 and is intended for general informational purposes only. Maui County zoning legislation and individual property status can change. Buyers and owners should independently verify current zoning, permitted use, condominium documents, and legal requirements and consult qualified legal, tax, lending, insurance, and other professionals when appropriate.