Maui Bill 9 and Bill 88 Explained: What Homeowners, Buyers, and Investors Need to Know

If you've been following the Maui real estate market over the past two years, you've probably heard about Bill 9 and Bill 88. These two pieces of legislation have become some of the most discussed topics in Maui, particularly among homeowners, real estate professionals, vacation rental owners, and prospective buyers.

So what do these bills actually mean? More importantly, how could they affect Maui's housing market, property values, and vacation rentals?

Let's break it down.

What Is Maui Bill 9?

Bill 9 was introduced to address Maui's severe housing shortage following the devastating 2023 wildfires and years of declining housing affordability. The legislation phases out many transient vacation rentals (TVRs) operating in apartment-zoned districts, commonly known as properties on the Minatoya List. The goal is to return thousands of units to the long-term housing market for local residents.

The Purpose of Bill 9

The County believes many apartment-zoned properties were originally intended to provide housing for residents rather than visitors. Bill 9 seeks to:

• Increase long-term housing availability
• Reduce investor-owned vacation rental inventory
• Improve affordability for local families
• Help stabilize Maui's housing supply
  
  

Supporters argue the legislation prioritizes housing over tourism and addresses a long-standing imbalance in the market.

Which Properties Are Affected?

Bill 9 primarily impacts apartment-zoned condominium complexes that have historically operated as legal vacation rentals through the Minatoya List exemption.

Many affected properties are located in:

• South Maui (Kihei)
• West Maui (Lahaina, Kaanapali, Honokowai, Napili)
• Hana
• Molokai

Importantly, hotel-zoned resorts, timeshares, bed-and-breakfasts, and many other legal vacation rentals are not affected by Bill 9.

What Is Maui Bill 88?

After Bill 9 was adopted, Maui County introduced Bill 88.

Rather than reversing Bill 9, Bill 88 creates two new hotel zoning classifications (H-3 and H-4). These new zones provide a legal pathway for certain historically operating vacation rental properties to apply for hotel zoning instead of automatically losing their vacation rental use. Bill 88 itself does not rezone any properties—it establishes the framework for future applications and review.

How Bill 9 and Bill 88 Work Together

Think of it this way:

Bill 9

• Phases out many apartment-zoned vacation rentals.
• Prioritizes long-term housing.
  
  

Bill 88

• Creates a possible pathway for some affected properties to seek hotel zoning.
• Requires additional review before any individual property is rezoned.
  
  

In other words, Bill 88 doesn't cancel Bill 9—it provides a process that some properties may pursue.

Frequently Asked Questions

Did Bill 9 ban all vacation rentals in Maui?

No.

Many legal vacation rentals remain unaffected, including hotel-zoned condos, resorts, timeshares, and permitted short-term rentals. Bill 9 focuses primarily on apartment-zoned transient vacation rentals that existed under historical zoning exceptions.

Will Property Values Go Down?

This is one of the biggest questions in Maui real estate.

The answer depends on several factors, including:

• Location
• Zoning
• Rental history
• Buyer demand
• Future rezoning opportunities
  
  

Some investors believe affected properties could lose value if vacation rental income is restricted. Others believe Maui's limited land supply and continued housing demand may support long-term property values. The ultimate outcome will depend on market conditions and how rezoning applications proceed.

Will Maui Have More Housing?

That's the intended goal.

County officials estimate thousands of units could eventually transition into long-term housing, although the actual number will depend on owner decisions, market demand, and future zoning outcomes.

What Does This Mean for Buyers?

If you're considering buying property on Maui, understanding zoning has never been more important.

Buyers should know:

• Whether a property is apartment-zoned or hotel-zoned.
• Whether it is on the Minatoya List.
• Whether vacation rentals are currently permitted.
• Whether future zoning changes may affect ownership goals.
  
  

Working with a knowledgeable Maui Realtor can help you navigate these complexities before making a purchase.

What Does This Mean for Sellers?

If you're selling a property affected by Bill 9 or Bill 88, buyers will likely have questions.

Being prepared with:

• zoning information,
• vacation rental history,
• HOA rules,
• and any updates regarding rezoning
  
  

can help buyers make informed decisions and improve confidence during the transaction.

The Bottom Line

Bill 9 and Bill 88 represent two of the most significant housing policy changes in Maui's recent history.

Bill 9 aims to return apartment-zoned vacation rentals to long-term residential use, while Bill 88 creates a possible pathway for certain properties to seek hotel zoning through a formal review process. Together, they continue to shape the future of Maui's housing market, tourism industry, and real estate landscape.

Whether you're buying, selling, investing, or simply trying to understand how these changes may affect your property, staying informed is essential. As Maui's real estate market continues to evolve, understanding local legislation can help you make confident and well-informed decisions.